employing non-UK freelancers

[apanda00]

Hi!

This is my second thread here so forgive me if I say something silly
When I have more work to get done and I can't handle it all by myself I'd like to collaborate with freelancers. I can't always find freelancers in the UK and I know someone from abroad (EU and not EU). I was wondering: how can I make sure they are really freelancers and is there anything I should be aware of, from the point of view of taxes and labour law? I've read a thread about freelancers from the UK. You can check whether they are freelancers or not. But how about from abroad? And also, if I am employing them and I'd like to enforce an agreement on the terms of provided services, how can I make sure that it is valid in their country too?

Any suggestion is welcomed

 

[SteveHa]

As the engaging party, your responsibility goes as far as checking their employment status. Use HMRC's ESI (https://www.gov.uk/guidance/check-employment-status-for-tax).

If they are non-resident and non-domiciled and the ESI says they're employed, they need to contact HMRC for an NT tax code.

As far as NI goes, they can provide a certificate from their home country to say that they are paying there.

Of course, if the ESI says self-employed, no worries.

 

[Gecko001]

You are probably best to use one of the big freelance agencies such as elance to hire freelancers from abroad. It saves hassle and gives you certain amount of protection regarding the legitimacy of the freelancer etc.

As far a I can see there are no tax problems with hiring freelancers living outside the UK or EU. You just pay them and let them take care of the tax they pay in their own country. Sometimes the authorities in certain countries will want to have documentation from you confirming that the money you are sending the freelancer is for what the freelancer says its for, but apart from that I have not come across any problem.

 

[apanda00]

As the engaging party, your responsibility goes as far as checking their employment status. Use HMRC's ESI

If they are non-resident and non-domiciled and the ESI says they're employed, they need to contact HMRC for an NT tax code.

As far as NI goes, they can provide a certificate from their home country to say that they are paying there.

Of course, if the ESI says self-employed, no worries.

Sorry for my late reply, I've been overwhelmed by work. Thanks for this! So basically if they are British abroad ESI can provide a tax code and if they are from abroad they have to send me a document proving they are registered in their own country and paying taxes? Or am I getting it totally wrong?

You are probably best to use one of the big freelance agencies such as elance to hire freelancers from abroad. It saves hassle and gives you certain amount of protection regarding the legitimacy of the freelancer etc.

As far a I can see there are no tax problems with hiring freelancers living outside the UK or EU. You just pay them and let them take care of the tax they pay in their own country. Sometimes the authorities in certain countries will want to have documentation from you confirming that the money you are sending the freelancer is for what the freelancer says its for, but apart from that I have not come across any problem.

I know those but I can't easily find help on those websites –the quality level of their service is not my standard. I\'ve used them for things that aren't inherent to the services I offer as a freelancer. But perhaps I should simply skim through all profiles in a moment of quietness and find someone suitable for future collaborations. It's a great advantage to be fully covered by the website, I agree.


I thought the way you do about letting them handle things but then my friend who is a lawyer in Italy told me that I could be sued for not having contributed to pensions and for not having hired the person full-time and I have to be aware of the risks etc etc etc and I got very scared :O

 

[Newchodge]

It all depends on whether you are employing them or whether they are providing you a service. In the UK the ESI will help you understand whether the people you are working with are employees or contractors. It has less relevance for people domiciled in other countries.

 

[Daryl Charman]

Hi!

This is my second thread here so forgive me if I say something silly
When I have more work to get done and I can't handle it all by myself I'd like to collaborate with freelancers. I can't always find freelancers in the UK and I know someone from abroad (EU and not EU). I was wondering: how can I make sure they are really freelancers and is there anything I should be aware of, from the point of view of taxes and labour law? I've read a thread about freelancers from the UK. You can check whether they are freelancers or not. But how about from abroad? And also, if I am employing them and I'd like to enforce an agreement on the terms of provided services, how can I make sure that it is valid in their country too?

Any suggestion is welcomed

The suggestions above are spot on. However, I'd personally recommend using a UK based one. Although I'm a tad biased, as you'd expect from my profession

What kind of work were you looking to outsource?

 

[ethical PR]

I can't believe you can't find freelance designers in the UK - there are thousands of them.