HMRC issues second Brexit bulletin for employers

HM Revenue & Customs (HMRC) has issued its second Brexit bulletin for UK employers, issuing guidance relating social security for employees working in the European Union (EU), European Economic Area (EEA) and Switzerland.

The bulletin also highlights other guidance for Brexit, as well as webinars and training grants that are available.

In the bulletin, there is emphasis that should the UK leave the EU without a deal, that the EU Social Security Coordination Regulations will come to an end.

These regulations currently ensure that employers and their workers only pay social security contributions in one country, such as National Insurance contributions (NICs).

As a result, employees would then have to make contributions in the UK as well as in the country in which they are working, in the event of a no-deal Brexit.

UK and Irish nationals that are working in Ireland will see no change to their position, while employees working in EEA countries that wish to maintain their social security record will need to make an application through an online form.

If an employee that is working in the EU, EEA and Switzerland has an A1/E101 form that has been issued in the UK, then they must continue paying NICs in the UK for the length of time indicated on the form.

If the end date is post-Brexit, then the employer will need to contact the relevant authority to seek confirmation as to whether the employee will need to begin paying social security contributions in that country as well.

HMRC previously published guidance in April 2019 relating to social security contributions for UK, EU, EEA and Swiss workers in the event of a no-deal Brexit, which can be found here.