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Switzerland now classes as an EU state for Social Security purposes

Switzerland now classes as an EU state for Social Security purposes

It’s possible that accountants for contractors might have some clients who work in Switzerland. They should therefore be aware that HMRC now treats Switzerland as an EU member state for the purposes of Social Security.

The new rules came into force on the first of April 2012 and apply to anyone who goes to work or live in Switzerland. It will depend on your employment circumstances whether you continue paying UK NICs or pay the Swiss equivalent instead. Swiss employers with UK based staff might also have to pay UK employers’ national insurance contributions.

The new regulations also apply to freelancers and other self-employed people who move between Switzerland and the UK.

Transitional arrangements have been put in place to deal with circumstances where the new rules change the nation that affected individuals pay their contributions to. Under these arrangements it may be possible to continue paying as you were until your circumstances change.

HMRC has advised people who are unsure of how these new regulations will affect them to contact it for advice.

The new rules are similar to those introduced in May 2010 to cover workers who move around the EEA. The UK had originally opted out of the Treaty of Amsterdam and said it would not apply the rules to people coming from or going to Iceland, Norway, Switzerland and Liechtenstein.

The Revenue’s website will soon be updated to reflect the new guidance but in the interim people can phone the NIC&EO International Caseworker helpline on 0845 915 4811 if they need advice.

© 2012 All rights reserved. Reproduction in whole or in part without permission is prohibited.

Image: Biel/Bienne, Switzerland by nikoretro

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