The Social Security (Contributions) Regulations 2001

Case F— U.K. Residence and Persons Abroad

Condition as to residence or presence in Great Britain or Northern Ireland U.K.

145.—(1) Subject to [F1 paragraph (2)], for the purposes of section 1(6) of the Act (conditions as to residence or presence in Great Britain for liability or entitlement to pay Class 1 or Class 2 contributions, liability to pay Class 1A or Class 1B contributions or entitlement to pay Class 3 Contributions) F2 the conditions as to residence or presence in Great Britain or Northern Ireland (as the case requires) shall be—

(a) as respects liability of an employed earner to pay primary Class 1 contributions in respect of earnings for an employed earner’s employment, that the employed earner is resident or present in Great Britain or Northern Ireland(or but for any temporary absence would be present in Great Britain or Northern Ireland) at the time of that employment or is then ordinarily resident in Great Britain or Northern Ireland (as the case may be);

(b) as respect liability to pay secondary Class 1 contributions, Class 1A contributions or Class 1B contributions that the person who, but for any conditions as to residence or presence in Great Britain or Northern Ireland (as the case may be and including the having of a place of business in Great Britain or Northern Ireland), would be the secondary contributor or the person liable for the payment of Class 1B contributions (in this Case referred to as “the employer”) is resident or present in Great Britain or Northern Ireland when such contributions become payable or then has a place of business in Great Britain or Northern Ireland (as the case may be), so however that nothing in this paragraph shall prevent the employer paying the said contributions if he so wishes;

(c) as respects entitlement of a self-employed earner to pay Class 2 contributions, that that earner is present in Great Britain or Northern Ireland (as the case may be) in the contribution week for which the contribution is to be paid;

(d) as respects liability of a self-employed earner to pay Class 2 contributions, that the self-employed earner is ordinarily resident in Great Britain or Northern Ireland (as the case may be), or, if he is not so ordinarily resident, that before the period in respect of which any such contributions are to be paid he has been resident in Great Britain (as the case may be) for a period of at least 26 out of the immediately preceding 52 contribution weeks under the Act, the Social Security Act 1975 F3 or the National Insurance Act 1965 F4 or under some or all of those Acts.

(e) as respects entitlement of a person to pay Class 3 contributions in respect of any year, either that—

(i) that person is resident in Great Britain or Northern Ireland (as the case may be) throughout the year,

(ii) that person has arrived in Great Britain or Northern Ireland (as the case may be) during that year and has been or is liable to pay Class 1 or Class 2 contributions in respect of an earlier period during that year,

(iii) that person has arrived in Great Britain or Northern Ireland (as the case may be) during that year and was either ordinarily resident in Great Britain or Northern Ireland (as the case may be) throughout the whole of that year or became ordinarily resident during the course of it, or

(iv) that person not being ordinarily resident in Great Britain or Northern Ireland (as the case may be), has arrived in that year or the previous year and has been continuously present in Great Britain or Northern Ireland (as the case may be) for 26 complete contribution weeks, entitlement where the arrival has been in the previous year arising in respect only of the next year.

(2) Where a person is ordinarily neither resident nor employed in the United Kingdom and, in pursuance of employment which is mainly employment outside the United Kingdom by an employer whose place of business is outside the United Kingdom (whether or not he also has a place of business in the United Kingdom) that person is employed for a time in Great Britain or Northern Ireland (as the case may be) as an employed earner and, but for the provisions of this paragraph, the provisions of sub-paragraph (a) of paragraph (1) would apply, the conditions prescribed in that sub-paragraph and in sub-paragraph (b) of that paragraph shall apply subject to the proviso that—

(a) no primary or secondary Class 1 contribution shall be payable in respect of the earnings of the employed earner for such employment;

(b) no Class 1A contribution shall be payable in respect of something which is made available to the employed earner or to a member of his family or household by reason of such employment; and

(c) no Class 1B contribution shall be payable in respect of any PAYE settlement agreement in connection with such employment, after the date of the earner’s last entry into Great Britain or Northern Ireland (as the case may be) and before he has been resident in Great Britain or Northern Ireland (as the case may be) for a continuous period of 52 contribution weeks from the beginning of the contribution week following that in which that date falls.

F5 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in reg. 145(1) substituted (6.4.2012) by The Social Security (Contributions) (Amendment No. 2) Regulations 2012 (S.I. 2012/817), regs. 1(1), 7(3)(a)

F2 Section 1(6) was amended by paragraph 56(3) of Schedule 7 to the Social Security Act 1998 (c. 47).

F3 1975 c. 14.

F4 1965 c. 51.

F5 Reg. 145(3) omitted (6.4.2012) by virtue of The Social Security (Contributions) (Amendment No. 2) Regulations 2012 (S.I. 2012/817), regs. 1(1), 7(3)(b)

Payment of contributions for periods abroad U.K.

