The UK’s HMRC has confirmed that the UK and Gibraltar have completed all statutory and constitutional requirements to implement a new agreement on social coordination with Gibraltar, and that the two jurisdictions have notified each other that these procedures have been completed. The agreement is implemented effective 1 June 2024.
The agreement, referred to as the Social Security (Gibraltar) Order 2024, simply replaces the EU law that was retained following the UK’s exit from the EU. It protects the social security position of cross-border workers, ensuring that employees and their employers, as well as the self-employed, are liable to pay social security contributions only in one country at a time. It also continues to ensure access to an uprated UK state pension.
Given that the new agreement simply replaces the retained EU law, all current guidance continues to apply. UK Individuals working in Gibraltar should continue to follow HMRC’s guidance.
Current guidance provides that individuals coming to work in the UK from Gibraltar will only need to pay social security contributions in Gibraltar if they have been issued a certificate of coverage (also referred to as a PDA1). The certificate can be used as evidence that the individual does not need to pay National Insurance in the UK.
Purni Makh
BDO in United Kingdom
The agreement, referred to as the Social Security (Gibraltar) Order 2024, simply replaces the EU law that was retained following the UK’s exit from the EU. It protects the social security position of cross-border workers, ensuring that employees and their employers, as well as the self-employed, are liable to pay social security contributions only in one country at a time. It also continues to ensure access to an uprated UK state pension.
Given that the new agreement simply replaces the retained EU law, all current guidance continues to apply. UK Individuals working in Gibraltar should continue to follow HMRC’s guidance.
Current guidance provides that individuals coming to work in the UK from Gibraltar will only need to pay social security contributions in Gibraltar if they have been issued a certificate of coverage (also referred to as a PDA1). The certificate can be used as evidence that the individual does not need to pay National Insurance in the UK.
Purni Makh
BDO in United Kingdom