There is little more exciting in the contracting life than to be offered the opportunity to work abroad. The thrill of experiencing another culture, from inside work and out, the chance to explore a new land in your downtime, and the benefit of more clement weather (depending on where you work) provides experiences beyond a normal urban office block.
Contracting abroad isn’t as simple as merely accepting an assignment, booking a flight and packing your bags. You cannot use your own UK limited company and in some countries you will have to be registered under license for tax purposes. Where and to whom should you pay tax? How will you get paid? Are you aware of double taxation? Without expert help it’s all too easy to pay too much tax or fall foul of another country’s tax regime.
Understanding the tax laws of the foreign country you’re contracting in is never easy. Every jurisdiction operates its own tax system and misunderstandings can prove costly.
You may will encounter double taxation – having tax levied on your income in your home jurisdiction and also the country where you have performed your contract. However, there could be a double taxation treaty operating between the UK and the country you’re thinking of contracting in. This would allow you to lessen your liabilities, but knowing which countries this applies to and how to benefit from an international treaty is not something every contractor has knowledge of.
For the moment, working within the EU carries the benefit of not needing to apply for a visa. Working outside of the Europe can necessitate the requirement for a working visa, even if a contract is only for a short period. Brexit has made UK contractors even more appealing thanks to the drop in the pound and opportunities have opened up over the last few years that were not there previously.
Liberty Bishop has been guiding, advising, and managing the tax affairs of contractors across the globe for over two decades. We hold the necessary licenses to allow contractors to work effortlessly across Europe and we handle the complications associated with invoicing in different currencies.
Liberty Bishop services are tried, tested and fully compliant in a multitude of countries from Europe and beyond. We have assisted thousands of contractors who’ve chosen to take up assignments in distant lands and we have the expertise to help you. Sensible contractors don’t bother themselves with the troublesome ins-and-outs of international tax legislation, they trust in the expertise of a payroll solution provider with the experience to ensure that, wherever you perform your contract, your tax is deducted in the right place, at the right time, maintaining your international compliance, and with as little impact on your take-home pay as possible.