# Do I Pay Social Security When I have An S1?



## paulwilko10 (Aug 27, 2021)

Hello all

So, very soon i will be a resident in Spain.
I will be working for a UK company but working from Spain.

From what i understand i would normally be advised to become self employed as i would need to pay in to the Social security.
However, I have an S1 through my Wifes work.

Does that mean i do not have to pay social security and with that no need to go self employed which i really do not want to do anyway?

Many thanks for your help

Paul


----------



## MataMata (Nov 30, 2008)

Which visa are you coming to Spain on?

Normally you cannot benefit from an S1 whilst employed and paying social security.


----------



## paulwilko10 (Aug 27, 2021)

MataMata said:


> Which visa are you coming to Spain on?
> 
> Normally you cannot benefit from an S1 whilst employed and paying social security.


Thanks for your reply

I'm not coming here on a visa, just getting residency. 
I'm UK but my wife is Irish so getting residency on back of that.


----------



## xabiaxica (Jun 23, 2009)

paulwilko10 said:


> Thanks for your reply
> 
> I'm not coming here on a visa, just getting residency.
> I'm UK but my wife is Irish so getting residency on back of that.


As said, if you are working you cannot be beneficiary of an S1. 

You'll be paying tax & insurance in Spain & be entitled to healthcare & eventually a pension in Spain that way.


----------



## kaipa (Aug 3, 2013)

If you are working for a UK company either they will set up Spanish SS for you or you will need to register as self employed and pay the monthly requirements. The S1 is when you are retired and is applicable only to your other half.


----------



## xabiaxica (Jun 23, 2009)

kaipa said:


> If you are working for a UK company either they will set up Spanish SS for you or you will need to register as self employed and pay the monthly requirements. *The S1 is when you are retired and is applicable only to your other half.*


...however if the OP wasn't working he could be beneficiary on his wife's S1.

I am curious as to how she gets it through work, though!


----------



## paulwilko10 (Aug 27, 2021)

My wife is entitled to it because she is cabin crew working 10 days in the UK and I benefit from that and my name will be on the S1.


----------



## xabiaxica (Jun 23, 2009)

paulwilko10 said:


> My wife is entitled to it because she is cabin crew working 10 days in the UK and I benefit from that and my name will be on the S1.


Ah! That makes sense!

However your name won't be on her S1. You would be issued a separate one in your name, but as her beneficiary.


----------



## paulwilko10 (Aug 27, 2021)

xabiaxica said:


> Ah! That makes sense!
> 
> However your name won't be on her S1. You would be issued a separate one in your name, but as her beneficiary.


We've been told I will infact be on hers, time will tell lol. 

Anyway, now you know that how does that effect my original question lol?


----------



## xabiaxica (Jun 23, 2009)

paulwilko10 said:


> We've been told I will infact be on hers, time will tell lol.
> 
> Anyway, now you know that how does that effect my original question lol?


There are quite a few members here who have been beneficiaries of their spouses S1, who I'm sure can clarify exactly how it works.

The fact remains though, that since you will be working, & therefore paying tax & Spanish 'NI', you won't be able to use the S1 in any case.


----------



## Lynn R (Feb 21, 2014)

I am a beneficiary of my husband's S1 (he is a UK state pensioner). When he applied for his own S1 he had to request one for me as well, and I received one separate from his - I am not named on his S1.


----------



## MataMata (Nov 30, 2008)

"We've been told I will infact be on hers"

You've been told wrongly - told by whom?

Your wife will be the beneficiary of a 'workers' S1 but just the same as a pensioner S1's they are individual.

You are entitled to piggy back onto a workers S1 however the holder must request it for you.

That would not apply though if you are yourself working and paying into a (any) social security system.


----------



## paulwilko10 (Aug 27, 2021)

Hi, My wife has been speaking with Hmrc on the phone, after she received her S1 she initially called to say that I hadn't received my S1. They told her I wouldn't get a separate form but would be put down on hers, they noted I had mistakenly been missed off. She chased it up the other day and spoke to a lady who actually has authorisation to process the forms. She did it that morning so we are waiting to receive the updated form. I am working remotely in Spain for a UK company, to preserve my employment rights I really didn't want to go self employed. I just wanted to know if there is any option to get a tax free code in uk so that I can pay my taxes in Spain and use the S1 for my health care here. My uk company do not want to register here. I understand that I will probably have to go Autonomo, but before doing so wanted to see if any other options at all.


