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HMRC internal manual

National Insurance Manual

Class 1A National Insurance contributions: Special Class 1A NICs cases: Workers going or coming from abroad who are provided with benefits: Workers from within the European Economic Area: Posted workers

EEC Council Regulation 1408/71: Article 14.1(a)Article 14.1(a) of EEC Council Regulation 1408/71 provides an exception to the general rule described in

NIM16450 where the employee is a posted worker. The exception allows a worker to continue to pay contributions in the Home State where they are working for an employer and that same employer posts them to work in another Member State for not more than 12 months.


A worker resident in Spain and working for a Spanish company is posted to work for a subsidiary company in the UK for twelve months. The UK employer provides the worker with benefits in kind which are chargeable to UK tax. The worker remains liable for Spanish Social Security contributions and no UK Class 1 NICs are payable. Because there are no Class 1 NICs payable, Class 1A NICs are not due. The worker should supply the UK employer with a copy of a certificate of continuing liability (form E101) issued by the Spanish Authorities as proof that Spanish Social Security contributions are being paid.
Further guidance on Article 14.1(a), including circumstances in which an extension to the 12 months period of exemption from NICs liability can be made is included at NIM33029.