146.—(1) Where an earner is gainfully employed outside the United Kingdom, and that employment, if it had been in Great Britain or Northern Ireland, would have been employed earner’s employment, that employment outside the United Kingdom shall be treated as employed earner’s employment for the period for which under paragraph (2)(a) contributions are payable in respect of the earnings paid to the earner in respect of that employment provided that—

(a) the employer has a place of business in Great Britain or Northern Ireland (as the case may be);

(b) the earner is ordinarily resident in Great Britain or Northern Ireland (as the case may be); and

(c) immediately before the commencement of the employment the earner was resident in Great Britain or Northern Ireland (as the case may be).

(2) Where, under paragraph (1), the employment outside the United Kingdom is treated as an employed earner’s employment, the following provisions shall apply in respect of the payment of contributions—

(a) primary and secondary Class 1 contributions shall be payable in respect of any payment of earnings for the employment outside the United Kingdom during the period of 52 contribution weeks from the beginning of the contribution week in which that employment begins to the same extent as that to which such contributions would have been payable if the employment had been in Great Britain or Northern Ireland (as the case may be);

(b) subject to [F6 regulations 148 and 148A], any earner by or in respect of whom contributions are or have been payable under sub-paragraph (a) shall be entitled to pay Class 3 contributions in respect of any year during which the earner is outside the United Kingdom from and including that in which the employment outside the United Kingdom begins until that in which he next returns to Great Britain or Northern Ireland (as the case may be);

(c) Class 1A contributions and Class 1B contributions shall be payable in respect of the period specified in sub-paragraph (a).

Textual Amendments

F6 Words in reg. 146(2)(b) substituted (18.7.2007) by The Social Security (Contributions) (Amendment No. 4) Regulations 2007 (S.I. 2007/1838), regs. 1(1), 4

Class 2 and Class 3 contributions for periods abroad U.K.

147.—(1) Subject to [F7 regulations 148 and 148A], a person (other than a person to whom regulation 146(2)(a) applies) may, notwithstanding the provisions of regulation 145(1)(c) and (e), if he so wishes and if he satisfies the conditions specified in paragraph (3) below pay contributions in respect of periods during which he is outside the United Kingdom as follows—

(a) in respect of any contribution week throughout which he is gainfully employed outside the United Kingdom in employment which is not employment in respect of earnings from which Class 1 contributions are payable, he may, if immediately before he last left Great Britain or Northern Ireland (as the case may be), he was ordinarily an employed earner or a self-employed earner, pay a contribution as a self-employed earner;

(b) in respect of any year which includes a period during which he is outside the United Kingdom he may pay Class 3 contributions.

(2) A person who is gainfully employed outside Great Britain and falls within the provisions of paragraph (1)(a) shall for the purposes of that paragraph be treated as being outside the United Kingdom for any period during which he is temporarily in the United Kingdom.

(3) Subject to paragraph (4), the conditions referred to in paragraph (1) are that—

(a) the person has been resident in Great Britain or Northern Ireland (as the case may be) for a continuous period of not less than three years at any time before the period for which the contributions are to be paid;

(b) there have been paid by or on behalf of that person contributions of the appropriate amount—

(i) for each of 3 years ending at any time before the relevant period,

(ii) for each of 2 years ending at any time before the relevant period and, in addition, 52 contributions under either or both the Social Security Act 1975 or the National Insurance Act 1965, or

(iii) for any one year ending at any time before the relevant period and, in addition, 104 contributions under either or both the Social Security Act 1975 or the National Insurance Act 1965, or

(c) there have been paid by or on behalf of that person 156 contributions under either or both the Social Security Act 1975 or the National Insurance Act 1965.

(4) In paragraph (3)—

• “contributions of the appropriate amount” means contributions under the Act the earnings factor derived from which is not less than 52 times the lower earnings limit for the time being for primary Class 1 contributions;

• “contributions under either or both the Social Security Act 1975 or the National Insurance Act 1965” means contributions of any class under section 4, 7 or 8 of the Social Security Act 1975 or section 3 of the National Insurance Act 1965 in respect of any period; and

• “the relevant period” means the period for which it is desired to pay the Class 2 or Class 3 contributions specified in paragraph (1).

Textual Amendments

F7 Words in reg. 147(1) substituted (18.7.2007) by The Social Security (Contributions) (Amendment No. 4) Regulations 2007 (S.I. 2007/1838), regs. 1(1), 5

Conditions of payment of Class 2 or Class 3 contributions for periods abroad U.K.

148.  Entitlement to pay Class 2 or Class 3 contributions under regulations 146 and 147 shall be subject to the following conditions—

(a) that the payment is made within the period specified in regulation 48(3)(b)(i); and

(b) that the payment is made only to the extent to which it could have been made if the contributor had been present in Great Britain or Northern Ireland (as the case may by) and otherwise entitled to make it.

[F8 Conditions of payment of Class 3 contributions: transfers to the Communities’ pension scheme U.K.

148A.— (1) Entitlement to pay Class 3 contributions under regulations 146 and 147 is subject to the condition set out in paragraph (2).

