UK: Working remotely from another country

As the world returns to normal, many people see the opportunity to work remotely in warmer EU climates. However, in reality, most UK employers will not accept employees based outside the UK unless you are a contractor or set up as an independent Ltd company.

Despite this, there are options available to UK or EU citizens who want to work for UK organisations whilst remaining a fully independent freelancer or contractor. By partnering with a business management company like us, you can enjoy all the benefits of being an employee whilst still operating independently as a freelancer on your terms and schedule.

In this article, we will look at the options available to workers who are looking to move to the EU from the UK or those freelancers already in the EU looking to work on contracts from UK employers.

Can a UK company employ somone abroad ?

Most UK employers will not employ workers outside the UK unless they are contractors or set up as a limited company. However, a UK contract can be issued to a EU based worker, but this does present some issues for both parties due to several grey areas. As an employee that would not frequent the UK, there is no tax liability for the company or the employee despite a UK employer benefitting from said employee’s work. It is feasible for the employer to run payroll and pay workers outside the UK on an NT (No Tax) code. The rules and guidance around this from HMRC are confusing and unclear. They suggest the employer would need to assess whether the worker was an employee regardless of the fact this status doesn’t carry much meaning for a worker in another country as assessment of employment status would need to be carried out under local legislation. It can also be difficult for an employer to prove their employee is under direct management without a physical or virtual presence in day-to-day business tasks.

Under the rules of most local authorities, the foreign worker is likely always to be seen as self-employed rather than an employee because of the many barriers and the inability to prove their employment status under HMRC guidance. As a result, the employee would neither be employed within the UK nor their country of residence. This means they would be considered self-employed in their own country and would likely be liable to pay tax for themselves and their remote employer. So while it is technically possible, the process causes more issues than UK companies are prepared to deal with.

One way to get around this process is to use a management company as an intermediary and have a legal contract with the employer to work with them. If you are wondering what this is, keep reading. We will explain more below.

How can EU citizens apply to a UK job (full remote) ?

Suppose you work as a contractor in Spain, Italy, France, Portugal or any other EU nation. You want to apply for a fully remote job you have seen advertised in the UK and wish to apply as a contractor through a management company like us. In order to do this there are two sides to the process, namely:

• On one side of the agreement, a management company will have a contract with the final client, the UK-based employer.
• On the other side of the process sits the contractor or consultant (that’s you) and your contract with us (as your management company) to carry out the work for the UK employer.

There are considerable benefits to both parties for following this process, you won’t need a visa to carry out the work, and you do not have to worry about any of the hassles of completing a UK tax declaration. In addition, as a Hightekers contractor, you won’t be subject to double taxation as you will be officially employed through Hightekers and a local contract. So you will only be taxed at the rate set within your country of residence.

Benefits of going throught a management company

There is a multitude of benefits of working through a management company, including:

• No time consuming and complicated international paperwork to complete. We will do it all on your behalf.
• Local cover – You don’t need to take out extra health insurance. It will be included as an employee benefit along with many others.
• Our management system opens the door to working for UK companies and reaching more clients outside your local region.
• We make sure all the legal requirements to work abroad are met under our contracts
• No more tax-related headaches. If you work remotely, you only pay tax in your local country!

For example, if you are a freelance contractor working from Spain and decide to join Hightekers, you will receive all the benefits of being an employee whilst remaining an independent freelancer. You’ll receive tailored support from a team of industry experts, whether that’s to find a new contract or negotiate your contract terms once an opportunity becomes available. We support you through your contract negotiations to secure the best deal for your skills and expertise. Once a contract is agreed upon, Hightekers takes care of all the paperwork, tax and insurance and make sure you receive cover in your country. In addition, we will take care of invoicing, fee collection, management of expenses relating to the project and any legal declarations. All the Spanish contractor needs to do is focus on the tasks assigned and growing your business with our support.

Do you need a visa to work remotly for a UK company ?

No, If the worker is entirely remote and not physically working in the UK, they will not need work authorisation or a visa to carry out work for any company based in the UK. This only gets complicated if the worker needs to visit the UK for any activities relating to their contract. In which case you should seek advice and assistance from our team.

Just like working for a UK employer from abroad directly comes with its complexities, the same applies to individuals based in the UK wanting to work with foreign employers. You’ll again face the issues surrounding taxation, and establishment of employee status without being physically or virtually present. As you are completing the work from the UK, HMRC will seek to tax your income received from the employment, leaving you open to double taxation from the local country who you are completing work on behalf of. So in short, it is entirely possible. However, it can be a complex process.

Using a management company to act as an intermediary to complete work for a foreign employer allows you to access a range of benefits and have all of the tax, paperwork, invoicing, and other admin tasks taken care of as part of your contracts arranged through us.

Can a foreign company employ someone in the UK ?

Yes, in theory, but just as employers in the UK are reluctant to employ remote staff based in the EU directly due to the various tax issues and other employment status barriers, the same applies in reverse.

Is foreign employement income taxable in the UK ?

If you are classed as a UK resident, you will usually be subject to tax on any foreign income and gains. Whether you are a Ltd company or a Sole Trader you can expect to pay tax on your income regardless of the country the money was earned. This will need to be declared as part of your self-assessment for a Sole Trader. Any foreign earnings should be included in the amount of corporation tax your organisation pays.

One of the most significant tax implications of earning through a foreign employer is the possibility of being double taxed. This will depend on the tax laws of the company you are carrying out work for and any arrangement the UK government has with the country your employer operates from. Where agreements between the UK and local countries are in place it is possible to apply for a tax refund.

