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Introduction |
An agreement between the United States and the
United Kingdom (U.K.) improves Social Security protection for people who
work or have worked in both countries. It helps many people who,
without the agreement, would not be eligible for monthly retirement, disability
or survivors benefits under the Social Security system of one or both
countries. It also helps many people who would otherwise have to
pay Social Security taxes to both countries on the same earnings.
The provisions of the agreement that eliminate double Social Security
taxation became effective January 1, 1985. The provisions which
permit persons who meet certain conditions to use their work in both countries
to qualify for benefits became effective January 1, 1988. For purposes
of the agreement, references to the United Kingdom include England; Scotland;
Wales; Northern Ireland; the Isle of Man; and the Channel Islands of Jersey,
Guernsey, Alderney, Herm, and Jethou.
The agreement covers Social Security taxes (including the U.S. Medicare
portion) and Social Security retirement, disability and survivors insurance
benefits. It doesn't cover benefits under the U.S. Medicare program
or the Supplemental Security Income (SSI) program.
This document covers highlights of the agreement and explains how it may
help you while you work and when you apply for
benefits.
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The agreement may help you, your
family and your employer
- While you work––If your work is
covered by both the U.S. and the U.K. Social Security systems, you (and
your employer, if you are employed) would normally have to pay Social
Security taxes to both countries for the same work. However, the
agreement eliminates this double coverage, so you pay taxes to only
one system (see the section on "Coverage and Social Security taxes").
- When you apply for benefits––You may
have some Social Security credits in both the United States and the
United Kingdom but not enough to be eligible in one country or the
other. The agreement makes it easier to qualify for benefits
by letting you add together your Social Security credits in both countries.
For more details, see the section on "Monthly benefits".
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Coverage and Social Security taxes |
Before the agreement, employees, employers and
self-employed persons could, under certain circumstances, be required
to pay Social Security taxes to both the United States and the United
Kingdom for the same work.
Under the agreement, if you work as an employee in the United States,
you normally will be covered by the United States, and you and your employer
will pay Social Security taxes only to the United States. If
you work as an employee in the United Kingdom, you normally will be covered
by the United Kingdom, and you and your employer pay Social Security taxes
only to the United Kingdom.
On the other hand, if your employer sends you from one country to work
for that employer or an affiliate in the other country for five years
or less, you will continue to be covered by your home country and you
will be exempt from coverage in the other country. For example, if a U.S.
company sends an employee to work for that employer or an affiliate in
the United Kingdom for no more than five years, the employer and the employee
will continue to pay only U.S. Social Security taxes and will not have
to pay in the United Kingdom.
If you are self-employed and reside in the United States or the United
Kingdom, you generally will be covered and taxed only by the country where
you reside.
People working on the U.K. continental shelf are considered to be working
in the United Kingdom.
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Summary of agreement rules
The following table shows whether your work is covered
under the U.S. or U.K. Social Security system. If you are covered under
U.S. Social Security, you and your employer (if you are an employee) must
pay U.S. Social Security taxes. If you are covered under the U.K. system,
you and your employer (if you are an employee) must pay U.K. Social Security
taxes."Certificate of coverage"
section explains how to get a form
from the country where you are covered that will prove you are exempt in
the other country.
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Your work
status |
Coverage and taxes |
You are working in the U.K.:
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For a U.S. employer who: |
- Sent you to work in the U.K. for five years or less
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U.S.
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- Sent you to work in the U.K. for more than five years
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U.K. |
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U.K. |
For
a non-U.S. employer |
U.K. |
For the U.S. government and you are a: |
U.S. national |
U.S. (either Social Security or federal
retirement program) |
U.K. national |
U.K. |
You are working in the U.S.: |
For a U.K. employer who: |
- Sent you
to work in the U.S. for five years or less
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U.K. |
- Sent you
to work in the U.S. for more than five years
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U.S.
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U.S.
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For a non-U.K. employer
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U.S.
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For the U.K. government
and you are a: |
U.K. national |
U.K. |
U.S. national |
U.S. |
You
are self-employed and you: |
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U.S.
