Freelancing in Europe but staying in UK?

[cdon]

May be a basic one but have been doing some thinking.

If I was a permanent UK resident can I freelance (or contract) for a company in Europe (inside the EU) without major issues?

I hold an EU passport (Does this even matter in this scenario?)
I will maintain residence in the UK
I may continue to work in the UK also (PAYE)

I don’t intend to relocate or stay for long periods in any fixed location in mainland Europe, instead I would work remotely and travel to different locations in Europe when the work is required (maybe 40-50 days a year across different countries). Although the company and their HQ location would remain fixed.

Work is Engineering services and it would be a second job/weekend work.

Can this be achieved as a sole trader/freelance without a Ltd company/umbrella? And does either pose any challenges?

Struggling to find info on this scenario as most queries are regarding UK residents that have lost status as a result of Brexit and may now require a visa.

[Countdown]

There is nothing to stop you doing this (subject to having the right to work in the EU). You'll be liable for UK taxes, you can set up either as a Sole Trader or LtdCo. You might be liable to EU taxes as well but you might get tax relief if the UK has a DTT with the relevant country.. the fact that it's a 2nd job is irrelevant - any Job = earnings = tax.

[Countdown]

cdon said:

Although the company and their HQ location would remain fixed.

Can this be achieved as a sole trader/freelance without a Ltd company/umbrella? And does either pose any challenges?

Struggling to find info on this scenario as most queries are regarding UK residents that have lost status as a result of Brexit and may now require a visa.

I missed this bit. So you're contracted by the same Company to carry out work in various different EU Countries?

[cdon]

Countdown said:

I missed this bit. So you're contracted by the same Company to carry out work in various different EU Countries?

Yes all of the work at present would be for the same company in the EU.

Work is part time and may follow a pattern of 3-6 days a month in one EU country followed by a break of 2-3 weeks before the next 3-6 days in a different EU country.

In between these times I would not be carrying out any work for this company.

(There is potential to add other EU clients that would follow a similar schedule or work pattern but not immediately).

[Countdown]

Should be fine. You’ll be liable to UK tax for all your earnings. As you’re working on a self employed basis the Company shouldn’t be deducting any tax or social security costs.

[StevieBee]

This is pretty much what I do. Half of my work is non-UK. I have clients based in Geneva, Belgium, Bulgaria and Germany.

They pay me either directly (on a personal consulting basis) or via my company (UK registered Ltd company). Either way, I bill them and they pay into my UK bank accounts. I pay my tax to HMRC.

Where I actually do the work they appoint me to do is of no consequence or relevance.

Assignments can range from 10 to 20 says up to several months (though rarely am I in another country for more than two weeks on the trot).

A few things that may crop up....

If you're working for or on public sector projects within the EU, being a Brit can be a hindrance post Brexit. If fact, in some situations it's impossible in a direct capacity. We encountered this even before we left and to get around it, I and a couple of others set up a SCE company based in Bulgaria. This provides an EU company that bids for and is awarded work which it divvies out to its members. So my 'client' - who I bill and who pays me - is the SCE company. It's a bit of a faff and does take a little off the day rate but is still worth looking at.

If you're unfamiliar with SCE companies: https://ec.europa.eu/growth/sectors/social-economy...

Whether you operate as a sole trader or Ltd company is likely to come down to the requirement of your clients. My biggest client is the UN and they only recognise independent 'experts' so with them, I'm appointed on a short-term personal contract whereas I work for several German development institutions that will only appoint a Ltd company.

And prepare for arcane bureaucracy. I regularly have to physically print out, stamp, sign and post invoices rather than email or send from Quick Books.

And open a EUR account at your bank.

The only flag I can see is this......

cdon said:

Countdown said:

I missed this bit. So you're contracted by the same Company to carry out work in various different EU Countries?

Yes all of the work at present would be for the same company in the EU.

Regardless of location, HMRC can get a bit tetchy around the determination of 'Freelance'. The principle test is the ability to work freely for more than one company (though there are others). I'm fairly certain you can't split what is essentially the same contract into two types which is what I think you are suggesting is the case. As far as HMRC is concerned you are either contracted, freelance or employed (I think!).

Other than that, get stuck in.

HTH

Edited by StevieBee on Wednesday 8th December 22:36

[cdon]

StevieBee said:

The only flag I can see is this......

cdon said:

Countdown said:

I missed this bit. So you're contracted by the same Company to carry out work in various different EU Countries?

Yes all of the work at present would be for the same company in the EU.

Regardless of location, HMRC can get a bit tetchy around the determination of 'Freelance'. The principle test is the ability to work freely for more than one company (though there are others). I'm fairly certain you can't split what is essentially the same contract into two types which is what I think you are suggesting is the case. As far as HMRC is concerned you are either contracted, freelance or employed (I think!).

Other than that, get stuck in.

HTH

Edited by StevieBee on Wednesday 8th December 22:36

I should probably clarify the above.. All of the new work being proposed in Europe would be part time freelance (or contract) and with a new company that I do not currently have a relationship with. It’s a single project that takes place in a number of different EU countries.

The PAYE work that I would be continuing to do in the UK is for my current employer and focuses on a slightly different industry. They are not related.

I hope this makes sense. Thanks for your help, very informative!

[Countdown]

StevieBee said:

Regardless of location, HMRC can get a bit tetchy around the determination of 'Freelance'. The principle test is the ability to work freely for more than one company (though there are others). I'm fairly certain you can't split what is essentially the same contract into two types which is what I think you are suggesting is the case. As far as HMRC is concerned you are either contracted, freelance or employed (I think!).

if the Company isn't UK based HMRC won't be able to impose IR35 on them so I don't think it would be an issue either for the OP or for the Company which chooses to contract him.