self employed and working abroad

SamuelHarvest

Hi all,
Where can I find information about what tax is payable on work done outside the UK but in the EU?

Most of my work is for one employer, who pays in sterling. Most of my expenses are in Euros.

Sam

TheCyclingProgrammer

By employer, I assume you mean client. I also assume you are genuinely self-employed and not just being made to work as self-employed by your "client".

Where is your client based?

Working abroad and foreign tax regulations can get quite complicated. You'll probably want to speak to an accountant who specialises in this sort of thing. You could potentially be liable to tax both where you're working and in the UK, subject to any double-taxation treaties.

This article might give you an idea of how tricky it can be:
http://www.contractorcalculator.co.uk/taxation_uk_contractors_europe.aspx

SamuelHarvest

I have read the article you posted. Thankyou. It is tricky isnt it!

The majority of my work is indeed coming from a "client" who is based in the uk. There is no reason why other work might come in, either from UK clients or else where.

I have to start at the beginning. I have been outside of the UK for over a year as the article suggests.
If I work for this client, the majority will be outside the UK.

Where do the bounderies lie?

I was hoping to get at least some basic understanding before approaching a professional.

TheCyclingProgrammer

SamuelHarvest wrote: »

The majority of my work is indeed coming from a "client" who is based in the uk. There is no reason why other work might come in, either from UK clients or else where.

The biggest question mark in my mind is whether or not you are genuinely self-employed. The fact you are working for a single "client" and have no expectation of work from any other client makes it sound like there is really an employer/employee relationship here. Its hard to make a solid judgement based on what you've said though.

If there is really an employer/employee relationship then your "client" should be putting you on their payroll.

Even if you're employed by a UK employer, there could still be further tax implications of working abroad though:

http://www.hmrc.gov.uk/payerti/employee/changes/work-abroad.htm

SamuelHarvest

OK lets make it a bit clearer. I am self employed.

I have said in the last post that I do envisage work from a number of different clients.

It may well move to an employer/employee relationship but at the moment that is not my status.

I have searched through the hmrc site, and have read the page you have kindly linked. This is why I have arrived here and taken the trouble to sign up to the forum.


So, if I am self employed and I do some of my work outside the UK, does this have a different rule than if I did all of my work inside the UK?

Apologies if this wasnt clear at the beginning

TheCyclingProgrammer

SamuelHarvest wrote: »

OK lets make it a bit clearer. I am self employed.

I have said in the last post that I do envisage work from a number of different clients.

My reading of your last post was that you didn't expect any work from other clients, perhaps I read it wrong.

Just remember that your actual status is determined very much by your working practices. HMRC have a tool that you can use to try and be sure of your status:

http://www.hmrc.gov.uk/calcs/esi.htm

So, if I am self employed and I do some of my work outside the UK, does this have a different rule than if I did all of my work inside the UK?

Yes, working abroad for a length of time may have further tax implications. You could remain tax resident in the UK but also become liable for tax in the country you're working in. Which is why you need to speak to a specialist - ideally an accountant in the country you are working or a UK based accountant that has particular expertise in this as it would require familiarity with the other country's tax regulations.

SamuelHarvest

According to the calculator I am self employed.

OK on to finding a professional.

Thankyou very much for your time.