Contracting abroad – what to consider

If you are a contractor whose skills are in high-demand, you may at some point in your contracting career find yourself with an offer to work abroad.

Not only could this be fantastic for your career, it also offers you the opportunity to immerse yourself in a new culture and expand your professional network. Before, you rush off to buy a plane ticket, here are some things to take into consideration:

Travel documents and work permits

As the UK is technically still a member state of the EU, UK residents do not need visas to travel and work in Europe. However, there are some areas where work permits are required. For example, even though Switzerland is part of the EU social charter for free movement of labour, you will need to obtain a residence and work permit to work as a contractor.

For countries outside of the EU zone, work permits will be required. How easy it is to obtain a work permit depends on the country that the contract is in and the type of role you will be doing. Before signing a contract, it is worth carrying out extensive research and if possible, speaking with other contractors who have worked in the country, to find out what the process involves.

Tax laws

The biggest concern for anyone who is self-employed is being able to maximise their take home pay by working as tax efficiently as possible. This becomes even more important if you are planning on contracting overseas.

Even though you will be working abroad, you may still be required to pay UK taxes.

Most contractors in the UK choose to work through their own limited company as it is the most efficient set-up in terms of taxation. However, if you continue to operate through a limited company whilst contracting overseas you may be liable for paying corporation taxes in your chosen country if moving the business substantially to that country.

Before you make the decision to contract abroad, get professional tax planning advice from an experienced contractor accountant – like ourselves.

Working patterns

The standard working hours in the UK is 9-5.30. It is unlikely that this will be the case in other countries. For example, in Spain, the typical working day is 9 am to 8 pm, with a two-hour break in the middle of the day. And, in Dubai, the standard working week is Sunday to Thursday.

It is important to take into consideration, the working pattern of the country you will be contracting in, and to ask yourself if this will fit with your personal circumstances.

If you are looking to contract overseas, give us a call on 01962 867550 or send us a message via our website to discuss your different options. If you’re interested in becoming a contractor, download or comprehensive guide to contracting.