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HMRC internal manual

National Insurance Manual

Special Cases: International: Going to or Coming from Abroad: EEA Regulation 1408/71 (before 1 May 2010): longer postings (exceptional circumstances)

Article 17 of Council Regulation (EEC) No 1408/71

Where it is in the interest of the employee, Article 17 allows for two or more EEA countries to agree to an employee remaining insured in the home country for a longer period or to except any of the provisions in any of the insurability Articles in Regulation (EEC) 1408/71.

It is possible for the employer to seek an extension to the normal time limits or where a posting may exceed the maximum period of cover from the outset. Usually a maximum period of 5 years can be agreed.

For more details about the normal time limits see NIM33330 and NIM33335 

NIC&EO International Caseworker (Newcastle) deal exclusively with such requests and issue form E101. In Article 17 cases where agreement is made.

Posting more than 12 months from outset

A person is normally insurable under the Social Security scheme of the country of employment NIM33320 

However an employee sent to work in another EEA country on a long term posting (more than 12 months from the outset) can continue paying UK NICs if :

  • the employee has specialist knowledge or skills in that job ; or
  • the employee has specific objectives in the other EEA country for which the employee’s services are required ; or
  • it is in the employee’s interest to remain UK insured

In such cases agreement must be obtained from the foreign authorities and the employee must provide a signed statement confirming they wish to continue contributing to the UK National Insurance scheme. Form E101 will be issued by NIC&EO International Caseworker (Newcastle) where UK NIC continues.

Article 17 not agreed

If the foreign authority does not agree the Article 17 request, the employee is subject to the legislation of the host State. No contributions are payable in the home State