Meaning
An official application document is submitted to the United Kingdom tax authority to request a certificate of continuing social security liability while working abroad. The use of HMRC Form CA9107 enables employers to maintain their employees’ UK National Insurance contributions during temporary postings to countries with bilateral agreements. It governs the eligibility assessment for social security coordination between the UK and treaty partner nations.
The scope of this process is limited to qualifying employees sent by their UK-based employer to work in specific non-EEA treaty countries.
Application Process
Submitting the application requires detailed information regarding the duration of the posting and the nature of the work. The employer must submit the form before the employee commences their duties abroad. This early filing prevents administrative delays in the host country.
National Insurance
Retention of UK social security coverage ensures that the employee continues to accrue state pension rights and remains eligible for domestic benefits. When HMRC Form CA9107 is approved, the tax authority issues a certificate of coverage that exempts the employee from paying social security contributions in the host nation. This exemption is crucial because double social security contributions would otherwise inflate the cost of the assignment.
The certificate must be presented to host-country authorities to secure the exemption from local payroll taxes. The exemption is granted for a specific period, typically up to twelve or twenty-four months depending on the treaty.
Employer Obligation
Compliance monitoring is necessary to ensure that the conditions of the certificate are maintained throughout the assignment. The employer must notify the tax authority of any change in the assignment duration or if the employment terminates early. Failure to do so can invalidate the certificate and trigger retroactive liability in the host country.
Maintaining accurate records of these filings is a core risk management requirement.
