How Could Brexit Impact On UK Contractors Working In The EU?

by Liz Seyi Digital marketing manager

Are you all sick of hearing about Brexit yet? Yes, we’re afraid we do have to mention it again, lest there be any assumptions that it has effectively ‘gone away’ as an issue since the UK and the EU agreed in April to extend the Article 50 process until 31^st October.

That news meant the UK did not end up leaving the EU without any deal at all, as would have been a legal reality otherwise. There is still, of course, a risk of that coming to pass later in the year.

But in the meantime, what do British contractors seeking out a Payroll Vendor In Belgium, France, Germany or another EU country need to be aware of when it comes to the likely impact of Brexit on their overseas work?

For now, it’s still ‘business as usual’ for Brits contracting abroad

The extension of the Article 50 process means that from now until the autumn, normal life carries on for UK contractors working in the EU, due to Britain’s continuing membership of the European Union. But even if the country does find itself in a ‘no-deal’ Brexit situation later this year, certain aspects of contracting in the EU as a Briton aren’t expected to change much.

One of those factors is tax, which is thought highly unlikely to go up for such contractors, given that they should still be taxed at the level of the country in which they are working.

The situation with ‘double taxation’ – the phenomenon of finding oneself subject to paying tax in two countries at the same time – is slightly less certain. The UK presently holds a double taxation treaty with each member state of the EU, but also with the majority of countries outside the EU. This means contractors shouldn’t expect too much to change in this regard, whatever occurs with Brexit.

But there could still be some greater barriers

Will it remain as easy as it is now for British independent workers to acquire contracts in the EU post-Brexit? This will depend hugely on whether freedom of movement and freedom of work carry on post-Brexit, which – amid ongoing negotiations in the UK between the ruling Conservative and opposition Labour parties – is amazingly yet to be determined.

If the right to freedom of movement within the EU ceases for British contractors, it is likely that they will require work visas to keep on operating in the EU. This could bring some practical and financial complications, not least the need for a company to sponsor the visa and then employ the contractor.

Should this come to pass, it may hamper the financial viability of Britons contracting in the EU. But again, much uncertainty still prevails as to exactly what conditions could be expected after Brexit, especially given the House of Commons’ repeated rejection of the Withdrawal Agreement previously reached between the UK and the EU.

Talk to our team about how we can address your concerns

So, if you are a British contractor seeking out the services of a payroll vendor in Belgium, Holland, Spain or elsewhere in the EU, the current situation can be described as ‘as you were’.

Nonetheless, as the Brexit saga continues to evolve, we can continue to advise you here at Link Global Management, including by proposing the solutions that will enable you to make the most of your life as an international contractor long after Brexit.

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Created on Jul 22nd 2019 00:40. Viewed 250 times.

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