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U.K. |
If
this table does not seem to describe your situation and you are:
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Write to the U.S. address in "Certificates for employees" section for further information. |
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Write to the U.K. address in "For more information" section for further information. |
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NOTE: As the table indicates, a
U.S. worker employed in the United Kingdom can be covered by U.S. Social
Security only if he or she works for a U.S. employer. A U.S. employer
includes a corporation organized under the laws of the United States or
any state, a partnership if at least two-thirds of the partners are U.S.
residents, an individual who is a resident of the U.S. or a trust if all
the trustees are U.S. residents. The term also includes a foreign affiliate
of a U.S. employer if the U.S. employer has entered into an agreement with
the Internal Revenue Service under section 3121(l) of the Internal Revenue
Code to pay Social Security taxes for U.S. citizens and residents employed
by the affiliate.
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Certificate of coverage |
A certificate of coverage issued by one country serves as proof of
exemption from Social Security taxes on the same earnings in the other
country.
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Certificates for employees
To establish an exemption from compulsory coverage and taxes under the
U.K. system, your employer must request a certificate of coverage (form
US/UK 1) from the U.S. at this address:
Social Security Administration
Office of International Programs
P.O. Box 17741
Baltimore, Maryland 21235-7741
U.S.A.
If preferred, the request may be sent by FAX to (410) 966-1861. Please
note this FAX number should only be used to request certificates of coverage.
No special form is required to request a certificate but the request
must be in writing and provide the following information:
- Full name of worker;
- Date and place of birth;
- Citizenship;
- Country of worker's permanent residence;
- U.S. Social Security number;
- Date of hire;
- Country of hire;
- Name and address of the employer in the U.S. and the U.K.; and
- Date of transfer and anticipated date of return.
In addition, your employer must indicate if you remain an employee of
the U.S. company while working in the United Kingdom or if you become
an employee of the U.S. company's affiliate in the United Kingdom. If
you become an employee of an affiliate, your employer must indicate if
the U.S. company has an agreement with the Internal Revenue Service under
section 3121(l) of the Internal Revenue Code to pay U.S. Social Security
taxes for all U.S. citizens and residents employed by the affiliate and,
if yes, the effective date of the agreement.
Your employer can also request a certificate of U.S. coverage for you
over the Internet using a special online request form available at www.socialsecurity.gov/coc. Only an employer can
use the online form to request a certificate of coverage. A self-employed
person must submit a request by mail or fax.
To establish your exemption from coverage under the U.S. Social Security
system, your employer in the United Kingdom must request a certificate
of coverage (form UK/US 1) from the United Kingdom at this address:
Inland Revenue
National Insurance Contributions Office
Center for Non-Residents
Rooms BP 1301/BP 1302
Bamburgh House
Benton Park View
Longbenton
Newcastle upon Tyne NE98 1ZZ
ENGLAND
The same information required for a certificate of coverage from the
United States is needed to get a certificate of coverage from the United
Kingdom except that you must show your U.K. National Insurance number
rather than your U.S. Social Security number.
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Certificates for self-employed
people
If you are self-employed and would normally
have to pay Social Security taxes to both the U.S. and the U.K. systems,
you can establish your exemption from one of the taxes by writing to:
Be sure to provide the following information in your letter:
- Full name;
- Date and place of birth;
- Citizenship;
- Country of permanent residence;
- U.S. and/or U.K. Social Security number;
- Nature of self-employment activity;
- Dates the activity was or will be performed; and
- Name and address of your trade or business in both countries.
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Effective date of coverage
exemption
The certificate of coverage you receive from
one country will show the effective date of your exemption from paying
Social Security taxes in the other country. Generally, this
will be the date you began working in the other country.
Certificates of coverage issued by the United Kingdom should be retained
by the employer in the United States in case of an audit by the Internal
Revenue Service (IRS). No copy should be sent to the IRS unless
specifically requested by IRS. However, a self-employed person
must attach a photocopy of the certificate to his or her income
tax return each year as proof of the U.S. exemption.
Copies of certificates of coverage issued by the United States will be
provided for both the employee and employer. It will be their
responsibility to present the certificate to the U.K. authorities when
requested to do so. To avoid any difficulties, your employer
(or you, if you are self-employed) should request a certificate as early
as possible, preferably before your work in the other country begins.
If you or your employer request a certificate of coverage, you should
read the Privacy Act and Paperwork Reduction Act statements below.
