National Insurance – New EU rules
HMRC have published a new website to help employers prepare for new national insurance contribution rules. These rules are relevant for both employees who move around the European Union and for their employers.
The rules will apply from 1 May 2010 and are being introduced as part of the UK’s responsibility in implementing new European Union regulations. HMRC will update their guidance in the run-up to 1 May 2010 to take account of any EU changes.
The rules are relevant where, under EU legislation, an employee is required to pay social security contributions in another member state. Under these circumstances no UK national insurance contributions are due. The EU regulations provide for a new system of forms so that employers and employees can demonstrate that social security payments have been handled correctly. The new form (A1) replaces the old (E101) form from 1 May 2010.
The guidance is divided into the following main headings:
- The basic rule in EU Regulations
- Employed posted workers: employed persons who normally work in the UK but who work temporarily in another Member State
- Employed persons: activities in two or more Member states
- Other groups
- Agreements to vary the rules
- Third Country Nationals
- Transitional rules
- Employers in other Member states can now be subject to UK National Insurance legislation
- Cross border enforcement of social security debts
- Electronic exchange of information
- Further Information
- Frequently Asked Questions