Taxation on foreign income is a complex subject. By working with us, we can manage the whole process for you. Our team will take care of everything from paperwork to contract negotiation and PAYE. All work completed through Hightekers is on a local contract so there are no taxation headaches for our employees.

Moving and working abroad can put you in a “chicken or egg” situation. It can be challenging to determine if you need a job or a permit first. For EU citizens, it is possible to move freely between EU countries without needing to complete paperwork or need for any special permit.

However, the process becomes a little more complicated for non-EU nationals, including workers from the UK.

For example, if you relocate to Spain the first thing you need to do is apply for a national identity card (NIE) card. Unfortunately, the process involves a lot of paperwork if you want to stay and work remotely beyond 90 days.

Benefits of the management companies for UK citizens working abroad

There’s no getting away from the fact that the complex taxation systems and local employment laws make working remotely from abroad harder than it first appears on the surface. You face the possibility of paying tax in the UK and the local country you are working from and the rules can vary from district to district.

This is why many freelancers and contractors work with management companies like ourselves to handle their international contracts. As a management company, we act on your behalf as your employer. Managing all the complex paperwork associated with working for an employer in another country and providing you with support and employee benefits. A management company will also handle payroll, invoicing and critically tax issues on your behalf. Using our management services is quicker, cheaper, and more accessible than muddling through the complex process independently. A management company provides valuable resources to contractors who operate under our services.

Help for Visa and local paperwork

Post-Brexit, if you are a UK citizen wanting to work in an EU country, you’ll almost certainly need a work visa. The process and entry requirements to obtain a visa or work permit vary from country to country. UK citizens no longer have an automatic right to live and work in the EU, but it is still possible. However, it requires a little more paperwork and planning before heading off. To add an extra layer of complexity, if you want to apply for a work visa, you will usually need to have secured a job before applying for one.

Instead of applying for a country-specific visa, other options are available, such as the Digital nomad visa. This visa allows workers to work in a limited number of designated countries in exchange for an application and permit fee. The digital nomad visa is valid for twelve months and can be renewed for up to three years and you need to prove you have a regular monthly income from the local country. Not every country will accept a digital nomad visa so always do your research before purchasing one if you intend on using it in a specific location.

At Hightekers, we can take all the pain out of applying for a visa. As a management company that handles your employment affairs, there are no work visa requirements and we handle any paperwork and contracts associated with the employer you are working for – regardless of their, or your location.

Working abroad Insurance

When moving abroad and working remotely as well as taking into account all the local employment laws and tax rules for the region you will also need to make sure you have adequate business insurance for the work carried out. As a contractor, you are solely responsible for your work and all the liabilities that come with it. Insurance is essential to protect your business from disruption and costly claims that could arise from a dispute.

Another great reason to use a management company is that you can work on projects with the peace of mind that you are fully insured against any possible disputes arising from your work while working on a contract issued through Hightekers.

How to easily get a job abroad when you are a UK citizen ?

With a management company it’s simple to find work abroad as a UK citizen both for the employer and the employee (you). One of the great benefits of our model is that there is no need for a freelancer to build their own business model in the country they move to. This can be a massive help to any newly settled UK citizens, especially when considering the potential language barriers and complexities of local markets. As a freelancer, you just need to find the project and we will take care of the rest.

We will help you adjust your daily or project rates to match the local market, as well as taking on total management of your freelancer contracts and taking care of all the associated paperwork. We provide a service that takes all the difficulties out of freelancing abroad so you can concentrate on what you do best rather than completing piles of paperwork for each contract.

Previously, any UK citizen with a permanent contract who went freelance had to become a contractor or create a Ltd company to work abroad. However, now, freelancers can remain as they are without needing to change their business status. Plus, a management company can help with any visa requirements, negotiate details of sponsorship and determine the most favourable tax package for your activity.

Once you have resided in a country, whether in Europe or the UK, for six months or more a year, you become a tax resident. That means you could be considered a paying tax resident in both your native country – let’s say the UK and the country you have moved to.

For UK contractor clients, it’s much easier for them to hire you through a management company as they will not have to personally manage any payment laws in the local country or manage any international bank transfers. This makes the whole process easier and more transparent compared to dealing with the difficulties that arise by employing an international contractor directly.

What are the legal requierements to move to the UK ?

Since January 1, 2021, specific requirements were introduced for European citizens that need to be met for anyone who wishes to work or study in the UK. This is due to the UK leaving the European Union. Anyone who moves to and works in the UK will be subject to a points-based immigration system. This system will prioritise your skills and talent. In addition, some regulatory checks need to be carried out, including a police and criminal background check.

You can find more information about the new entry requirements and point system here.

Can I get a UK work visa without a job offer ?

Anyone outside the UK that is applying for a skilled worker visa will need to provide proof of the following:

• A job offer from a Home Office-licensed sponsor at the required skill level

• A relevant minimum salary threshold by your sponsor (typically £26,500 or the going rate for their particular job, whichever is higher)

• English language at the intermediate level at B1 (on the Common European Framework of Reference for languages)

You can visit the UK without a work visa for up to six months to visit friends, family, undertake short term study and attend job interviews. However, once you have secured a job offer, you will need to go through the immigration process to secure a permanent work visa.

Luckily we are an official “worker visa sponsor” and we can help you with your visa paperwork. Just contact us for more information!

Management company : the solution to move to the UK hassle-free

If you are planning a move to the UK, a management company can simplify the whole process for you. Once you find a good local management company that operates within your industry and find a mission, a management company like us can help you through the whole process of applying for and getting a work visa and ensuring you are compliant with IR35. Once you are set up, we act as your employer, and you will receive all the benefits associated you would expect from direct employment status.

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