US client - No UK presence

[mcc1380]

It depends whether you’re fixed on the sole trader route. If you aren’t, it’s more complex because you have more options. If you’re a sole trader, it’s really quite simple and essentially no different than working with a UK client, save the possibly greater risk from a lack of limited liability. I wouldn’t accept that risk, but it’s a personal choice.

I am likely to remain as sole trader, providing service as a technology consultant. I am totally a novice on all this. I never worked as a sole trader either. I understand the liability part now. That was very helpful.

[jamesbrown]

I am likely to remain as sole trader, providing service as a technology consultant. I am totally a novice on all this. I never worked as a sole trader either. I understand the liability part now. That was very helpful.

In that case, I don't think it's too complicated. You don't need to worry about IR35 or CEST. The client may need to worry about your employment status, but it's unlikely that you would look like an employee of a US client, in practice. The main things to think about are PI insurance (with North American coverage) and how you're going to exchange the USD (assuming they're paying you in USD): hint - TransferWise. The client may also ask you to complete a W8-BEN (US tax withholding form), but there's no need until they actually ask, and they may not.

[mcc1380]

In that case, I don't think it's too complicated. You don't need to worry about IR35 or CEST. The client may need to worry about your employment status, but it's unlikely that you would look like an employee of a US client, in practice. The main things to think about are PI insurance (with North American coverage) and how you're going to exchange the USD (assuming they're paying you in USD): hint - TransferWise. The client may also ask you to complete a W8-BEN (US tax withholding form), but there's no need until they actually ask, and they may not.

Thanks. I spoke with Sue yesterday. She gave me some pointers. Who would you recommend for PI? Any website?

[jamesbrown]

Thanks. I spoke with Sue yesterday. She gave me some pointers. Who would you recommend for PI? Any website?

I use Randell Dorling through my IPSE membership, underwritten by Hiscox. I haven't found a better price for North American coverage. It really pays to shop around, though, because you're likely to see some dramatically higher prices from some brokers.

[mcc1380]

I use Randell Dorling through my IPSE membership, underwritten by Hiscox. I haven't found a better price for North American coverage. It really pays to shop around, though, because you're likely to see some dramatically higher prices from some brokers.

very interesting. I started to look around and called only one company so far. It's Hiscox!!! their cost goes up more than double when you add the USA. I just looked up IPSE membership. That is quite good. Learning so many things from you. I appreciate it very much.

[jamesbrown]

very interesting. I started to look around and called only one company so far. It's Hiscox!!! their cost goes up more than double when you add the USA. I just looked up IPSE membership. That is quite good. Learning so many things from you. I appreciate it very much.

No problem at all.

Yes, adding North American cover can be super expensive. If it's doubling, you're probably not doing that bad. However, it will come down in price through Randell Dorling, I think. Give them a call and see what they say (ask them for the price with IPSE membership too - in fact they may only do insurance with IPSE membership, I forget).

I think IPSE membership is worthwhile, on the whole. Putting aside their lobbying efforts (which I'm not a fan of, in general), I think the amount it costs is generally worth the accrued benefits gained, such as free life assurance (5k), tax investigation insurance (not tax loss, but the professional fees), client/agency failure cover up to 10k (I think) and a bunch of other stuff (e.g., Perkbox). There are plenty of other outfits that offer tax investigation insurance, but IPSE has a fairly broad set of benefits. YMMV.

[Pring]

Thanks. I spoke with Sue yesterday. She gave me some pointers. Who would you recommend for PI? Any website?

I use Kingsbridge for my PI insurance covering a contract under North American Jurisdiction (state of VA). You can't get a quote online and have to answer a series of questions about your contract. Not cheap but cheaper than Hiscox was...

[openstrike]

However, it will come down in price through Randell Dorling, I think. Give them a call and see what they say (ask them for the price with IPSE membership too - in fact they may only do insurance with IPSE membership, I forget).

The only thing IPSE membership buys you with Randell Dorling is the shared pot. They do an exactly equivalent policy for the same price but without the shared pot and that's available to all comers.

I echo what everyone else has said: sole trader is fine but be sure of your insurance. I have always tried to mandate British (actually English) jurisdiction for contracts with USA clients but YMMV on that one.

Good luck.

[jamesbrown]

Yes, if you can get the jurisdiction and governing laws to be the courts and laws of England and Wales, respectively, that is much preferred, but this can be a deal breaker for large companies in my experience, even if you're calling the shots in general. If you have that, you won't need special PI insurance.