Work remotely for UK company, live is Spain
#1
Just Joined
Thread Starter
Joined: Jul 2019
Posts: 11
Work remotely for UK company, live is Spain
Hi all,
I'm self employed (one-man-band limited company) in the UK with a long term contract with a UK Client. My wife and I (both Spanish) are planning to move to Spain as soon as possible. I spoke with the UK Client and they have agreed to let me work remotely from Spain but they want to understand how the arrangement will work. I have read many posts from this forum (thank you all!) but I still have questions, perhaps due to the complexity of the arrangement.
The current arrangement is as follows:
My UK Ltd company invoices an Agency contracted by the UK Client, where I undertake my work. The UK Client pays the Agency, the Agency pays my UK Ltd company and my UK Ltd company pays me. I take salary and dividends from my company.
So far, I have come up with these options:
1. I register as self-employed in Spain and bill my UK Ltd company.
2. I register as self employed in Spain and bill the Agency.
3. I register as self employed in Spain and bill the UK Client (they might be happy to do that and not going through the Agency).
4. I become a permanent employee and the UK Company registers on the Spanish Social Security register. This option is very unlikely as I will be the only employee in Spain.
5. Use an Employer of Record company (i.e. ShieldGo, Velocity Global) which will take care of contract, taxes, social security, etc. I'm not sure of the cost of this option and whether the EoR would invoice my UK Ltd company, the Agency or the UK Client.
I will much appreciate you comments on these options. Many thanks.
Eduardo
I'm self employed (one-man-band limited company) in the UK with a long term contract with a UK Client. My wife and I (both Spanish) are planning to move to Spain as soon as possible. I spoke with the UK Client and they have agreed to let me work remotely from Spain but they want to understand how the arrangement will work. I have read many posts from this forum (thank you all!) but I still have questions, perhaps due to the complexity of the arrangement.
The current arrangement is as follows:
My UK Ltd company invoices an Agency contracted by the UK Client, where I undertake my work. The UK Client pays the Agency, the Agency pays my UK Ltd company and my UK Ltd company pays me. I take salary and dividends from my company.
So far, I have come up with these options:
1. I register as self-employed in Spain and bill my UK Ltd company.
2. I register as self employed in Spain and bill the Agency.
3. I register as self employed in Spain and bill the UK Client (they might be happy to do that and not going through the Agency).
4. I become a permanent employee and the UK Company registers on the Spanish Social Security register. This option is very unlikely as I will be the only employee in Spain.
5. Use an Employer of Record company (i.e. ShieldGo, Velocity Global) which will take care of contract, taxes, social security, etc. I'm not sure of the cost of this option and whether the EoR would invoice my UK Ltd company, the Agency or the UK Client.
I will much appreciate you comments on these options. Many thanks.
Eduardo
#2
Re: Work remotely for UK company, live is Spain
Hi all,
I'm self employed (one-man-band limited company) in the UK with a long term contract with a UK Client. My wife and I (both Spanish) are planning to move to Spain as soon as possible. I spoke with the UK Client and they have agreed to let me work remotely from Spain but they want to understand how the arrangement will work. I have read many posts from this forum (thank you all!) but I still have questions, perhaps due to the complexity of the arrangement.
The current arrangement is as follows:
My UK Ltd company invoices an Agency contracted by the UK Client, where I undertake my work. The UK Client pays the Agency, the Agency pays my UK Ltd company and my UK Ltd company pays me. I take salary and dividends from my company.
So far, I have come up with these options:
1. I register as self-employed in Spain and bill my UK Ltd company.
2. I register as self employed in Spain and bill the Agency.
3. I register as self employed in Spain and bill the UK Client (they might be happy to do that and not going through the Agency).
4. I become a permanent employee and the UK Company registers on the Spanish Social Security register. This option is very unlikely as I will be the only employee in Spain.
5. Use an Employer of Record company (i.e. ShieldGo, Velocity Global) which will take care of contract, taxes, social security, etc. I'm not sure of the cost of this option and whether the EoR would invoice my UK Ltd company, the Agency or the UK Client.
I will much appreciate you comments on these options. Many thanks.