(2) The condition is that a person may not pay a Class 3 contribution for any part of the period to which that person’s Communities transfer relates.

(3) For the purposes of this regulation—

a “Communities transfer” means a transfer to the Communities pension scheme of rights to relevant benefits;

“the Communities’ pension scheme” means the pension scheme provided for officials and other servants of Community institutions and bodies in accordance with regulations adopted by the Council of the European Communities;

“relevant benefits” means benefits under—

(a)

Parts 2 to 5 and 10 of the Act,

(b)

sections 36 and 37 of the National Insurance Act 1965 (graduated retirement benefit), and

(c)

sections 1(2) and 2 of the Jobseekers Act 1995 (contribution-based jobseeker’s allowance).]

Textual Amendments

F8 Reg. 148A inserted (18.7.2007) by The Social Security (Contributions) (Amendment No. 4) Regulations 2007 (S.I. 2007/1838), regs. 1(1), 6

[F9 148B.— (1) This regulation applies, in relation to a tax year, in respect of a person who is in that tax year—

(a) in employment as a self-employed earner; and

(b) a person to whom the Act applies by virtue of Regulation (EC) No 1408/71 or Regulation (EC) No 883/2004.

(2) Section 11 of the Act has effect in relation to the employment as if for subsection (3) there were substituted—

“(3) “Relevant profits” means profits from the employment in respect of which Class 4 contributions would be payable under section 15 for the relevant tax year if—

(a) for the purposes of income tax, the earner were resident in the United Kingdom in that year;

(b) the employment were carried on by the earner in Great Britain;

(c) the amount of the profits were to exceed the amount specified in subsection (3)(a) of that section in excess of which the main Class 4 percentage is payable; and

(d) any applicable arrangements having effect under section 2 of the Taxation (International and Other Provisions) Act 2010 (double taxation arrangements) were to be disregarded.”]

Textual Amendments

F9 Reg. 148B inserted (6.4.2015) by The Social Security (Miscellaneous Amendments No. 2) Regulations 2015 (S.I. 2015/478), regs. 1(4), 17

[F10 148C.— (1) This regulation applies in relation to a person (P)—

(a) who is liable under section 11(2) of the Act, or entitled under section 11(6) of the Act, to pay one or more Class 2 contributions [F11 or is treated, as a result of section 11(5B) of the Act, as having actually paid one or more Class 2 contributions,] in respect of a contribution week in a relevant tax year;

(b) who does not carry on a trade, profession or vocation the profits of which (if any) would be chargeable to income tax under Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 for the relevant tax year; and

(c) in respect of whom regulation 148B applies in relation to the relevant tax year.

(2) Section 11(5) of the Act (Class 2 contributions payable in the same manner as Class 4 contributions) does not apply in relation to the Class 2 contributions (if it would otherwise do so).

(3) Section 12 of the Act (late paid Class 2 contributions) is to apply to the Class 2 contributions that P is liable to pay under section 11(2) of the Act as it applies to contributions paid under section 11(6) of the Act.

(4) If P is liable to pay the Class 2 contributions, P must, no later than 31st January next following the end of the relevant tax year—

(a) pay the Class 2 contributions for which P is liable in respect of any contribution weeks in that tax year; and

(b) make a return in such form as may be approved by HMRC.

(5) If P is entitled to pay a Class 2 contribution under section 11(6) of the Act, P may—

(a) make a return in such form as may be approved by HMRC; and

(b) pay the contribution.

[F12 (5A) If P is treated (as a result of section 11(5B) of the Act) as having actually paid a Class 2 contribution, P must, no later than 31st January next following the end of the relevant tax year, make a return in such form as may be approved by HMRC.]

(6) P must keep such records as may be necessary for the purposes of calculating P’s—

(a) relevant profits from the employment for the purposes of section 11(2) of the Act; and

(b) liability or, as the case may be, entitlement to pay a Class 2 contribution, [F13 or entitlement to be treated as having actually paid such a contribution,]

for the relevant tax year and preserve such records until the sixth anniversary of the 31st January next following the end of the relevant tax year.]

Textual Amendments

F10 Reg. 148C inserted (6.4.2015) by The Social Security (Miscellaneous Amendments No. 2) Regulations 2015 (S.I. 2015/478), regs. 1(4), 18

F11 Words in reg. 148C(1)(a) inserted (14.12.2022 with effect from 6.4.2022) by The Social Security (Class 2 National Insurance Contributions Increase of Threshold) Regulations 2022 (S.I. 2022/1329), regs. 1, 10(2)

F12 Reg. 148C(5A) inserted (14.12.2022 with effect from 6.4.2022) by The Social Security (Class 2 National Insurance Contributions Increase of Threshold) Regulations 2022 (S.I. 2022/1329), regs. 1, 10(3)

F13 Words in reg. 148C(6)(b) inserted (14.12.2022 with effect from 6.4.2022) by The Social Security (Class 2 National Insurance Contributions Increase of Threshold) Regulations 2022 (S.I. 2022/1329), regs. 1, 10(4)