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E8.722 International aspects of NIC—bilateral agreements—overview

There is no general relief for UK contribution purposes for contributions payable under the social security system of another country. However, the UK has agreements with a number of other countries providing for bilateral coordination of social security competence¹. There are comprehensive provisions applying in relation to member states of the European Union (see E8.726).

Unlike double taxation agreements, social security agreements do not give relief for contributions otherwise chargeable by giving credit for contributions paid elsewhere. Instead, the agreements are aimed at coordination of contribution and benefit rules so that only one state, known as the competent state, is responsible for the individual's social security provision at any one time. Because they simply coordinate coverage, they do not impose a liability which does not exist under the relevant national law: the competent state levies contributions and provides benefits under its own laws, while the other state or states have no rights or obligations, other than to provide information about past coverage or family circumstances.

The UK also has