Newly self-employed, first contract abroad - advice please!

[greenbee]

I’ve recently set up as a sole trader, registered with HMRC and just been offered my first freelance contract to work for a German-based company in France for 5 weeks. Where do I start?

- I’m habitually resident in the UK, and will remain so. I haven’t finalised the contract details yet, but the fee being offered is in euros, with certain expenses also claimable in euros on top. Is IR35 likely to apply?

- Should I ask to be paid into my UK sterling bank account and just take the hit on the currency conversion rate? Would this also mean I just declare it as normal with the rest of my business income when I come to do my tax self-assessment?

- I'll be taking out professional indemnity insurance. Am I right in thinking I can request EU wide coverage to cover the period this contract?

- What about insurance to travel abroad? Normal travel insurance doesn’t usually cover you if you’re also working and as far as I can see, work abroad insurance only usually covers you when you’re an employee.

- What are the options for medical insurance? I have an EHIC, but understand this only covers approximately 70% of medical expenses and does not include repatriation costs etc.

Being self-employed and contracting abroad is all completely new to me, so I’d be very grateful for any information anyone can offer please.

[NotAllThere]

Most people on this board are not sole traders. They work through limited companies, or umbrella companies, since you cannot work as a sole trader via an agency.

You really need professional advice, and that can be quite complicated when it involves working overseas.

IR35 doesn't apply to sole traders - what you have to be sure or able to demonstrate, it that your relationship to your client is not one of employment.

Simplest is to be paid directly into your account. Cheapest is to have the money paid into a Euro account and then convert it in one go. You might be able to use an exchange company, like xe.com or forex.co.uk to get a lower rate. There's a recent thread about being paid in Euros - search for it.

You can health and travel insurance as a self-employed business traveller.

For your PI question, why not ask your broker?