Global Daily Tax News, UK, Isle Of Man Rewrite Social Security Agreement, (May 21, 2026)

The UK and the Isle of Man have agreed a new social security agreement, to modernize the provisions of its existing pact dating back to 1977.

The agreement determines where workers and employers pay their National Insurance contributions, to ensure t ...

The UK and the Isle of Man have agreed a new social security agreement, to modernize the provisions of its existing pact dating back to 1977.

The agreement determines where workers and employers pay their National Insurance contributions, to ensure that those moving between the UK and the Isle of Man pay their National Insurance contributions in only one territory at a time.

Generally, the agreement provides that social security payments will be payable in the territory where the work takes place, regardless of the location of the employer.

An exception is provided for workers issued with a certificate of coverage who will be liable to National Insurance contributions in one territory while working in the other.

This arrangement will be possible in the following circumstances:

The worker is employed in one territory (territory A) by an employer who has a place of business in territory A, and they are going to work temporarily in the other territory (territory B) for up to three years – the employee's employer must have either sent, or agreed, for them to work temporarily in territory B;
The worker is self-employed in one territory (territory A) and going to carry out a similar activity temporarily in the other territory (territory B), for up to three years working in the UK and the Isle of Man at the same time;
The worker must be resident in one territory and working on board a vessel at sea with a UK or Isle of Man flag;
The worker must be resident in one territory and working as a flight or cabin crew member whose home base is in the other territory; or
The worker is a government employee working for the government of one territory and working for the same government in the other territory.

The UK Government said the agreement provides for the same treatment of workers as its agreements with Guernsey and Jersey, as well as those concluded with other countries.

The Agreement will come into effect on the first day of the month after the UK and the Isle of Man have exchanged written confirmation that they have complied with their domestic statutory and constitutional requirements. The Agreement will have effect in relation to the tax year beginning on or after April 6 next following the date on which this Agreement enters into force.

Global Daily Tax News, UK, Isle Of Man Rewrite Social Security Agreement, (May 21, 2026)

The UK and the Isle of Man have agreed a new social security agreement, to modernize the provisions of its existing pact dating back to 1977.

The agreement determines where workers and employers pay their National Insurance contributions, to ensure t ...

The UK and the Isle of Man have agreed a new social security agreement, to modernize the provisions of its existing pact dating back to 1977.

Generally, the agreement provides that social security payments will be payable in the territory where the work takes place, regardless of the location of the employer.

An exception is provided for workers issued with a certificate of coverage who will be liable to National Insurance contributions in one territory while working in the other.

This arrangement will be possible in the following circumstances:

The worker is employed in one territory (territory A) by an employer who has a place of business in territory A, and they are going to work temporarily in the other territory (territory B) for up to three years – the employee's employer must have either sent, or agreed, for them to work temporarily in territory B;
The worker is self-employed in one territory (territory A) and going to carry out a similar activity temporarily in the other territory (territory B), for up to three years working in the UK and the Isle of Man at the same time;
The worker must be resident in one territory and working on board a vessel at sea with a UK or Isle of Man flag;
The worker must be resident in one territory and working as a flight or cabin crew member whose home base is in the other territory; or
The worker is a government employee working for the government of one territory and working for the same government in the other territory.

The UK Government said the agreement provides for the same treatment of workers as its agreements with Guernsey and Jersey, as well as those concluded with other countries.