Query re doing work for a Company registered in Gibraltar

David_Watts2

I currently have a small role all done online working from home for a few hours a week. Current pay is £300 per month for which I invoice them, I'm registered as self employed and pay voluntary class 2 NI contributions via self assessment to chip away at the years I need to get the full state pension.

The business has been sold to a new company who are based in Gibraltar. Intention is for role to carry on as is, initially at least and the proposed contract seems to be on similar terms to the existing one.

My query is are there any issues or considerations arising from the change to doing this for a UK based company to one based in Gibraltar.

MyRealNameToo

Are you VAT registered?

Assuming you arent there should be minimum of fuss. Assuming they are used to dealing with overseas businesses then it should all be fine, if they arent then they may ask certain things based on Gib requirements that won't apply to you (in Gib you need a licence to be a sole trader but you dont need one in the UK) but that should be easy enough to sort out.

If you do have insurance for your business worth checking with them if they will consider it overseas income given your contract presumably will be under Gib jurisdiction not England & Wales which will probably adjust your premiums.

David_Watts2

Thanks. Not VAT registered and not insured. As I said, it's £300 per month for a few hours work each week, all done online. Basically the equivalent of making the step from being a regular contributor on here to doing a small amount of moderating and thread starting.

One thing I've realised is I might be paid in Euros which could be a bit of faff. Perhaps a supplementary question for the banking section!

Marcon

Why would you be paid in euros? That's not Gibraltar's currency. If your contract specified euros then see if there's scope to ensure you aren't the one to take the hit if the exchange rate bombs.

David_Watts2

https://forums.moneysavingexpert.com/discussion/comment/81922913#Comment_81922913

Thanks. It's an Italian firm but the part I'm potentially contracting with is incorporated in Gibraltar. I'll ask about the possibility of being paid in GBP as it would obviously be preferable. I note it specifies that Gibraltar law would govern the contract so I'll have to try and get my head round any negative implications of that.

To be honest it's starting to feel like a lot of hassle for such a small role but I'll do a bit more due diligence before I just give up and effectively resign!

MyRealNameToo

Note that Gibraltar is the GIP not GBP. It is pegged at 1:1 with GBP so no FX risk but most banks will charge their non-sterling fee for payments in GIP.

Really the contract should state the currency and if its going to be paid in anything other than the contract currency then it should also state how FX will work else its just opening up disputes on every payment.

https://forums.moneysavingexpert.com/discussion/comment/81922913#Comment_81922913

Of cause its a two way street and means the OP could benefit if GBP is the one bombing. Some would prefer no FX risk but if you have it then it can be up or down.

David_Watts2

Thanks for the replies. The currency issue has been resolved, payment will be in GBP.

The contract seems to be a fairly standard one for work as a contractor so I'm close to signing and seeing how it pans out. I can always give my 30 days notice if I don't like how the role develops in future.

Given that the role remains the same (£300 a month for a few hours work per week) are there any implications I should consider from a HMRC perspective (tax and NI) purely because I'll now be contracted to a firm registered in Gibraltar rather than the UK. Or does that make no difference to HMRC as long as I continue to correctly submit my self assessment each year?

MyRealNameToo

As long as it's a self employed arrangement then it makes no difference.

Were you an employee then it would be different as it would then have to go into the foreign income section of your self assessment form rather than self employed