HMRC clarification: Operation of the multi-state worker social security coordination rules

04 April 2023

HM Revenue and Customs (HMRC) has been approached about a technical question relating to the operation of the multi-state worker social security coordination rules.

HMRC does not currently have technical guidance published on this question so HMRC has provided its view on the understanding that it has shared with the Expat forum, which the CIPP sits on.  Please note this is HMRC’s International Social Security Policy team's view at this time and may be subject to change

Question: How do the Social Security Coordination applicable legislation rules treat a situation where an individual is working across three countries, in two countries this is employed activity and in a third country this is self-employed activity?

Article SSC.12 sets out the rules to determine which legislation applies where an individual who is in scope of the Social Security Coordination (SSC) Protocol to the UK-EU Trade and Cooperation Agreement is normally working in two or more States. Where a person normally carries out an employed activity and a self-employed activity in two or more States, the worker shall be subject to the legislation of the State in which they carry out their activity as an employed person. Where the worker carries out an employed activity in two or more States, when considering whether the worker is carrying out a substantial activity in their State of residence HMRC would disregard the self-employed activity. The approach is the same as when assessing applicable legislation under EC Regulation 883/2004.

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