⚠️ We are currently updating our 2021/22 tax guidance across the website
⚠️ The UK left the European Union (EU) on the 31 January 2020 and entered a transition period until 31 December 2020, during which EU law continued to apply in the UK. The Trade and Cooperation Agreement between the UK and EU, detailing the UK’s future relationship with the EU from 1 January 2021, was signed on 30 December 2020. The guidance below has been updated as far as possible to reflect the position as we understand it from 1 January 2021. However, we continue to await guidance on some matters and we will update these pages with any relevant changes as soon as possible after that guidance becomes available.
What if I come from a country with no social security agreement with the UK?
Migrants who are posted to the UK from a country outside of the EEA and Switzerland and with which the UK does not have a bilateral social security agreement may not have to pay UK National Insurance contributions (NIC) for up to 52 weeks, provided they meet certain conditions. From 1 January 2021, these rules also apply to Liechtenstein.
Do I have to pay National Insurance contributions (NIC) in the UK?
Migrants who are posted to the UK from a country outside of the EEA and Switzerland and with which the UK does not have a social security agreement, may not have to pay UK NIC for up to 52 weeks, provided they meet certain conditions. From 1 January 2021, these rules also apply to Liechtenstein. Broadly speaking you need to be employed overseas and then, as part of that overseas employment, you are seconded by your employer to work in the UK.
Migrants who do not meet the conditions will pay UK NIC from the start of their employment in the UK. This will include those who are locally employed in the UK.
Where can I find further information on the conditions?
For more information, go to HM Revenue & Customs’ (HMRC) guidance, RDR1, section 11.21 onwards. You can find this GOV.UK.