Contractor PAYE/ place of business whilst abroad Contractor PAYE/ place of business whilst abroad
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  1. #1

    Default Contractor PAYE/ place of business whilst abroad


    I was working full time as a contractor directly for a UK company for more or less a year. The company processed my payment through their payroll (initially via bank transfer and later via cheque), deducted my tax and NI and everyone was happy.

    My contract came to a close and 3 month after I decided to go traveling across Europe. A month into my travels, I started working for the same company remotely and we agreed on the terms/payment via email. I was all would be processed as per the previous arrangement.

    Problem 1
    After 3 month of working (and no payment received as yet ) I have now been sent the "contractor agreement" which states I no longer will be paid through the companies payroll, but have split my day rate into hours, allocate my hours to different projects and invoice their different account branches of their company. Which means I cannot expect to receive my money per day x days per month worked (paid on a monthly biases) but will be paid in different intervals by different accounts for the hours spent working on different projects....

    Problem 2
    As they know I am traveling they demand that they pay me in Euro, which is not possible since as a "traveler" I have no bank account or rights as an resident thus no options of opening one. As an alternative they suggested payment into my UK account but I need to give them my temporary accommodation address as the "Contractor’s principal place of business".

    I still remain a UK resident in the current tax year due to the 183 day rule/ average of 90 day traveling in UK rule and will be liable to pay income tax in the UK.

    Therefore I would presume to legally secure myself I should be paid into a UK account as well as have a UK principal place of business? I am only currently staying in a flat and can't see how this has now become my principal business address.

    I would also prefer to receive my monies through the payroll instead of waiting for months for the different accounts to process the invoices, which would mean I would find myself out of cash many more month to come.

    So my questions are:

    - can I legally request to be back on the payroll? (when I was on payroll, I went to their office and worked on their computer. I now work from home (in a different country) and on my personal computer but with their email server etc.)

    - do I need to give my current but temporary travel address as my principle place of business or can I use my UK address and my UK bank account?

    I would appreciate some advise on this! Until I sign the agreement and comply with their invoicing system I will not get paid....

  2. #2

    Permie Swiss (pending)

    NotAllThere's Avatar
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    Aug 2007
    Far away from HMRC


    Quote Originally Posted by lookingforanswers View Post
    - can I legally request to be back on the payroll?
    Yes. But they're under no obligation to accede to your request.

    - do I need to give my current but temporary travel address as my principle place of business or can I use my UK address and my UK bank account?
    Use your UK address. If they'll only pay you in Euros, open a Euro account.

    Probably the simplest solution to your woes is to work through an umbrella company in the UK. You obviously have no desire to work as a contractor through a limited company, so I won't suggest that.

    If the client wants you to charge hours to different departments, then that could be workable to your advantage.

    No-one is forcing the contract on you - you can negotiate. And they can always withdraw the offer and you don't have to work for them.
    Down with racism. Long live miscegenation!

  3. #3


    Thanks for your answer. The issue with the Euro bank account is that you can't get on in the country I am in, unless you are a resident and or are employed by someone in the country. So a total Catch 22.

    The company has also provided me with 2 agreements (both identical in terms of the agreement) but one with their business address in UK and one with their business address in Luxembourg. The Luxembourg address, as far as I can gather is where the company deals with most of their accounts/payment of vendors/contractors. I have been told that some of the services I have done, have to be billed to UK and the remainder (majority) to Luxembourg.

    Is it normal to have 2 agreements for different accounts of a company? I am worried that by signing both it (especially with my "travel business address") will get me into a hell of trouble with the tax man.

    I can't help the feeling that they are following some type of agenda with demand of my travel address to be on the contract, the stopping of PAYE and by providing me with 2 agreements with essentially different businesses.

    I am indeed in the process of negotiation but I also have not been paid for any of my work yet......

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