If you’re an expat or you’re weighing up the idea of becoming a digital nomad based in sunnier climes, or if you are a foreigner living in another country and would like to do contract work in the United Kingdom, this guide to contracting in the UK from abroad is for you. Find out how to access work opportunities in Britain from another country.

Obtain the right to work

Following Brexit, EU citizens don’t enjoy the same freedom of movement in the UK. Even so, EU citizens and those from other countries around the world can still do contracting in the UK from abroad if they follow the correct processes.

Some people have the automatic right to work in the UK, including British and Irish citizens, those who applied for and received pre-settled or settled status from the EU Settlement Scheme before the Brexit deadline as well as those who applied and are awaiting a decision, people with a family permit from the EU Settlement Scheme, and people who have indefinite leave to enter or remain or the right of abode in the UK.

If you do not have the right to live and work in the UK, you will need to obtain an employment visa and a work permit. If you are self-employed, you will need to apply for this yourself. The type of visa you need depends on the type of work you want to do as well as on your situation. Common visa types include Tier 1 (Exceptional Talent) for senior specialists across various fields, Tier 1 (Investor) for those who will invest at least £2million GBP in the UK, Innovator Visa (for established, experienced businesspeople with viable, scalable business ideas), Start-Up Visa (for those who want to start a business to work in the UK for two years, provided they can support themselves during that period), and the Permitted Paid Engagement Visa (for people seeking short-term paid work for a month at most).

If you are employed, your employer will need to apply on your behalf. Either way, the application and approval process can take up to three months. 

Become legally compliant

As an overseas contractor who’s looking at a contract in the UK from abroad, you may find that tax in the UK is more complicated than you thought it would be. In 2021, IR35 off-payroll legislation changes were extended to the private sector, and these changes mean you will need to do additional admin to remain legally compliant. 

If the law deems you as ‘inside IR35,’ you will need to pay the same tax as an employee. A wide variety of factors determine whether you’re inside or outside IR35, so it’s best to contact HM Revenue and Customs if you’re unsure. 

A potentially easier approach is to operate through a payroll partner or umbrella company. This sees you become an ‘employee’ of the umbrella company, which will handle your contributions, national insurance, pension, and taxes. If you aren’t a UK taxpayer and/or don’t work for an umbrella company, you don’t need to worry about IR35.

Look for relevant job opportunities

When contracting in the UK from abroad, you can work for the private sector and/or the government. There’s an urgent shortage of professionals across various industries in the UK, and this shortage means good opportunities are available for skilled contractors. 

The UK’s Official Shortage Occupation List includes a variety of career paths in which you as a contractor can qualify for a Skilled Worker Visa and access a range of employment possibilities. Among them are jobs in health services, social care, engineering, and IT and technology. When applying for contracting work in the UK, self-employed professionals can register with recruitment agencies, approach companies directly, or sign up to job boards that offer daily job ads.

Sign up for a sole trader account with Moneycorp

Foreign exchange is essential for people contracting from abroad as it allows them to convert earnings into their home currency, hedge against exchange rate fluctuations, and efficiently manage international cash flow and expenses. With Moneycorp, sending and receiving payments and converting currency becomes seamless and secure.

If you are successful in contracting in the UK from abroad, you will need a convenient, secure, and low-cost way to be paid by your clients. With a Moneycorp multi currency account, you can receive payments in GBP and a wide variety of other currencies securely and conveniently. Sign up for a sole trader account with Moneycorp to enjoy competitive exchanges rates and low fees when you convert your earnings.