One-off freelance work for an American client

[xara]

I have an offer to do some one-off freelance work for a North American client. It's basically preparing technical questions for an IT exam and reviewing already submitted questions. The cash is not great, but I could do this work in my sleep, and there may well be more lucrative gigs in the future with the same client.

I've worked with US clients in the past, but always through a UK-based agent. Qdos told me they'd charge me plenty if I want to do this directly, as their pro indemnity stuff has lots of strictures about US-based clients. The contract is not a typical trying-to-be-exempt-from-IR35 contract with a clause to redo crappy work at my own expense (there is nothing about rewriting crap questions or crap reviews).

Just looking for some advice, if anyone's done something similar in the past. Options seem to be:

- Do it privately/as an individual and log it appropriately on my self-assessment. (This may be totally reasonable but a lifetime of IR35 paranoia dies hard).
- Do it via the limited and probably pay most of the fee to Qdos for the privilege.
- Ask an agent with whom I worked for a US client in the past if they want 10% to remove the hassle. (This is definitely the option I'd pursue if there are bigger engagements in the future, but it's also doing their job for them).

[base]

If the revenue is sizeable:

1) Obtain US PI cover from Hiscox (200-400 quid a year probably)
2) Ask the client to sign an IPSE template contract with your LTD
3) Provide a U.S. W-8BEN-E form to the client so that they do not impose a withholding tax on your payment

If it's not, why bother?

[xara]

If the revenue is sizeable:

1) Obtain US PI cover from Hiscox (200-400 quid a year probably)
2) Ask the client to sign an IPSE template contract with your LTD
3) Provide a U.S. W-8BEN-E form to the client so that they do not impose a withholding tax on your payment

If it's not, why bother?

You mean why bother doing it, or why bother considering the pro indemnity question?

[WordIsBond]

Several things you might consider.

1. Ask QDOS if they will give a better price if the contract is written under English (or Scottish, if that's where you live) law. That's what I do with my American clients (but I have the leverage to dictate those terms, you may not).
2. If a level-headed assessment is that there is no reasonable circumstance under which you'll end up with liability, consider just doing it without professional indemnity cover. Notify QDOS in writing that you are doing it and do not expect their cover to cover this. DON'T do this as self-employed -- then any liability is yours personally. At least keep yourself under the limited liability protection of your company. The larger the contract the more dangerous this is.
3. Don't involve an agent if you'll regret it later when he's taking a cut of a bigger contract and a different arrangement would be better. If you do involve an agent, at least make sure you aren't handcuffed.
4. I've started using Transferwise Borderless Banking for my overseas clients (including US) and find it works well. I would not leave money in the account, however -- as soon as it hits, convert it and move it to your UK account. You don't have the normal protections.

Not sure what you meant about IR35 in regard to just doing it as a sole trader. IR35 doesn't apply to sole traders. But if you do it through your Ltd it probably helps a little in any IR35 case that comes along, because it helps you argue that you are in business for yourself. It's one of those things that could tip the balance in a close case, or could just encourage them to look elsewhere rather than pursue an investigation. If it were me I'd definitely do it within the company. Why pay extra tax and make yourself personally liable?

[CoolCat]

Or you could ask one of the umbrellas if they will let you bill via them

Can you not contract with the US organisations UK or European subsidiary? that's the normal trick if you are working here