It’s an age-old query but in the past, to answer it, we have cautioned contractors against whether they should use a UK-registered limited company abroad, writes Kevin Austin, managing director of overseas contracting advisory Access Financial.
What do you need to know about employing contractors from overseas?
Companies using overseas contractors need to consider country-specific employment regulation and keep updated on any developments in employment law (eg the 2016 ruling that Uber drivers should be classed as ‘workers’ rather than ‘self-employed contractors’).
Is it safe to send money to an overseas contractor?
For regular payments to overseas contractors, you need a reliable money transfer service. Your safest bet is to pick a well-established and reputable company. If you’re sending money from the UK, for example, make sure the company is authorised and regulated by the Financial Conduct Authority.
Can a company hire independent contractors instead of employees?
If your company is expanding abroad or you are recruiting skilled talent in other countries, one of your options is to hire independent contractors rather than employees. This can be an attractive alternative for many reasons, and is a viable way for a company to access the global marketplace.
Which is the best way to hire an overseas contractor?
It may sometimes be necessary for a local lawyer to convert the agreement into an appropriate form. Using overseas contractors through a managed service company is another option. Rather than contracting directly with the individual, you will be contracting with the service company which handles any employment law issues at their end.
What’s the difference between contractor and employee in the UK?
In the UK, there are important distinctions between employees, workers and self-employed contractors which determine the applicability of various employment laws (eg entitlement to minimum wage and holiday pay).
Can a UK company bill for work outside the UK?
Alternatively, you could pursue and bill your short overseas contract through an umbrella company. However UK based Umbrella services are usually only designed for assignments based in the UK, though occasional work outside the UK under a UK contract for short periods of time is generally acceptable.
Can a NIC worker work for a client abroad?
Well the answer is yes and no! For NIC purposes, where a worker provides their services to the client abroad, IR35 may not apply.
Do you have to be based in the UK to work overseas?
Before a job is advertised, departments need to consider carefully what employment status and contract type the role should have attached to it, especially if the new recruit will be based overseas for the entire duration of their employment/engagement with the University.