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Authority to collect information for a certificate
of coverage
Privacy Act
The Privacy Act requires us to notify you that we are authorized
to collect this information by section 233 of the Social Security
Act. While it is not mandatory for you to furnish the information
to the Social Security Administration (SSA), a certificate of
coverage cannot be issued unless a request has been received.
The information is needed to enable SSA to determine if work should
be covered only under the U.S. Social Security system in accordance
with an international agreement. Without the certificate, work
may be subject to taxation under both the U.S. and the foreign
Social Security systems.
Paperwork Reduction Act Notice
This information collection meets the clearance requirements
of 44 U.S.C. section 3507, as amended by section 2 of the Paperwork
Reduction Act of 1995. You are not required to answer these questions
unless we display a valid Office of Management and Budget (OMB)
control number. We estimate that it will take you about 30 minutes
to read the instructions, gather the necessary facts, and write
down the information to request a certificate of coverage.
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Monthly benefits |
The following table shows the various types of
Social Security benefits payable under the U.S. and U.K. Social Security
systems and briefly describes the eligibility requirements that normally
apply for each type of benefit. If you don’t meet the normal requirements
for these benefits, the agreement may help you to qualify (see "How benefits can be paid" section).
This table is only a general guide. You can get more specific information
about U.S. benefits here on our web site, at any U.S. Social Security
office or by calling our toll-free number at 1-800-772-1213. You
can get more detailed information about the U.K. system by writing to
the U.K. address in "For more information" section of this document
or by visiting the web site of the U.K.
social security system.
Under U.S. Social Security, you may earn up to four credits each year
depending on the amount of your covered earnings. For example,
in 2005, you get one credit for each $920 of your covered annual earnings
up to a maximum of four credits for the year. Under the U.K.
system, credits are measured in weeks. To simplify the information
in the table, requirements are shown in years of credits.
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Monthly benefits and eligibility requirements
Retirement or old-age benefits |
United States |
United
Kingdom
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Worker-Full
benefit at full retirement age,
or reduced benefit as early as age 62. Required work credits
range from one and one-half years to 10 years (10 years if 62 in 1991
or later). |
Worker-Full benefit
at age 65 for men with 44 years of contributions, or reduced benefit
with 11 years.
Full benefit at age 60 (increasing to age 65 between 2010 and 2020)
for women with 40 years of contributions, or reduced benefit with
10 years. |
Disability benefits |
United States |
United Kingdom |
Worker-Under
full retirement age can
get benefit if unable to do any substantial gainful work for at least
a year. One and one-half to 10 years credit required depending on
age at date of onset. Some recent credits also needed unless worker
is blind. |
Worker-A contributor
who has not retired can get an invalidity benefit if he or she has
been incapable of working for 52 weeks during which time he or she
was entitled to statutory sickness pay or short-term incapacity benefits.
The contributor must have paid a required number of contributions
in a recent tax year. |
Family benefits to
dependents of retired or disabled people |
United States |
United Kingdom |
Wife-Full
benefit at full retirement age
or at any age if caring for the worker's entitled child under 16 (or
disabled before age 22). Reduced benefit as early as age 62 if not
caring for a child. |
Wife-Retirement
pension at age 60 based on husband's contributions if she doesn't
qualify for a higher pension based on her own contributions. If under
age 60, an increased pension is paid to the husband. An increased
invalidity benefit is payable for a wife in certain circumstances. |
Husband-Same
as wife. |
Husband-Wife
cannot claim extra retirement pension for husband, but can claim increased
invalidity benefit in certain circumstances. |
Divorced Wife-Full
benefit at full retirement age.
