Totalization Agreement with United Kingdom
Contents |
|---|
| Introduction |
| Eliminating dual coverage for self-employment |
| United Kingdom certificates for employees and self-employed workers |
| Monthly benefits |
| How benefits can be paid |
| Claims for benefits |
| Payment of benefits |
| For more information about United Kingdom's social security programs |
Introduction
For United Kingdom, the Agreement covers old-age, survivors, disability benefits, cash sickness benefits, maternity benefits, death grants, unemployment insurance, and benefits under the Industrial Injuries Scheme.
Note: U.K. disability benefits, including Universal Credit, Personal Independence Payment, Employment and Support Allowance (ESA), require residence in the U.K. ESA replaced the Incapacity Benefit and Income Support effective October 27, 2008. Individuals who received Incapacity Benefit and Income Support prior to October 27, 2008, will continue to receive these benefits as long as they continue to satisfy the entitlement conditions. The Industrial Injuries Disabled Benefit payments require that the work accident or event that caused a worker’s illness occurred in England, Scotland or Wales.
Return to Totalization Agreements overview
Eliminating dual coverage for self-employment
- Self-employed workers who reside in the United States are assigned U.S. coverage.
- Self-employed workers who reside in the United Kingdom are assigned U.K. coverage.
Return to Totalization Agreements overview
United Kingdom certificates for employees and self-employed workers
Employers and self-employed workers must request a certificate of coverage to establish an exemption from U.S. Social Security contributions.
Applications can be made online by visiting this link: Check how to apply for a certificate - GOV.UK (www.tax.service.gov.uk)
Please mail your request to:
HM Revenue & Customs
PT Operations North East England
BX9 1AN
United Kingdom
Please provide the following information:
- Worker's full name (including maiden name);
- Worker's date of birth;
- Worker's place of birth;
- Worker's country of citizenship;
- Worker's country of permanent residence;
- Worker’s U.S. social security number;
- Worker's U.K. social security number, if applicable;
- Date of hire, if employed;
- Country of hire, if employed;
- Nature of self-employment activity, if applicable;
- Name and address of the employer in the United States and the Agreement country (if self-employed, address of trade or business in both countries); and
- Date of transfer and anticipated date of return of employment or self-employment in the Agreement country.
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.
U.S. employers should retain certificates of coverage in case of an audit by the IRS. Employers should not send a copy to the IRS unless the IRS specifically requests the certificate of coverage.
Self-employed workers should attach a copy of the certificate of coverage to their U.S. tax return every year as proof of the exemption.
Return to Totalization Agreements overview
Monthly benefits
Under the U.S. Social Security system, you may earn up to four credits each year depending on the amount of your covered earnings. For example, in 2022, you receive one credit for each $1,410 of your covered annual earnings up to a maximum of four credits per year. For more information, see How You Earn Credits (Publication No. 05-10072).
Under the U.K. system, credits are measured in weeks. To simplify the information in the table, requirements are shown in years of credits.
| Retirement or old-age benefits | |
United States | United Kingdom |
Worker—Full benefit at full retirement age.* Reduced benefit as early as age 62. Required work credits range from one and one-half to 10 years (10 years if age 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 for women (increasing to age 65 between 2010 and 2020) with 40 years of contributions, or reduced benefit with 10 years. |
*Full retirement age is 66 for people born in 1943-1954 and will gradually increase to age 67 for people born in 1960 or later.
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 needed, depending on age at date of onset. Some recent work credits also needed unless worker is blind. | Worker—A contributor who has not retired can get an invalidity benefit if the contributor has been incapable of working for 52 weeks during which time the contributor 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. |
*Full retirement age is 66 for people born in 1943-1954 and will gradually increase to age 67 for people born in 1960 or later.
| Family benefits to dependents of retired or disabled people | |
United States | United Kingdom |
Spouse—Full benefit at full retirement age* or at any age if caring for the worker’s entitled child under age 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 spouse’s contributions if the wife does not qualify for a higher pension based on their own contributions. If under age 60, an increased pension is paid to the spouse. An increased invalidity benefit is payable for a spouse in certain circ*mstances. |
Husband—Husband cannot claim extra retirement pension for spouse, but can claim increased invalidity benefit in certain circ*mstances. | |
Divorced spouse—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-spouse’s contributions provided the divorced wife has also contributed to the U.K. system. Remarriage after age 60 will not affect entitlement. |
Divorced spouse— Same as divorced spouse. | 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).] |
*Full retirement age is 66 for people born in 1943-1954 and will gradually increase to age 67 for people born in 1960 or later.
| Survivors benefits | |
United States | United Kingdom |
Surviving Spouse—Full benefit at full retirement age* or at any age if caring for the deceased’s entitled child under age 16 (or disabled before age 22). Reduced benefit as early as age 60 (or age 50 if disabled) if not caring for a 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—Benefit payable at age 65, if widowed before age 65 and also contributed to the U.K. system. | |
Divorced Surviving Spouse— Same as surviving spouse if marriage lasted at least 10 years. | Divorced Surviving Spouse—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 benefit—No provision. |
*Full retirement age is 66 for people born in 1943-1954 and will gradually increase to age 67 for people born in 1960 or later.
Return to Totalization Agreements overview
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 do not meet the basic requirements, the Agreement may help you qualify for a benefit as explained below.
- Benefits from the United States - 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 United States and United Kingdom 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 United States cannot count your U.K. credits.
- Benefits from the United Kingdom - 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 United States and United Kingdom 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.
Return to Totalization Agreements overview
Claims for benefits
If you live in the United States and wish to apply for United States or United Kingdom benefits:
- Visit or write any U.S. Social Security office.
- Phone our toll-free number, 1-800-772-1213, 8 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 an application form SSA-2490-BK (Application for Benefits Under a U.S. International Social Security Agreement).
If you live in the United Kingdom and wish to apply for United States or United Kingdom benefits, contact:
- The Federal Benefits Unit at the U.S. Embassy in London (phone 207-499-9000) to file for U.S. benefits.
- Any U.K. social security office to file for U.K. benefits.
If you live outside the United States and wish to apply for benefits, contact:
Federal Benefits Unit
United States Embassy
33 Nine Elms Lane
LONDON
SW11 7US
You can apply with one country and ask to have your application considered as a claim for benefits from 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 have not applied for benefits before, you may need to provide certain information and documents when you apply.
These may include:
- Worker’s United States Social Security number.
- Worker’s United Kingdom social security number.
- Worker’s proof of age for all claimants.
- Evidence of the worker’s U.S. earnings in the past 24 months.
- Information about the worker’s coverage under the United Kingdom system.
You may wish to call the social security office before you go there to see if you need any other information.
Return to Totalization Agreements overview
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 United Kingdom authorities at the address in the section titled, “For more information.”
Return to Totalization Agreements overview
For more information about United Kingdom's social security programs
If you live in the United Kingdom, contact your nearest office of the Department for Work and Pensions, or visit the United Kingdom’s Department for Work & Pensions website at Department for Work and Pensions - GOV.UK (www.gov.uk).
If you live outside the United Kingdom, and want information about benefits, contact:
Department for Work and Pensions
Pensions and Overseas Directorate
Tyneview Park
Whitley Road Benton
NE98 1BA
ENGLAND
If you live in the UK but work abroad and require further information about your National Insurance obligations, please visit this link National Insurance if you work abroad - GOV.UK (www.gov.uk) or write to:
HM Revenue & Customs
PT Operations North East England
BX9 1AN
United Kingdom
Return to Totalization Agreements overview
