Working abroad as a contractor

You might also find our guides on Contracting in Belgium, Contracting in Germany, Contracting in France and Contracting in the Netherlands helpful.

Working as a contractor through your own limited company in the UK is commercially rewarding and also very tax efficient. It is easy to forget, but the UK has one of the lowest rates of Corporation Tax in Europe. Before you decide to leave the UK as a contractor consider the following:

  1. All countries around the world have their own tax laws, some are very different and have some rather unusual restrictions. For example the Netherlands, where you will not be allowed to contract through your own limited company.
  2. You can of course trade and invoice through your UK company in many other countries. However, to do this effectively you will need to:
    a) source expert tax help in the country you are working in, as you may be liable for additional tax, especially if you will be spending a considerable time overseas;
    b) consider the implications with regards to your UK corporation and personal tax if bringing money back into the UK;
    c) think about continuing your National Insurance contributions. If you don't keep these up to date you may not be eligible for NHS treatment or your state pension.
  3. In some countries, it is unlikely, unless you are provided with a local resident visa, you will be allowed to open a bank account in local currency. You will therefore need to investigate how your client intends to pay you.
  4. The good news is, it is very unlikely that you will be the first person to have been asked to provide your services as a contractor to the client.

Your client or agent should be able to answer most of your questions. Also, other contractors are usually more than happy to provide a helping hand when it comes to explaining how they work and what pitfalls to look out for.

Other things to think about are currency exchange rates (just look at the £ - $ rate, definitely not a good time to be paid in dollars) and the sometimes high cost of expert tax advice in the country you are working in. This coupled with potentially higher corporation tax may actually take the shine off those higher daily contract rates.

Our advice is if you are just working overseas for a short while i.e. a couple of months and are invoicing from your UK limited company and being paid by a UK client, there is little to worry about. However, if you are considering working abroad for any length of time, it would be in your best interest to seek specialist advice.

If you are thinking of becoming a contractor / freelancer or have any questions about working through your own limited company please call our New Client Services helpdesk on 0500 152500 / 01442 275789 or e-mail rachel@sjdaccountancy.com

Further information
Have you downloaded SJD's Contractor Guides yet? If not, find below links to the key guides:

About SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 11,000 clients.

We are the only National specialist firm of accountants with offices in all major UK cities so you’ll never be far from your accountant. SJD also have more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA. You’ll also be pleased to know that we are one of the lowest priced as well.

SJD have also won every relevant industry award possible, including:

  • Best Contractor Accountants - Contractor UK 2011 - 2007
  • Accountant of the Year - The British Accountancy Awards 2011
  • Best Professional Team of the Year - UK Customer Experience Award 2011
  • Customer Commitment Award - Institute of Customer Service 2011
  • National Chamber of Commerce Award 2010
  • Medium firm of the Year - Finalist Accountancy Age 2010
  • Excellence in Customer Service - Finalists National Customer Service Awards 2009
  • Sunday Times Best Small Companies - Award 2009 - 2007
  • Small firm of the Year - Accountancy Age 2007 & 2004 and finalists in 2010 and all years since 2003.
  • Deemed PCG accredited accountants and fully MSC compliant

We offer all clients:

Free face-to-face meetings. This is another unique service, only SJD offers free face to face meetings - tax is complicated and sometimes only a meeting will do.
Unlimited access to your own dedicated accountant. No call centres, no outsourcing, no automated call handling. Simply telephone, e-mail or meet your own dedicated accountant face to face.
Money backed service guarantee. All your telephone calls and e-mails will be answered the same day or we will refund your monthly fee's.
Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.
All inclusive low cost monthly package which includes completion of accounts, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns. 

All this for a fixed monthly fee of £110 plus VAT, which is one of the lowest prices in the market. And most importantly, in a recent survey 98% of our clients rated SJD as 'better than other accountants' - we are working hard to convince the other 2%!

If you have any question about contracting or would like any further advice please either contact your SJD Accountant or call our new client services helpdesk on 0500 152500 / 01442 275789 or email: michelle.turbutt@sjdaccountancy.com.

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!

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