Limited / umbrella company - Bulgarian contractor?

[mase]

I am a Bulgarian citizen, currently working on a 6-months contract - a software house in London (I am employed by a Bulgarian umbrella company that deals with the recruiting agency).

I am thinking about changing my current payment scheme - either going with an UK-based umbrella company or forming my own limited company in the UK.

My question is - would I encounter any problems in either of the above scenarios because I am a Bulgarian citizen (I.E. I have to get a work permit or become self-employed in order to work in the UK)? Do these restrictions apply for IT contractors working on fixed-duration contracts, as well?

PS: Any fellow IT contractors from Bulgaria / Romania on this forum? Can you please offer more details about your legal arrangements for contracting in the UK?

[victorantos]

self employed

Hi,

I from Romania. Just arrived in UK and looking to work as a contractor like you(software development).
I think we should apply to be self employed...

Uk border agency says:
What about working as a self employed person?
Employing a Bulgarian or Romanian national in the UK 5
UK Border Agency
March 2008
EU law allows a citizen of the Union to establish themselves in Business in any member state. This means a Bulgarian or Romanian national will be allowed to be self employed in any Member State. Romanian or Bulgarian nationals who are self employed in the UK must register their business activity with the Inland Revenue and must register to pay National Insurance contributions as a self employed person. Working “cash in hand” may result in them being considered as an “illegal worker”

http://www.ukba.homeoffice.gov.uk/wo...ania/applying/

[NotAllThere]

It's highly unlikely that you'll be able to work self-employed as an IT contractor - UK citizens generally can't do it either. It's the way the market works.

Having read the linked webpage, it seems that you can't work in the UK without a work permit from your employer. This would seem to preclude working through a brolly, unless they applied for the permit.

This section seems more relevant.

As it looks like you can live in the UK without any formalities, you could perhaps set up your ltd co, and have your ltd co apply for your work permit.

You should still read thefirst time guides to contracting in the UK.

If you work for a company (like a Bulgarian Umbrella company) that is established outside the UK, you don't need a permit. If you work in the UK for 12 months, you won't need a permit, and then you can do what you like.

And maybe contact the UK Border Agency for further advice. Bear in mind that government officials are not used to thinking outside the box, and are unlikely to understanding the contracting model.

[victorantos]

I called UK border Agency : 441142074074

and they talled me I don't need any work permit or any other document from them in order to work as a contractor

So I can open my limited company and provide services from the first day.

Only I need to register my activity to IR, I think...

[Alan @ BroomeAffinity]

You'd be better off in an umbrella. If you're only going to be cotnrating for 6 months then having yor own ltd co may prove to be more hassle than its worth. Setting up a company is straightfoward enough, but the bank account can be a nightmare.

[NotAllThere]

...
Only I need to register my activity to IR, I think...

No you don't. Go read the first timer guide. If you work for a limited company that you own, you are not self-employed. You are employed by the ltd co.

You'd be better off in an umbrella. If you're only going to be cotnrating for 6 months then having yor own ltd co may prove to be more hassle than its worth. Setting up a company is straightfoward enough, but the bank account can be a nightmare.

You're probably right on that, except that the published rules seem to indicate that that the brolly would have to apply for a work permit. I've no idea whether they'd do that.

[victorantos]

Agency

An agency called me to talk about an contract and about umbrella services that they offer.
Well, I dont know what is better. They talled me its easier to work under umbrella and that there is no account that will help me with administrative papers that knows about IR35 if I choose to create my own ltd company.

Anyway I think in reality its not so diffcult to manage a limited company, there are a lot of information out there(like this forum).

And I want also to provide services like advertising on my personal websites.
I have already one possible client who want to put a text ad.
I want to create a subscribtion payment system for the users on that same website.
So if a go under umbrella, I don't know if I can do this?!

[Alan @ BroomeAffinity]

You're probably right on that, except that the published rules seem to indicate that that the brolly would have to apply for a work permit. I've no idea whether they'd do that.

Shouldn't the OP already have that if he is working here? Regardless of who he is working for.

[NotAllThere]

Yes, but it's the permit to work for a specific employer. If you change employer, you then the new employer has to apply for a permit for you.

[NotAllThere]

An agency called me to talk about an contract and about umbrella services that they offer.
Well, I dont know what is better. They talled me its easier to work under umbrella and that there is no account that will help me with administrative papers that knows about IR35 if I choose to create my own ltd company.

Anyway I think in reality its not so diffcult to manage a limited company, there are a lot of information out there(like this forum).

And I want also to provide services like advertising on my personal websites.
I have already one possible client who want to put a text ad.
I want to create a subsribtion payment system for the users on that same website.
So if a go under umbrella, I don't know if I can do this?!

If you are providing services directly, then you can most likely do it as self-employed. You can do this in conjunction with any other employment. That is, you can be both employed and self-employed at the same time! You can have more than one employer as well.

Before deciding anything seek professional advice. Advice is usually worth what you pay for it.