Eduardo
I'm self employed (one-man-band limited company) in the UK with a long term contract with a UK Client. My wife and I (both Spanish) are planning to move to Spain as soon as possible. I spoke with the UK Client and they have agreed to let me work remotely from Spain but they want to understand how the arrangement will work. I have read many posts from this forum (thank you all!) but I still have questions, perhaps due to the complexity of the arrangement.
The current arrangement is as follows:
My UK Ltd company invoices an Agency contracted by the UK Client, where I undertake my work. The UK Client pays the Agency, the Agency pays my UK Ltd company and my UK Ltd company pays me. I take salary and dividends from my company.
So far, I have come up with these options:
1. I register as self-employed in Spain and bill my UK Ltd company.
2. I register as self employed in Spain and bill the Agency.
3. I register as self employed in Spain and bill the UK Client (they might be happy to do that and not going through the Agency).
4. I become a permanent employee and the UK Company registers on the Spanish Social Security register. This option is very unlikely as I will be the only employee in Spain.
5. Use an Employer of Record company (i.e. ShieldGo, Velocity Global) which will take care of contract, taxes, social security, etc. I'm not sure of the cost of this option and whether the EoR would invoice my UK Ltd company, the Agency or the UK Client.
I will much appreciate you comments on these options. Many thanks.
Eduardo
The "safest" , not necessarily the best option is that you become a direct employee of the company simply being resident in Spain.
Alternatively find yourself more "clients" thereby justifying your situation in the eyes of the authorities.
#3
Just Joined
Thread Starter
Joined: Jul 2019
Posts: 11
Re: Work remotely for UK company, live is Spain
This issue is well-documented in past threads but the key hurdle you must jump is how the Spanish tax Authorities view your proposed situation. They are very tough on the "Self-Employed Single Employer Situation" basically regarding it as a tool by which companies avoid their Social Security liabilities and will therefore pursue action against your employer. Invariably the employer will lose in any labour tribunal judegment.
The "safest" , not necessarily the best option is that you become a direct employee of the company simply being resident in Spain.
Alternatively find yourself more "clients" thereby justifying your situation in the eyes of the authorities.
The "safest" , not necessarily the best option is that you become a direct employee of the company simply being resident in Spain.
Alternatively find yourself more "clients" thereby justifying your situation in the eyes of the authorities.
Many thanks Loafing for your answer. I have been looking for similar questions on this site but could not find specific information related to my situation. Perhaps you could send the links to the questions you're referring to?
With regards to your answer, I was hoping that being an autónomo in Spain and invoicing a UK company would not be a problem. Also, my question was more directed to find the best proposal to present to my current client.
Nevertheless I much appreciate your advice.
#4
BE Forum Addict
Joined: Aug 2009
Location: Costa Blanca
Posts: 3,143
Re: Work remotely for UK company, live is Spain
Again (dare I mention) who knows how Brexit will rock the boat (Bring on Boris) By all means take feedback from here but I think you need professional advice.
#5
Re: Work remotely for UK company, live is Spain
Hopefully you are aware of IR35? https://www.gov.uk/guidance/ir35-find-out-if-it-applies
#7
Just Joined
Thread Starter
Joined: Jul 2019
Posts: 11
Re: Work remotely for UK company, live is Spain
Thanks spainrico
#8
Re: Work remotely for UK company, live is Spain
Hi,
Many thanks Loafing for your answer. I have been looking for similar questions on this site but could not find specific information related to my situation. Perhaps you could send the links to the questions you're referring to?
With regards to your answer, I was hoping that being an autónomo in Spain and invoicing a UK company would not be a problem. Also, my question was more directed to find the best proposal to present to my current client.
Nevertheless I much appreciate your advice.
Many thanks Loafing for your answer. I have been looking for similar questions on this site but could not find specific information related to my situation. Perhaps you could send the links to the questions you're referring to?
With regards to your answer, I was hoping that being an autónomo in Spain and invoicing a UK company would not be a problem. Also, my question was more directed to find the best proposal to present to my current client.
Nevertheless I much appreciate your advice.
