Freelance contract - German agency - Advice needed

[JDRContracting]

Hi,

New to the forum so hello to everyone.

I am looking for some advice in regards to a contract offer I have had to provide services to an End Client through a German recruitment agency. I will be working remotely in the UK for a multinational where I will provide consultancy services to a number of countries, including some UK work. Contract puts me firmly outside of IR35 so that's not a concern. However, I have never contracted with a foreign agency and am not sure if I need an EORI number. I have read a bit that post-Brexit it will be required in order for the Agency to use the reverse charge provision for VAT. I'll also be paid in Euros and wonder if it's best to look for a Euro business account rather than have money converted to Sterling in my current business account. Any help would be greatly appreciated.

[jamesbrown]

If it’s a multinational, they will probably have a UK permanent establishment and, therefore, be responsible for providing an SDS. Regarding an EORI number, I think that’s for trade in goods, not services. The VAT rules post-Brexit shouldn’t be different than supplies outside the EU. In other words, you adopt the standard place of supply rules and most B2B supplies will be outside of the scope of UK VAT, so your invoice won’t include VAT. Regarding the currency you want to retain, that is impossible for us to answer and seems more related to where you want to live long-term, but you should consider a Wise account for low-cost FX.

[JDRContracting]

If it’s a multinational, they will probably have a UK permanent establishment and, therefore, be responsible for providing an SDS. Regarding an EORI number, I think that’s for trade in goods, not services. The VAT rules post-Brexit shouldn’t be different than supplies outside the EU. In other words, you adopt the standard place of supply rules and most B2B supplies will be outside of the scope of UK VAT, so your invoice won’t include VAT. Regarding the currency you want to retain, that is impossible for us to answer and seems more related to where you want to live long-term, but you should consider a Wise account for low-cost FX.

Thanks very much for your response here, very helpful.

[Eirikur]

Yes it is reversed VAT just like before brexit. Open a business Euro account with Wise, it will give you a Belgian Euro account number and you can get a company debit card as well, will cost you one off £20 you can add for free multiple currency accounts such as USD, GBP etc

[Andy Hallett]

Another vote for Wise. I set up a GBP, USD, EUR and AUD account with them for £16*

* Showing off my international client base

[Eirikur]

Small note about Wise though, from June they will have a negative interest of 0.9% p.a. on business balances above €30k. There is no negative interest on other currency balances. Also Wise is not FSCS protected so best to move large sums to a UK account

[jamesbrown]

Small note about Wise though, from June they will have a negative interest of 0.9% p.a. on business balances above €30k. There is no negative interest on other currency balances. Also Wise is not FSCS protected so best to move large sums to a UK account

Agree regarding FSCS, don't keep any significant balance there. On your first point, interesting. I have often wondered whether their service would become more expensive/crapper over time, post listing. The share price has been hammered since it went live. So far, the service is just as good, but we'll see.

[Bodger]

Agree regarding FSCS, don't keep any significant balance there. On your first point, interesting. I have often wondered whether their service would become more expensive/crapper over time, post listing. The share price has been hammered since it went live. So far, the service is just as good, but we'll see.

The negative interest rate is because they hold your money in Euro accounts for that currency, and the ECB currently has negative rates on high balances.

Another thing to noteis that they are about to increase their fees to transfer from Eur to GBP. It may still be the most competative option, I haven't checked, but it may not be the slam dunk it was previously.

[jamesbrown]

Ah, right - thanks.