Foreign (EC) contractor working in UK

[Batcher]

Think you missed the point I was making re foreign companies working in the UK. I am sure that some countries have hoops to jump through but that does not stop one from looking as was implied in the previous post which I was commenting on.

UK agencies are a point in case as they refuse to work with overseas companies in most instancies, but suspect that is more them trying to cover their rears then any legal requirement.

Fair enough. There's nothing to stop anyone looking for work anywhere.

[BlasterBates]

Think you missed the point I was making re foreign companies working in the UK. I am sure that some countries have hoops to jump through but that does not stop one from looking as was implied in the previous post which I was commenting on.

UK agencies are a point in case as they refuse to work with overseas companies in most instancies, but suspect that is more them trying to cover their rears then any legal requirement.

The problem is that contracting is subject to the rules on employment intermediaries and use of PSC's, clients and agencies are obliged to ensure everything is above board otherwise they potentially take a hit. That's why you can use a foreign company but it will need to be adequately registered in the UK, otherwise both clients and agencies will generally ignore you (but not always).

[Asgeir]

Thanks for your advice all. I assumed I would get an email when my question was approved so I didn't realize there were already answers.

I can understand why UK companies or agencies wouldn't want to work with foreign companies but I didn't think it would be illegal. Foreign companies must sell their services to the UK all the time without having legal entities there?

I know that it is rather easy to start a ltd in the UK so I might do that but I would rather not have to deal with having two companies with two different set of rules and tax authorities.

Again thanks for giving your time to discuss this

[SueEllen]

Thanks for your advice all. I assumed I would get an email when my question was approved so I didn't realize there were already answers.

I can understand why UK companies or agencies wouldn't want to work with foreign companies but I didn't think it would be illegal. Foreign companies must sell their services to the UK all the time without having legal entities there?

True but unfortunately when you start digging into the UK market you will realise how little UK agencies and some UK clients understand about tax law and law involving contracts in general.

Your best bet is to set up a UK limited company as they take hours to set up and find a UK accountant. It's not difficult.

The main difficulty you will have is calculating any additional personal taxes you have to pay in Iceland if you are considered resident there also.

Also if you do set up a UK limited company regardless of whether you set it up in England and Wales, Scotland or NI and work through that make sure any contracts you get are checked by a legal expert for both IR35 and general clauses.

[Asgeir]

True but unfortunately when you start digging into the UK market you will realise how little UK agencies and some UK clients understand about tax law and law involving contracts in general.

Your best bet is to set up a UK limited company as they take hours to set up and find a UK accountant. It's not difficult.

The main difficulty you will have is calculating any additional personal taxes you have to pay in Iceland if you are considered resident there also.

Also if you do set up a UK limited company regardless of whether you set it up in England and Wales, Scotland or NI and work through that make sure any contracts you get are checked by a legal expert for both IR35 and general clauses.

Thanks. I will talk to an accounting/legal expert in this area to get an advice before going further.

[SueEllen]

Thanks. I will talk to an accounting/legal expert in this area to get an advice before going further.

Get the appropriate expert for the corresponding field. So don't get legal advice from an accountant.

[pmasoft]

Get the appropriate expert for the corresponding field. So don't get legal advice from an accountant.

In addition don't get tax advice from a general solicitor; speak to a qualified tax solicitor.

[SueEllen]

In addition don't get tax advice from a general solicitor; speak to a qualified tax solicitor.

WHS but be wary. There are some accountants and lawyers who say they can advise in an area but can't. When tulip hits the fan they disappear.