Contracting in UK via umbrella, becoming tax-resident abroad Contracting in UK via umbrella, becoming tax-resident abroad
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  1. #1

    Should post faster


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    Default Contracting in UK via umbrella, becoming tax-resident abroad

    I'm in the process of establishing legal residency in an EU member state before the EOY in order to benefit from the Withdrawal Agreement, and therefore I will be tax-resident abroad from next calendar year (no doubt split-year when I do my UK SA).

    I've been offered a remote contract, and the agency is insisting I use one of their preferred umbrellas. I'm inclined to go along with this (perhaps in the future I'll be able to impose a more rational scheme), but it will be dodgy/absurd/illegal to be paying PAYE and NICs to the UK when I should be paying social contributions in the place I'm moving to (at least, from the start of next year).

    I could open a company in the other country and charge the umbrella, but frankly by that point I'm not sure there'd be enough cash left to justify the hassle. It could be a violation of the umbrella Ts&Cs, also.

    I could insist on charging the client from a foreign company with no umbrella, but the agency will probably cry and find someone else. Same goes for trying to use an umbrella in the foreign country, i.e. not on their preferred list.

    Any other options here?

  2. #2

    bored now

    eek's Avatar
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    Quote Originally Posted by zerosum View Post
    I'm in the process of establishing legal residency in an EU member state before the EOY in order to benefit from the Withdrawal Agreement, and therefore I will be tax-resident abroad from next calendar year (no doubt split-year when I do my UK SA).

    I've been offered a remote contract, and the agency is insisting I use one of their preferred umbrellas. I'm inclined to go along with this (perhaps in the future I'll be able to impose a more rational scheme), but it will be dodgy/absurd/illegal to be paying PAYE and NICs to the UK when I should be paying social contributions in the place I'm moving to (at least, from the start of next year).

    I could open a company in the other country and charge the umbrella, but frankly by that point I'm not sure there'd be enough cash left to justify the hassle. It could be a violation of the umbrella Ts&Cs, also.

    I could insist on charging the client from a foreign company with no umbrella, but the agency will probably cry and find someone else. Same goes for trying to use an umbrella in the foreign country, i.e. not on their preferred list.

    Any other options here?
    Find a job locally?
    merely at clientco for the entertainment

  3. #3

    More fingers than teeth

    BlasterBates's Avatar
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    You need to make it a condition that you use an umbrella that sets up PAYE in your country of residence, some umbrellas do. If they don't there is no point persuing this.

    Try Sue at IPAYE.
    I'm alright Jack

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