UK-based contracts whilst living in Central Europe

[secdog]

Hi everyone,

I was wondering if anyone had any experience of working on UK-based contracts whilst residing abroad? I'm trying to gauge if this is feasible for UK remote roles or roles that are partial remote with the requirement of being in the office when needed. Flying back every so often is cheap and I have a place to stay just outside of London.

Just to give some background, I'm a permie working in Central Europe. The work is fine, but I'm starting to value time over money far more. Even looking at the lowest rates I can find in my field, five months contracting would provide the same yearly income as some of the highest paying permie roles here after tax and social security contributions have been taken into consideration.

I'm in security by the way

[Lance]

Hi everyone,

I was wondering if anyone had any experience of working on UK-based contracts whilst residing abroad? I'm trying to gauge if this is feasible for UK remote roles or roles that are partial remote with the requirement of being in the office when needed. Flying back every so often is cheap and I have a place to stay just outside of London.

Just to give some background, I'm a permie working in Central Europe. The work is fine, but I'm starting to value time over money far more. Even looking at the lowest rates I can find in my field, five months contracting would provide the same yearly income as some of the highest paying permie roles here after tax and social security contributions have been taken into consideration.

I'm in security by the way

your problem will be finding agencies who will pay a foreign national. Are you foreign? Have you heard that the UK have recently 'taken back control of borders' precisely to stop EU citizens undercutting British workers. An agency will have to check your right to work status and if you don't have a UK passport or visa then they'll bin your CV.

If you do have a UK passport it's a lot easier, but agencies want an easy ride so unless you have a UK LTD. company, or are paid through a UK umbrella you'll likely go in the same bin because it's too much effort.

And either way, you'd still have to pay local tax and social security. and have foreign income to handle. That might not be so easy depending on where you are.

Have a search of the forums as you're not the first to ask.

[Paralytic]

Also note that some (and most in certain sectors) clients will not let you physically work outside of the UK for data security/protection reasons.

[ContractorPL]

The only compliant way to organise it is to charge your UK client using your local limited company (set up in your country of residence). No issues is with Brexit, work-permits, tax residence, IR35..

The problem is to find a client that would agree to it. In my area (banking and insurance companies), I'd say that 10% of offers on the market might be available (you can forget about inside ir35 completely, there's a chance for a few outside ones).

Good news is that the situation is slightly improving over the recent couple of months (one year ago I didn't know anyone to be allowed it, now about 6 friends of mine are in such a set up and even big recruitment agencies say in some of their offers 'ideally UK based, but international candidates will be considered').

I have never heard of anyone having issues with data (transferred overseas), but perhaps that's just in banking and insurance.

You can also consider a UK LTD but that would require very frequent travelling to the UK to be on the safe side re your company tax residency (which is a real problem here in contrary to the personal tax residency which is easy) . But I'd be clear to your client about that. I saw once contractors cut off the same day the HR realised they are abroad (though they were via UK LTDs).

Hope this helps

[secdog]

your problem will be finding agencies who will pay a foreign national. Are you foreign? Have you heard that the UK have recently 'taken back control of borders' precisely to stop EU citizens undercutting British workers. An agency will have to check your right to work status and if you don't have a UK passport or visa then they'll bin your CV.

If you do have a UK passport it's a lot easier, but agencies want an easy ride so unless you have a UK LTD. company, or are paid through a UK umbrella you'll likely go in the same bin because it's too much effort.

And either way, you'd still have to pay local tax and social security. and have foreign income to handle. That might not be so easy depending on where you are.

Have a search of the forums as you're not the first to ask.

I'm a UK citizen and also a permanent resident where I currently reside. Setting up a UK LTD from here wouldn't be an issue.

The only compliant way to organise it is to charge your UK client using your local limited company (set up in your country of residence). No issues is with Brexit, work-permits, tax residence, IR35..

The problem is to find a client that would agree to it. In my area (banking and insurance companies), I'd say that 10% of offers on the market might be available (you can forget about inside ir35 completely, there's a chance for a few outside ones).

Good news is that the situation is slightly improving over the recent couple of months (one year ago I didn't know anyone to be allowed it, now about 6 friends of mine are in such a set up and even big recruitment agencies say in some of their offers 'ideally UK based, but international candidates will be considered').

I have never heard of anyone having issues with data (transferred overseas), but perhaps that's just in banking and insurance.

You can also consider a UK LTD but that would require very frequent travelling to the UK to be on the safe side re your company tax residency (which is a real problem here in contrary to the personal tax residency which is easy) . But I'd be clear to your client about that. I saw once contractors cut off the same day the HR realised they are abroad (though they were via UK LTDs).

I guess my question is, for a remote role that pays through a UK LTD, would the agent or client really be concerned where I permanently reside or where the work is performed from?

The hassle with tax etc. is definitely worth the payoff of additional free time.

[Lance]

I guess my question is, for a remote role that pays through a UK LTD, would the agent or client really be concerned where I permanently reside or where the work is performed from?

Yes. More often than not they will be concerned.
Some clients won't give a fig, but a lot would.
Agencies ought to not care, but agencies are simple creatures, they like predictability and consistency. If you are an anomaly you quickly slide into the "too hard" pile (bin).