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HMRC internal manual

National Insurance Manual

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Special Cases: International: Going to or Coming from Abroad: EEA Regulation 1408/71 (before 1 May 2010): self-employed

Article 13.2(b) of Council Regulation [European Economic Community (EEC)] No. 1408/71

A self-employed person who is a EEA national in the territory of a Member State is subject to the legislation of that Member State even if they are resident in another Member Sate.

Article 14a.1 (a) of Council Regulation [European Economic Community (EEC)] No. 1408/71

People who are EEA nationals normally self-employed in the UK and who wish to work in another EEA country, continue to pay Class 2 and Class 4 contributions if at the outset the work abroad is not expected to last more than 12 months.

The self-employed person must have form E101 to confirm to the Social Security authorities in the other EEA country that UK NICs are payable. Form E101 confirms continuing liability to the UK NI scheme and prevents a demand for contributions from the Social Security scheme of the other EEA country. NICO &EO International Caseworker Services deals with E101 applications from self-employed people in the UK.

Article 14a.1 (b) of Council Regulation [European Economic Community (EEC)] No. 1408/71

If unexpectedly the work in the other EEA country lasts longer than the initial 12 months, the self-employed person can apply to pay Class 2 contributions for a further 12 months. They must complete form E102 (see also NIM33335) which can be obtained from NIC&EO International Caseworker (Newcastle), before the end of the first 12 months and send it to the Social Security authorities of the EEA country in which they are working. Form E102 asks the foreign Social Security authorities to exempt the self-employed person from payment of contributions to their scheme. If the foreign authority agrees the request, they will return form E102 to confirm this. Such an agreement is the authority to continue paying Class 2 NICs for the period agreed on form E102 up to a maximum of 12 months. A copy of form E102 will also be sent to NIC&EO International Caseworker

If the foreign authority does not agree the request, after the expiry of form E101, the self-employed person is subject to the Social Security legislation of the country in which they are working.