Reduced benefit as early as age 62. Must be unmarried and have been
married to worker for at least 10 years. |
Divorced Wife-Retirement
pension payable at age 60 based on ex-husband's contributions provided
she has also contributed to the U.K. system. Remarriage after
age 60 will not affect entitlement. |
Divorced Husband-Same
as divorced wife. |
Divorced Husband-At
age 65; other requirements same as divorced wife. |
Children-If
unmarried, up to age 18 (age 19 if in an elementary or secondary school
full time) or any age if disabled before age 22. |
Children-Up
to age 16 (age 19 for certain students). |
Survivors
benefits |
United States |
United Kingdom |
Widow-Full
benefit at full retirement age
or at any age if caring for the deceased's entitled child under 16
(or disabled before age 22). Reduced benefit as early as age 60 (or
50 if disabled) if not caring for child. Benefits may be continued
if remarriage occurs after age 60 (or age 50 if disabled). |
Widow-Full
benefit at age 55 or at any age if caring for a dependent child of
the worker. Reduced benefit as early as age 45. Benefit may
continue if remarriage occurs after age 60. |
Widower-Same
as widow. |
Widower-Benefit
payable at age 65, if widowed before age 65 and also contributed to
the U.K. system. |
Divorced Widow
or widower-Same as widow or widower if marriage lasted at
least 10 years. |
Divorced Widow
or widower-No provision. |
Children-Same
as for children of retired or disabled worker. |
Children-Same
as for children of retired or disabled contributors. |
Lump-Sum Death
Benefit-A one-time payment not to exceed $255 payable on
the death of an insured worker. |
Lump-Sum Death
Payment-No provision. |
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How benefits
can be paid If you have Social Security credits in both
the United States and the United Kingdom, you may be eligible for benefits
from one or both countries. If you meet all the basic requirements
under one country's system, you will get a regular benefit from that country. If
you don't meet the basic requirements, the agreement may help you qualify
for a benefit as explained below.
- Benefits from the U.S—If you do not have enough work credits under
the U.S. system to qualify for regular benefits, you may be able to qualify
for a partial benefit from the United States based on both U.S. and U.K.
credits. However, to be eligible to have your U.K. credits
counted, you must have earned at least six credits (generally one and
one-half years of work) under the U.S. system. If you already
have enough credits under the U.S. system to qualify for a benefit, the
U.S. cannot count your U.K. credits.
- Benefits from the U.K.—The United Kingdom provides benefits through
a two-tier program:
- The first tier, called the basic pension, is payable to workers who
meet a minimum length of work requirement. Under the agreement,
if you do not have enough credits under the U.K. system, your U.S. credits
can be counted. To be eligible to have your U.S. and U.K.
credits counted, you must have at least one year of coverage credited
under the U.K. system.
- The second tier is called the additional pension and is based on both
the length of work under the U.K. system and the amount of earnings. A
person can qualify for the additional pension with as little as one
year of U.K. coverage. Therefore, credits under the U.S.
system will not be considered when determining eligibility
for the additional pension.
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How credits get counted
You don't have to do anything to have your credits
in one country counted by the other country. If we need to
count your credits under the U.K. system to help you qualify for a U.S.
benefit, we will get a copy of your U.K. record directly from the United
Kingdom when you apply for benefits. If U.K. officials need
to count your U.S. credits to help you qualify for a U.K. benefit, they
will get a copy of your U.S. record directly from the Social Security
Administration when you apply for the U.K. benefit.
Although each country may count your credits in the other country, your
credits are not actually transferred from one country to the other.
They remain on your record in the country where you earned them and can
also be used to qualify for benefits there.
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Computation of U.S. benefit
under the agreement
When a U.S. benefit becomes payable as a result
of counting both U.S. and U.K. Social Security credits, an initial benefit
is determined based on your U.S. earnings as if your entire career had
been completed under the U.S. system. This initial benefit
is then reduced to reflect the fact that U.K. credits helped to make the
benefit payable. The amount of the reduction will depend on
the number of U.S. credits: the more U.S. credits, the smaller the reduction;
and the fewer U.S credits, the larger the reduction.
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A U.K. pension may affect your U.S. benefit |
If you qualify for Social Security benefits from
both the United States and the United Kingdom and didn’t need the
agreement to qualify for either benefit, the amount of your U.S. benefit
may be reduced. This is a result of a provision in U.S. law that can affect
the way your benefit is figured if you also receive a pension based on
work that was not covered by U.S. Social Security. For more
information, call our toll-free number, 1-800-772-1213,
and get the publication, Windfall Elimination Provision (Publication
No. 05-10045). If you are outside the United States, you may write to
us at the address in "For more information" section.