#9
Forum Regular
Joined: Mar 2011
Posts: 138
Re: Work remotely for UK company, live is Spain
In my case I work for a company in another European company. I bill them monthly. I am a registered autonomo and pay my seguridad social and taxes.
I work for just one company but have never had any bother re the previously mentioned issues with this. I think the Spanish authorities are more interested in finding Spanish companies who are abusing this law.
I work for just one company but have never had any bother re the previously mentioned issues with this. I think the Spanish authorities are more interested in finding Spanish companies who are abusing this law.
#10
Re: Work remotely for UK company, live is Spain
I have some experience in this area and suggest you should seek professional advice. HMRC have investigated a number of limited companies where the only employee has a long standing contract with only one company. They take the view that this person is not really an independent contractor and should be regarded as an employee. This would create serious issues not only for you but also the company you do work for..
#11
Re: Work remotely for UK company, live is Spain
I have some experience in this area and suggest you should seek professional advice. HMRC have investigated a number of limited companies where the only employee has a long standing contract with only one company. They take the view that this person is not really an independent contractor and should be regarded as an employee. This would create serious issues not only for you but also the company you do work for..
#13
Just Joined
Thread Starter
Joined: Jul 2019
Posts: 11
Re: Work remotely for UK company, live is Spain
Hi all,
I'm self employed (one-man-band limited company) in the UK with a long term contract with a UK Client. My wife and I (both Spanish) are planning to move to Spain as soon as possible. I spoke with the UK Client and they have agreed to let me work remotely from Spain but they want to understand how the arrangement will work. I have read many posts from this forum (thank you all!) but I still have questions, perhaps due to the complexity of the arrangement.
The current arrangement is as follows:
My UK Ltd company invoices an Agency contracted by the UK Client, where I undertake my work. The UK Client pays the Agency, the Agency pays my UK Ltd company and my UK Ltd company pays me. I take salary and dividends from my company.
So far, I have come up with these options:
1. I register as self-employed in Spain and bill my UK Ltd company.
2. I register as self employed in Spain and bill the Agency.
3. I register as self employed in Spain and bill the UK Client (they might be happy to do that and not going through the Agency).
4. I become a permanent employee and the UK Company registers on the Spanish Social Security register. This option is very unlikely as I will be the only employee in Spain.
5. Use an Employer of Record company (i.e. ShieldGo, Velocity Global) which will take care of contract, taxes, social security, etc. I'm not sure of the cost of this option and whether the EoR would invoice my UK Ltd company, the Agency or the UK Client.
I will much appreciate you comments on these options. Many thanks.
Eduardo
I'm self employed (one-man-band limited company) in the UK with a long term contract with a UK Client. My wife and I (both Spanish) are planning to move to Spain as soon as possible. I spoke with the UK Client and they have agreed to let me work remotely from Spain but they want to understand how the arrangement will work. I have read many posts from this forum (thank you all!) but I still have questions, perhaps due to the complexity of the arrangement.
The current arrangement is as follows:
My UK Ltd company invoices an Agency contracted by the UK Client, where I undertake my work. The UK Client pays the Agency, the Agency pays my UK Ltd company and my UK Ltd company pays me. I take salary and dividends from my company.
So far, I have come up with these options:
4. I become a permanent employee and the UK Company registers on the Spanish Social Security register. This option is very unlikely as I will be the only employee in Spain.
I will much appreciate you comments on these options. Many thanks.
Eduardo
Hi all - we are a UK company with a Spanish employee who is looking to return home. Our plan is for him to contact HMRC before he goes and advise he will no longer be tax resident which will give him a NT tax code. He will continue to be paid UK salary but this will now be gross into his UK back account. Our company will then register as a non-resident without permanent establishment company in Spain which will give us a social security number so that we can make social security payments, we will also be registered with a non resident VAT number which we need. We are told the social security office requires a Spanish bank account for auto withdrawal of social security payments, and that can be a employee account set up for that purpose. So UK gross funds will get transferred to this new bank account, tax and social security will come off this and the remainder transferred to the employee Spanish account as pay. We then also need to revise his contract to make sure its compliant with Spanish requirements.
At least that's the plan - if anyone sees a flaw please let me know!
At least that's the plan - if anyone sees a flaw please let me know!