Moving to UK and working from home

[tn_fi]

I am currently living in California and very likely moving back to europe soon, not home country Finland but UK. As EU citizen I hope this move will be a lot easier than my previous relocation to usa. Currently I have customer in usa and I am planning to do work for them from my home in UK. We are quite far in the process and basically the deal is done but terms in contract can still be changed.

I have a lot of things to consider when moving, I am hoping to get some pointers on business side here. Although any tips and pointers on getting settled in UK are also welcome.

My work in this case will be almost exclusively for this one customer. The work is support and further development of code base that runs on customers various existing and future products( consumer electronics ). I am only one working on the software and related hardware design is done by other company in third country. I will supply most equipment and work from home.

I have done some internet research on UK taxation and regulations. I am thinking running my own limited company is the way to go. Only real concern going Ltd is IR35 monster, my case has points for both being inside and outside of IR35. inside( long contract, monthly rate, one main customer ) outside( customer outside EU, working home, may use subcontracting, own equipment and workplace, no set hours.. ). I don't really consider umbrella companies since that wouldn't fit well me and my customer. I don't like idea of being sole trader either as I prefer to draw line between work and personal life, I also have plans expanding the business later.

Any comments on my IR35 status and what I should have on the contract to get outside?

Can someone recommend accountant who would fit my case? Hopefully he/she can also assist to get the contract outside of IR35. I also hope to get done much as possible over the internet before I actually move to UK. How much should I prepare to spend on accountant services for setting up company, reviewing contract for IR35 and checking my payroll/book keeping and doing annual returns?

Do I need to register for VAT? My turnover probably goes over the limit but its virtually all export of services with VAT 0%. If I register for VAT can I get VAT refund on equipment purchases? Do I need to do something special paperwork for exporting services?

What insurance is needed in addition to indemnity? I will be only full time employee and I can have part time employee(s) helping me. How much I should prepare spending on basic insurances?

I will provide most of the equipment for this task. I personally already own bulk of needed equipment ( laptop, oscilloscope, analyzers and other lab stuff ). Should I sell that equipment to my company and how to determine the price? Unfortunately I don't have receipts for most of the stuff, is that a problem?

So many things.. I am glad if I get answers even for some..

[d000hg]

I am using Quay Accounting. £66+VAT per month and they include IR35 analysis in that price, they also set up my company for about £100 and can sort you out a business bank account if you don't want to go and look for one.

If you want you can PM me about that.

[Fishface]

You should be well outside IR35.

1. You own your own tools for the job.
2. work on your own premises
3. manage your own time
4. the ability to accept other work
5. the ability to refuse work
6. your company has costs related to the sale.

You need to open an off-the-shelf company and register for VAT.

Not a big deal just pay an accountant to do it for you.

Accountants will love to frighten you about IR35 and charge you for something related to it when it is obviuos you are out of it or can step out of it very easily.

make sure your company owns some proprietary code or method and in your contract it states somewhere 'the work is NOT made of hire'.

You can always bill them differently also rather than a monthly - charge them a maintenence fee and bill per job done - you might end up making more money also.

[PAH]

If you can work from home, and the UK isn't really your 'home' (so no friends and relatives there), I'd prefer to be working from a nice sunny beach-side villa, where the food and drink is cheap.

Not seen many places fitting that description in the UK, but you may be more lucky.

I suppose after California, rain is a bit of a novelty. Believe me, the novelty wears off when you need a boat to get to your car.

[BA to the Stars]

Like PAH says, you are an EU national. Have you looked at which would be the most tax advantagous EU country to work from, plus living costs in the UK are not the cheapest in the EU.

You may also wish to look at the levels of paperwork involved in the various countries and whether you can trade as self employed or need a company.

If it is part of your strategy to then obtain contract work within the UK then that would also influence your decision.

You can also use personal preferences to reach your decision e.g. gives me the chance another language, always wanted to visit UK, have friends living in UK, etc.

HTH

[weemster]

I am currently living in California and very likely moving back to europe soon, not home country Finland but UK. As EU citizen I hope this move will be a lot easier than my previous relocation to usa. Currently I have customer in usa and I am planning to do work for them from my home in UK. We are quite far in the process and basically the deal is done but terms in contract can still be changed.

I have a lot of things to consider when moving, I am hoping to get some pointers on business side here. Although any tips and pointers on getting settled in UK are also welcome.

My work in this case will be almost exclusively for this one customer. The work is support and further development of code base that runs on customers various existing and future products( consumer electronics ). I am only one working on the software and related hardware design is done by other company in third country. I will supply most equipment and work from home.

I have done some internet research on UK taxation and regulations. I am thinking running my own limited company is the way to go. Only real concern going Ltd is IR35 monster, my case has points for both being inside and outside of IR35. inside( long contract, monthly rate, one main customer ) outside( customer outside EU, working home, may use subcontracting, own equipment and workplace, no set hours.. ). I don't really consider umbrella companies since that wouldn't fit well me and my customer. I don't like idea of being sole trader either as I prefer to draw line between work and personal life, I also have plans expanding the business later.

Any comments on my IR35 status and what I should have on the contract to get outside?

Can someone recommend accountant who would fit my case? Hopefully he/she can also assist to get the contract outside of IR35. I also hope to get done much as possible over the internet before I actually move to UK. How much should I prepare to spend on accountant services for setting up company, reviewing contract for IR35 and checking my payroll/book keeping and doing annual returns?

Do I need to register for VAT? My turnover probably goes over the limit but its virtually all export of services with VAT 0%. If I register for VAT can I get VAT refund on equipment purchases? Do I need to do something special paperwork for exporting services?

What insurance is needed in addition to indemnity? I will be only full time employee and I can have part time employee(s) helping me. How much I should prepare spending on basic insurances?

I will provide most of the equipment for this task. I personally already own bulk of needed equipment ( laptop, oscilloscope, analyzers and other lab stuff ). Should I sell that equipment to my company and how to determine the price? Unfortunately I don't have receipts for most of the stuff, is that a problem?

So many things.. I am glad if I get answers even for some..

Happy to swap Uk contract for one in C.A

[tn_fi]

As some of you guessed, yes I am planning to move to UK because of exotic weather, delicious food, low taxes, ease of running company and low cost of living. You guys make me regret my choice Maybe I should still consider some country with nice beaches and friendly taxes...

However, thanks for advice. I use your advice for negotiating the initial contract, I will check with accountant later to make sure I am outside IR35. With all respect I don't want to pay any more taxes than needed, anyway on my case HMRS has nothing but to win.