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UK: Working Remotely From Another Country
In recent years (and unmistakably since 2020), we have witnessed the evolution of the modern workplace.
As the world returned to normal in the wake of Covid-19, we’ve continued to see a major uptick in numbers of remote workers, contractors, freelancers and digital nomads.
This sea change may have led you to ponder the question: can I work remotely from another country too?
Maybe you’re an IT contractor or self-employed IT pro and you’re wondering how to become a digital nomad. Or perhaps you work for a UK employer and would relish the opportunity to move abroad and keep your existing job.
In this article, we will look at the range of remote work options available to freelance IT and tech pros keen to move from the UK to live and work in the EU.
What’s more, we’ll explain how Hightekers can help you make a smooth transition to working remotely from another country – retaining all the benefits of being an employee whilst still operating independently as an IT contractor or freelancer.
Let’s dive in!
Can I Work for A UK Company And Live Abroad?
Most UK employers are reluctant to employ a member of staff outside the UK unless you are (for example), an IT contractor or you’ve set yourself up as a limited company.
That said, it’s not impossible and a UK contract can be issued to a member of staff based in the EU. The downside is that it’s rarely black and white and there will be obstacles to overcome for both parties.
Tax Liability
Tax is a common stumbling block. As an employee that doesn’t reside in the UK, there is no tax liability for you (the employee) or the company you’re working for.
It is feasible for an employer to run payroll and pay staff outside the UK on an NT (No Tax) code. However, the HMRC guidance around this is unclear.
Guidelines suggest employers must determine if a worker is an employee, even though this status might not carry weight in another country where local laws also apply. On top of this, proving an employee is managed directly can be challenging without their physical presence in daily business tasks.
As a result, foreign workers are often seen as self-employed meaning they aren’t considered employees either in the UK or their country of residence. In this scenario, you would be responsible for paying taxes for yourself *and* your remote employer under the banner of a self-employed IT consultant.
So, while it is technically possible, the process of working for a UK company abroad causes more issues than many employers (and sometimes workers) are prepared to deal with.
Is there a way around it?
Thankfully, the answer is yes. One solution available to you is to use a management company like Hightekers as an intermediary. This means you have a legal contract with your UK employer allowing you to work from another country, without the headache of taxes and legalities.
If this sounds interesting to you, keep reading. We will explain more below.
How can EU Citizens apply for fully remote jobs in the UK?
Let’s imagine you’re an IT contractor based in Spain, Italy, France, Portugal, or another EU country. You want to apply for a fully remote job advertised in the UK but you’re not sure if you can or how it works from a legal perspective.
This is where the support of a management company like Hightekers comes in.
We can help you keep your status as a contractor or self-employed IT consultant, while legally working for a UK company and enjoying all the perks that come with it.
The process involves two key agreements:
- The Management Company and the UK Employer: Hightekers will hold the contract with your UK-based employer.
- The Contractor and the Management Company: The IT contractor (that’s you), will have a contract with Hightekers enabling you to carry out work for the UK employer.
Suffice to say there are significant benefits to this set-up.
Firstly, you won’t need a visa to work, and you won’t have to worry about the hassles of completing a UK tax declaration.
Additionally, you won’t face double taxation since you will be officially employed through Hightekers and have a local contract in place. This means you will only be taxed at the rate set within your country of residence.
Benefits of working with a management company
There are many benefits to working with a management company like Hightekers, including:
- No more time-consuming international paperwork. We do it all for you.
- Health insurance is included in your employee benefits ensuring you have cover where you are based.
- Our management system lets you work with UK companies and expand your client reach from outside your local region.
- Our contract with you ensures all legal requirements for working abroad are met.
- No more tax hassles. Our remote workers’ pay tax only in their local country.
For instance, if you are an IT contractor in Spain and you join Hightekers, you’ll enjoy all the benefits of being an employee while keeping your self-employed freedom.
You’ll also receive tailored support from industry experts to help find new contracts or negotiate terms. Plus, we handle all the paperwork – tax, insurance, invoicing, fee collection, and project-related expenses.
This means you can stay focused on your work and grow your freelance IT business with our support.
Do you need a visa to work remotely for a UK company ?
No, if you are entirely remote and not physically working in the UK, you will not need a visa or work permit to work for any UK-based company.
This only gets complicated if you need to visit the UK for any activities relating to your contract. In this scenario you should seek advice and assistance from our team.
Working in The UK for A Overseas Employer
Much like working overseas for a UK employer comes with its challenges, the same complexities arise for IT contractors and tech pros in the UK who are keen to work with foreign employers.
Issues such as taxation and establishing your employee status without being physically or virtually present can become tricky. Since you are completing the work from within the UK, HMRC will seek to tax the income you receive, potentially leading to double taxation from the country where your employer is based.
In short, while it is certainly possible to work for an overseas employer from the UK, it can be a highly complex process.
Engaging a management company as an intermediary simplifies the process significantly.
Working with Hightekers means you can access a raft of employee-style benefits, plus we handle all the tax issues, paperwork, invoicing, and other administrative tasks.
Can an overseas company employ an IT pro in the UK ?
In theory, yes. But, just as employers in the UK are reluctant to employ remote staff based in the EU, the same applies in reverse. Tax issues and other employment status barriers are still present.
Is foreign employment income taxable in the UK ?
