The world is more accessible than ever and there are countless contracting opportunities that can take you across the globe. You could be consulting a new tech firm in Paolo Alto, working on an oil rig with nothing but beautiful blue ocean around you, or working as a doctor in deprived country; the possibilities are endless.
The adventure of living and working abroad is definitely within reach – but it does need careful preparation ahead of time.
There are tax implications as well as foreign contract law to contend with, and failing to organise yourself ahead of time can lead to costly repercussions down the line.
Before you take those initial steps to contracting abroad, it is essential that you check the laws surrounding contracting in your desired destination. Each country is different and laws will vary according to where you go.
Where are you going?
If you are planning on contracting within the EU, you will not need to make any visa arrangements; however, if you’re looking to move further afield, you should make sure you have the right visa in place before doing so. You should make sure you’re familiar with any local laws that might affect your contract, your tax liability or your day to day life while you’re abroad.
How long are you going abroad for?
The length of your trip will affect your preparations. A shorter duration, a few months for example, will leave you with less to prepare, but stay for longer and you may have to change your residency status for tax purposes.
If you live abroad and make frequent returns to the UK, you may still be liable to pay UK tax. Depending on how much time you spend in the country, you may be eligible for “split-year” tax, through which you only pay tax on the capital gains and income earned in the duration of your time in the UK.
If you are considering relocating permanently you’ll be subject to the taxation laws in the country in question and therefore it is important that you solicit the advice of a local tax expert before you commit to any contract.
Once you know the details of your contract, your Integro Accountant will be able to advise you on these details.
Other Things to Consider when contracting abroad
One important piece of contract law that will always apply if you are a UK tax resident – no matter where you are in the world – is IR35. IR35 legislation designed to catch out contractors “disguised” as employees, making them liable to pay tax and NI contributions as a full-time employee.
Whilst you are working abroad it is essential that you remember to keep on top of your National Insurance, especially if you plan on returning to the UK. Failure to pay NI over extended periods of time can lead to you losing your state pension, amongst other things. It’s easy to do and our expert accountants will be with you every step of the way.
At Integro Accounting we have a wealth of experience in helping contractors just like you get to grips with contracting abroad and staying on top of taxation. To find out more about our fixed fee service and how we can help, don’t hesitate to contact us.
Why Integro Accounting?
Integro Accounting is the UK’s only specialist provider of fixed fee, limited company accountancy services for contractors, consultants and freelancers that was established to an award winning standard – our Practice Manager, Maria Hickmott FCCA, won The British Accountancy Awards’ ‘Accountant of the Year’ in 2011.
We were set up with the vision of providing a service that is the ultimate for the dynamic, busy professional of today in a language you understand.
Integro Accounting have designed a bespoke service for the contractor who is always on the go; never forgetting that one size will never fit all.
The relationship you have with your accountant is the most important factor in our service which is why we will always offer unlimited contact with your own personal accountant; whether that contact is via the phone, email or face to face.
We have our 3 offices located in London, the South-West and on the Bedfordshire and Buckinghamshire border. There are also meeting locations in many of the major cities and towns across the Home counties, South-West and South Wales, all conveniently placed so that you never have to travel far to meet your accountant.
If you have any questions about contracting or would like to find out more about how Integro Accounting can help you and business please call Christian on 01525 303984, email firstname.lastname@example.org or request a callback.