UK small business employing contractor in Sweden

[bob2019]

Hello!

I run a small business of 4 employees and one of them is moving to Sweden, they are still a British citizen but are currently applying for a 'Person Number' so that they can pay tax etc in Sweden.

We want to continue to employ them but I understand that is not possible as a standard employee. Therefore I want to draw up a contractor agreement. I have contacted a couple solicitors but they dont want to get involved because they only deal with UK law and the agreement would be subject to UK and Swedish law.

I'm at a bit of a dead end other than trying to find another solicitor that deals with UK and Swedish law.

Any suggestions or ideas gratfully received!

Thanks

Bob

 

[Newchodge]

I'm at a bit of a dead end other than trying to find another solicitor that deals with UK and Swedish law.

That seems like your best bet.

 

[bob2019]

Thanks Newchodge. I had a quick search on the forum but couldnt find anything similar, but presumably employing contractors abroad is quite common for remote workers.

Does anyone have any general advice for this that might give me a start?

 

[Newchodge]

You need to establish whether you are employing them In the UK, to work from Sweden, or if you are employing them in Sweden, or if they are contracting in Sweden. You can do either under UK law, but you need to establish what you can do under Swedish law. That is an employment law question. You also then need to ensure that the employment/contracting agreement shows the legal jurisdiction involved. It looks as if they intend to be tax resident in Sweden. That may, or may not affect the employment law question.

 

[bob2019]

As I understand it, there is a dual tax implication if they are employed from the UK but living permanently in Sweden, so it would probably have to be a contract. Somone has suggested that I contact The Law Society to get a list of UK solicitors that also have a Swedish branch.

 

[Newchodge]

I would have thought we had a double taxation treaty with Sweden.

 

[bob2019]

I have spoken with HRMC and it may be possible for them to remain employed but on an NT (No Tax) code and X NIC code so that they are paid Gross of any tax etc each month and then they are responsible for their Tax declarations etc in Sweden.

I will investigate this on both sides and post the final outcome here as no doubt other people will have a similar question in the future.