----------



## kaipa (Aug 3, 2013)

You have to deal with the Spanish authorities not the UK ones as Spain will now be your centre of residence and fiscal activities. I cant see how you can work in Spain and not be making SS contributions because you are covered by your partner's S1. That would be too good as you could avoid automino payments ( 270 euros a month)


----------



## paulwilko10 (Aug 27, 2021)

kaipa said:


> You have to deal with the Spanish authorities not the UK ones as Spain will now be your centre of residence and fiscal activities. I cant see how you can work in Spain and not be making SS contributions because you are covered by your partner's S1. That would be too good as you could avoid automino payments ( 270 euros a month)


Is that not the whole point of the S1 though? The Spanish are getting their money via the S1?


----------



## xicoalc (Apr 20, 2010)

I agree with others. If you are resident in Spain and more than 6 months a year here then your centre of interests in spain and so you must be either :

1. Self employed in spain or
2. Employed by your uk employer through q spanish branch

You'll certainly be required to submit spanish tax returns every year amd declare you're worldwide income from all sources.

I have heard of zero tax codes in the uk too. Then declaring in spain but i think youd still need to be autónomo. But i have never heard that anyone who is working can be claiming health care through an s1. If you're planning a life in spain it is in your interests to be contributing into the spanish system, not only for you're healthcare but your pension, unemployment and other benefits. Even if you find a work around, everything will be more complicated. Imagine trying to get a mortgage.


----------



## xabiaxica (Jun 23, 2009)

paulwilko10 said:


> Is that not the whole point of the S1 though? The Spanish are getting their money via the S1?


If you are living & working in Spain then you have to pay tax & Spanish 'national insurance' contributions. 

You cannot avoid that. By doing so you will be able to join the Spanish state healthcare system in your own right & part of your contributions will also go towards your eventual pension. 

Why would you expect the UK to financially support your healthcare when you don't need them to?

Spain would be getting 'paid' twice.


----------



## kaipa (Aug 3, 2013)

It might seem strange but whilst you can benefit with free healthcare if you dont work you cant if you are legally working. Unless your UK company set up a system to pay your SS you will have to register as self employed in Spain. Of course the temptation is to not tell the Spanish authorities and just get your income paid to your UK account etc but beware that UK banks will eventually ask you to confirm your place of residence. Once they know it is not UK they can then inform the Spanish authorities and provide the Spanish tax man with all your accounts. So it really is a case of bite the bullet and register as autonomo when you arrive in Spain


----------



## MataMata (Nov 30, 2008)

xabiaxica said:


> Why would you expect the UK to financially support your healthcare when you don't need them to?
> 
> Spain would be getting 'paid' twice.


In essence S1's are only available to those not covered by another countries social security system, as you would be if working in Spain.

It's possible that things may have changed since Jan 1st but I still find it hard to believe that HMRC would issue a joint S1. I was on one for a number of years before retiring and certainly then it was individual S1's for myself and my wife.

You will only get a UK nil tax code by submitting a 'Spain Individual' form which confirms that you are properly enrolled in the Spanish tax system.


----------



## Lynn R (Feb 21, 2014)

MataMata said:


> You will only get a UK nil tax code by submitting a 'Spain Individual' form which confirms that you are properly enrolled in the Spanish tax system.


I agree. The form comes in two versions, Spanish and English. The Spanish version has to be sent to the Agencia Tributaria, who then issue the applicant with a Certificado de Residencia Fiscal en España (Convenio). That certificate is then sent to HMRC together with the English version of the Spain Individual form, and HMRC then issue an NT tax code (no tax) and refund the tax already paid in the UK. I don't think the AEAT will issue the certificate of tax residency until after a Spanish tax return has been submitted and tax paid in Spain.


----------



## paulwilko10 (Aug 27, 2021)

Just to let you all know, we have now received the S1 and it is only 1 as i said and my name is on it as is my Wifes.

I am not trying to avoid paying SS as such, i am trying to avoid going self employed.
The accountant for our company said i will have to go self employed as i will need to pay into the SS system in Spain.
I totally understand that, but that conversation was before we got the S1 and we wondered if having it would stop the requirement of going self employed and paying directly in to the SS system in Spain as the S1 covers my costs.

It was only a thought, if its not how it would work then Self employed it is :-(

Cheers

Paul


----------



## kaipa (Aug 3, 2013)

paulwilko10 said:


> Just to let you all know, we have now received the S1 and it is only 1 as i said and my name is on it as is my Wifes.
> 
> I am not trying to avoid paying SS as such, i am trying to avoid going self employed.
> The accountant for our company said i will have to go self employed as i will need to pay into the SS system in Spain.
> ...


If you intend to work you will either pay SS through employer or self employed. You cant use your partner's S1 as a means of avoiding SS payments or else life would be great!!!


----------



## paulwilko10 (Aug 27, 2021)

Yeah that's fine, worth the question, thanks


----------

