2 month contracting expat - how?

[SueEllen]

1. The new UK tax year started on 6th April. So if you owe HMRC any money between the 6-19 April you can sort it out yourself. Just phone up and ask them. Google their phone numbers. (They may say you owe nothing.)

2. Yes. With a sole trader if you don't pay your taxes and/or you are deemed to be an employee by HMRC then they will go after the client for the tax and NI owed. In addition if Transferwise are in the middle and are acting as an employment business they would end up being liable. So Transferwise or the client will force you to use an umbrella company or Transferwise may decide to act as a employment agency.

3. I have no idea who Transferwise are so you need to talk to them about how they will pay you and what bank accounts you need. Phone them up tomorrow and ask them. Chase them until you get an answer.

4. You pay the income tax then claim it back.

That's how it works in the UK and has always worked if you are on PAYE. NI is non-reclaimable so you pay what you owe from your wages weekly or monthly.

Self assessment for income tax is different but for someone who is coming from abroad don't get involved in it especially as there is a UK Swedish double tax agreement*, and it will cost you more to sort it out than it's worth.

Have a look at the UK-Swedish double taxation agreement. As you will be credited for tax you paid in the UK this year. You need to contact the Swedish tax office and ask them about this. The UK one won't have a clue.


* I forgot about the double tax agreement in my first post. The UK has them with virtually all countries in the world.

[jakobhe]

Anyone who can help? Would really appreciate any!

[jakobhe]

Thanks for that reply - very helpful! Still have some questions though

-If you weren't working for your previous employer before the 6th April then you don't need to contact them.

I was working for them between 25 of January to the 19th of April so I guess I have to contact them then. Will I then have to pay in tax to HMRC for the money I earned to then get it back on the tax return?

- You need to find out if your client will accept you as a sole trader otherwise you need to use an umbrella company. You are not in the country long enough to use a limited company plus you won't have the credit rating, residency requirements etc to get a business bank account.

What are the issues with sole trading for the client, why would they not accept me as a sole trader?

- It's up to the client/umbrella company if they will pay you into your Swedish account. However you will have to pay all the exchange rate fees and the bank cost. UK banks make money on charging for this. The costs are extortionate.

If I get paid through Transferwise this shouldn't be an issue?

- Your client or umbrella company should help you get a personal bank account if you have problems. It will be the bank they bank with as they are vouching for you.

If I get paid through Transferwise there isn't really any reason for me to set up a UK bank account since the costs are relatively low. Or is there anything I'm missing here?

-Any tax you pay can be claimed back. When you get the refund depends on your situation and when you leave. Generally you get paid back my submitting a form plus copies of documents. You can find the form online on HMRC's website directly by Googling. Do it yourself and fon't use a company as it's very easy.

If my income is under the personal allowance, I shouldn't have to pay in any taxes to HMRC right? Is there any form that I can use to conciliate the taxes so I don't have to pay in taxes to HMRC?

Thanks again!

[SueEllen]

-If you weren't working for your previous employer before the 6th April then you don't need to contact them.

- You need to find out if your client will accept you as a sole trader otherwise you need to use an umbrella company. You are not in the country long enough to use a limited company plus you won't have the credit rating, residency requirements etc to get a business bank account.

- It's up to the client/umbrella company if they will pay you into your Swedish account. However you will have to pay all the exchange rate fees and the bank cost. UK banks make money on charging for this. The costs are extortionate.

- Your client or umbrella company should help you get a personal bank account if you have problems. It will be the bank they bank with as they are vouching for you.

-Any tax you pay can be claimed back. When you get the refund depends on your situation and when you leave. Generally you get paid back my submitting a form plus copies of documents. You can find the form online on HMRC's website directly by Googling. Do it yourself and fon't use a company as it's very easy.

-NI is calculated weekly do you cannot claim that back if you pay it.

[jakobhe]

Hi,

I'm a Swedish digital designer, and I came to London at the end of January to work at a 3 month accelerator program for startups. During the program, I earned £1000 per month, so £3000 in total, and I was hired by the accelerator. Since my work period didn't exceed 3 months and since Sweden and UK is in the EU, I didn't have to register for a National Insurance Number.

Now that the program has finished, I'm going to work as a contractor for two months for one of the startups in the program before going back to Sweden at the end of June. I get paid £4000 per month through Transferwise, so my total wage for the two months (and taxation year) will be £8000. Since I'm now staying for more than 3 months in total in the UK, I have registered and received a National Insurance Number.

I have the following questions:

- Do I have to notify my previous employer (the accelerator program) of my recently received National Insurance Number and then they will have to register my salaries since I'm now staying for more than 3 months?
- If I have understood it correctly the personal allowance is £10600. Since a new taxation year began on April 6th, my total earnings (if the salary from the accelerator program is included) for the new taxation year will be £9000. So since I won't exceed the personal allowance, do I even have to register as a contractor in the UK at all?
- If I do have to register as a contracter, what's the best in my case, to register as a sole trader or a limited company?
- Is it okay to get paid through Transferwise to my Swedish account, or do I have to set up a UK bank account?
- Do you have any other suggestions or advice on how I should go about contracting in the easiest way? Since it's only 2 months it feels stupid to go through too much hassle for this. I have considered an umbrella company but I think I loose to much money on doing that.

I have searched the forum but can't find an answer to my specific case, so any help is appreciated!