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1st Option Services: Overseas

Supplying Services Across Europe

It is necessary for companies to ensure that a worker undertaking the supply of services abroad is legally entitled to work in that Country. Work permits are usually not required if the services are supplied within within the EU. Often this type of work is sourced via a UK Agency.

There is increasingly more consistency across Europe. As a guide, if an employee is working abroad on behalf of the company for longer than six months, they may become liable to that countries tax and national insurance regime. If the period abroad is initially less than six months, but then extended past six months then the liability may be backdated to when the employee began working in that country. The company may also be required to establish a local PAYE scheme and Corporation Tax scheme if it is deemed that a branch has been established.

Whilst working abroad the worker is likely to remain UK resident and therefore liable to UK Tax and National Insurance. Usually the tax paid in one European Country can be of set against that paid in another. It is not always possible to avoid paying double National Insurance but where applicable would be reclaimed by the completion of an E101 Form before departure.

If the company plans to trade in various European countries, then it is quite possible that a worker undertaking short term projects in several different countries might not be liable to Tax and National Insurance in any country other than the UK.

A Company employee working outside of the European Area will usually need to obtain a visa to work.



Non UK Residents


This section is designed to assist Non-UK Residents who are considering setting up in business in the UK.

Often Non-UK Residents seeking to establish a UK business will initially source their work from a UK Agency. We usually advise Non-Residents to delay setting up a UK company until they have a clear idea as to their career plan. The UK Anti Money Laundering Requirements can be quite an obstacle as it is necessary for you to prove a permanent UK residential address.

As an individual you will become "resident" in the UK, once you have been here for six months, or immediately if you anticipate being in the UK for more than six months. Resident means "liable to UK Income Tax and National Insurance".

 

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