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What you need to know about Medicare
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Medicare is the U.S. national health insurance
system for people age 65 or older or who are disabled. Medicare has two
parts: hospital insurance (also called "Part A" Medicare) and medical
insurance (called "Part B" Medicare). You are eligible for free hospital
insurance at age 65 if you have worked long enough under U.S. Social Security
to qualify for a retirement benefit. People born in 1929 or later need
40 credits (about 10 years of covered work) to qualify for retirement
benefits.
Although the agreement between the United States and the United Kingdom
allows the Social Security Administration to count your U.K. credits to
help you qualify for U.S. retirement, disability or survivor benefits,
the agreement doesn’t cover Medicare benefits. As a result, we cannot
count your credits in the United Kingdom to establish entitlement to free
Medicare hospital insurance.
For more information about Medicare, call our toll-free number,
1-800-772-1213, and ask for the publication, Medicare
(Publication No. 05-10043) or visit Medicare’s website at www.medicare.gov.
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Claims for benefits
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If you live in the United States and wish to
apply for U.S. or U.K. benefits:
- Visit or write any U.S. Social Security office, or
- Phone our toll-free number, 1-800-772-1213, 7 a.m.
to 7 p.m. any business day. People who are deaf or hard of
hearing may call our toll-free TTY number, 1-800-325-0778.
You can apply for U.K. benefits at any U.S. Social Security office by
completing application form SSA-2490.
If you live in the United Kingdom and wish to apply for benefits, contact:
- The Federal Benefits Unit at the U.S. Embassy in London (phone 207-499-9000)
to file for U.S. benefits; or
- Any U.K. Social Security office to file for U.K. benefits.
You can apply with one country and ask to have your application considered
as a claim for benefits from the other country. Information from
your application will then be sent to the other country. Each
country will process the claim under its own laws--counting credits from
the other country when appropriate--and notify you of its decision.
If you haven't applied for benefits before, you may need to provide certain
information and documents when you apply. These include the
worker's U.S. and U.K. Social Security numbers, proof of age for all claimants,
evidence of the worker's U.S. earnings in the past 24 months, and information
about the worker's coverage under the U.K. system. You may
wish to call the Social Security office before you go there to see if
any other information is needed.
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Payment of benefits
Each country pays its own benefit. U.S.
payments are made by the U.S. Department of Treasury each month and cover
benefits for the preceding month.
Payments under the U.K. system may be paid at different times and for
various periods of time depending upon the amount of the payment and the
wishes of the recipient. For more information, contact the
appropriate U.K. authorities as shown in "For more information" section of this document.
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Absence from U.S. territory
Normally, persons who are not U.S. citizens
may receive U.S. Social Security benefits while outside the U.S. only
if they meet certain requirements. Under the agreement, however,
you may receive benefits as long as you reside in the United Kingdom regardless
of your nationality. If you are not a U.S. or U.K. citizen
and live in another country, you may not be able to receive benefits. The
restrictions on U.S. benefits are explained in the publication, Your
Payments While You Are Outside The United States (Publication
No. 05-10137).
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Appeals
If you disagree with the decision made on your
claim for benefits under the agreement, contact any U.K. or U.S. Social
Security office. The people there can tell you what you need
to do to appeal the decision.
The U.K. Social Security authorities will review your appeal if it affects
your rights under the U.K. system, while U.S. Social Security authorities
will review your appeal if it affects your rights under the U.S. system. Since
each country's decisions are made independently of the other, a decision
by one country on a particular issue may not always conform with the decision
made by the other country on the same issue.
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For more information |
To file a claim for U.S. or U.K. benefits under
the agreement, follow the instructions in "Claims for benefits" section.
To find out more about U.S. Social Security benefits or for information
about a claim for benefits, contact any U.S. Social Security office or
call our toll-free number at 1-800-772-1213. If you
live outside the United States, write to:
Social Security Administration
OIO--Totalization
P.O. Box 17769
Baltimore, Maryland 21235-7769
U.S.A.
For information about the United Kingdom's Social Security programs:
If you don't wish to file a claim for benefits but would like more information
about the agreement, write to:
Social Security Administration
Office of International Programs
P.O. Box 17741
Baltimore, Maryland 21235-7741
U.S.A.
For additional information visit our website: www.socialsecurity.gov/international.
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