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HMRC internal manual

Compliance Operational Guidance

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HM Revenue & Customs
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Supporting Guidance: employer compliance: guidance by subject: liaison: specialist teams - E101 team

E101 or A1 Certificate - workers posted to other European States

(A1 certificates replaced most E101 certificates from 1 May 2010)

When a UK employee is posted abroad to another European Union member state, and wishes to remain in the UK social security system, an E101/A1 Certificate can be applied for. Once an E101/A1 certificate is issued the employee is still liable to UK National Insurance Contributions regardless of the tax and residence status.

The Centre for Non-Residents in Newcastle is the statutory UK authority for the issue and withdrawal of E101/A1 certificates.(This content has been withheld because of exemptions in the Freedom of Information Act 2000)  

A specialist E101/A1 Team, based at Trinity Bridge House, Salford, carries out E101/A1 application audits and EC compliance checks on a national basis.

UK NICs are generally the lowest in Europe and employers can undercut competitors by manipulating the system. Risks addressed by the team are:

  • applications for UK E101/A1s when the employee is not a UK national
  • applications from foreign employers who have no presence in the UK
  • failing to pay NICs in the UK despite using the E101/A1 to avoid paying contributions in the overseas country
  • manipulating subsistence and accommodation expenses for posted workers
  • operating NT codes without authority, and
  • all the EC risks associated with non-E101/A1 employers.

In all cases where E101/A1 certificates is an issue you should

  • contact the E101/A1 team for advice on how to proceed.

Large Businesses

See COG905540 for definition of a large business.

The unit will continue to undertake compliance activity on all relevant employers but should follow the process below for all EU Large Employers/Contractors who will either have a Customer Relationship manager (CRM) or Customer Co-ordinator (CC) appointed by Large & Complex to co-ordinate all HMRC compliance activity.

Those cases with a CRM

  • Only undertake compliance activity with the approval and direction of the CRM.

Those cases with a CC

  • Only after contact with the CC who should be aware of other relevant compliance activity, can liaise with local EC Tax Specialists and will update business overview documents accordingly.

Where clearance is sought in respect of a business that has not had any previous EC activity then a full assurance visit will be appropriate. In this respect the Specialist Team will work the case jointly with the L&C team.

Where such cases are worked in different locations, using different OUIDs then both offices will:

  • register the case on Caseflow and
  • agree a Compliance Revenue share on conclusion of the case.

In this respect it is essential that there is liaison between caseworkers at all key stages.

Where the Specialist Team is in the same location/OUID as the L&C team then only one entry will be made on Caseflow with the total Compliance Revenue entered on conclusion of the intervention.