If you are a UK resident, you usually must pay tax on any income you earn abroad. This applies to both Ltd companies and Sole Traders. For Sole Traders, this income needs to be reported in your self-assessment. For Ltd companies, it’s part of your corporation tax.
One of the biggest issues with earning money from a foreign employer is that you might be taxed twice. This does depend on the tax laws of that country and any agreements it has with the UK. Where agreements between the UK and local countries are in place you may be able to apply for a tax refund.
Dealing with income tax on foreign earnings can be tricky for independent IT consultants. To make life easier, our team can handle everything for you, from paperwork to contract negotiation and PAYE.
With Hightekers, all your work is done under the protection of a local contract removing taxation headaches for contractors and self-employed IT pros.
Leaving The UK to Work Remotely from Another Country
Moving and working abroad can feel a little perplexing. You might wonder if you need a job or a permit first. For EU citizens, it’s simple – you can move between EU countries without special paperwork.
But for non-EU nationals, like UK workers, it’s harder. For example, if you’re moving to Spain, you must first get a national identity card (NIE). If you want to work remotely and stay longer than 90 days, you’ll need to deal with a lot of paperwork.
Benefits of management companies for UK IT freelancers working abroad
There’s no doubt working remotely from another country is more complex than it appears on the surface. First there’s the mountain of paperwork. Then there are the different tax and employment laws, meaning you might have to pay taxes both in the UK and the country you’re working from.
Many IT contractors and self-employed professionals use management companies like Hightekers to help with all this. We act as your employer, handling all the convoluted paperwork, providing you with support and ensuring you have access to employee benefits.
We also take care of payroll, invoicing, and tax.
Using our services is quicker, cheaper, and far more accessible than tackling the process on your own.
Navigating Visas and local paperwork
Since Brexit, UK citizens no longer have an automatic right to live and work in the EU, which means a little more paperwork and planning before heading off.
Work Visa
Wherever you are planning to go, you will almost certainly need a work visa and the process and entry requirements will vary from country to country.
To add an extra layer of complexity, if you want to apply for a work visa, you will usually need to have secured a job before applying for one. Other options are available to you though.
Digital nomad visa
The digital nomad visa lets you work in a few specific countries in exchange for an application and permit fee. It lasts for twelve months, and you can renew it for up to three years. You also need to show you have a regular income from within that country.
Not all places accept this visa, so be sure to do your research before you apply.
At Hightekers, we make the process of getting a visa as easy as possible. We handle all the paperwork and contracts, so you don’t have to worry about your work visa requirements.
When you use our services, we take care of everything related to your job, no matter where you or your employer are located.
Insurance & working remotely from another country
As well as understanding the local employment laws and tax rules for your region, you’ll also need to have the right business insurance for your work when working remotely from another country.
As an IT contractor or freelancer, you are responsible for your work and any potential liabilities. Insurance is crucial to protect your business from disruptions and costly claims that might result from disputes.
Another great reason for using a management company like Hightekers, is that you can focus on freelance IT projects knowing you are fully insured against any possible disputes while working under a contract managed by us.
How to find work abroad when you are a UK-based IT contractor?
Finding work abroad as a UK citizen is simple with a management company like Hightekers.
We make it easy for both you and your employer. You don’t need to build your own business model in the country you move to, which is a huge help if you’re new to the area, or don’t speak the language. As an IT freelancer, you just find the project and we’ll handle the rest. We’ll adjust your rates to match the local market and manage your contracts and paperwork.
In the past, UK citizens who went freelance needed to become contractors or create a Ltd company to work abroad. Now, freelance IT pros can stay as they are without changing their business status. We can also help with visa requirements, sponsorship details, and finding the best tax package for you.
When you live in a country (in the UK or Europe) for six months or more within a calendar year, you become a tax resident there. This means you could have to pay taxes both in the UK and the country you’ve moved to.
For your UK contractor clients, hiring you through a management company is much simpler, as they don’t need to handle local payment laws or international bank transfers. This makes the process easier and more transparent for everyone involved.
Moving to The UK As An IT Freelancer
What are the legal requirements to live and work in the UK ?
In the wake of Brexit, new requirements have been put in place for European citizens who want to work or study in the UK.
Anyone moving to and working in the UK now needs to meet a points-based immigration system. This system focuses on your skills and talent. Additionally, some checks are required, such as police and criminal background checks.
The UK Government has laid out application guidance for the UK points-based immigration system.
Can an IT freelancer get a UK work visa without a job offer?
Anyone outside the UK applying for a skilled worker visa will need to provide proof of the following:
- A job offer from a Home Office-licensed sponsor at the required skill level
- A relevant minimum salary threshold by your sponsor (typically £26,500 or the going rate for their particular job, whichever is higher)
- English language at the intermediate level at B1 (on the Common European Framework of Reference for languages)
You can visit the UK without a work visa for up to six months to visit friends, family, or for short term study and job interviews. However, once you have secured a job offer, you need to go through the immigration process to secure a permanent work visa.
Luckily we are an official “worker visa sponsor” and we can help you with your visa paperwork. Just contact us for more information!
Hightekers : the hassle-free solution for your UK move
If you are planning to move to the UK, a management company like Hightekers can make the whole process easier for you.
As an established management company operating in the IT and Tech space, we assist you with everything, from applying for a work visa to ensuring you comply with IR35 regulations.
Once you are set up with us, we act as your employer, providing you with all the benefits of direct employment while you enjoy all the freedoms a freelance IT career can bring.
