Can EU Citizens Freelance for a UK Limited Company?

As an EU citizen, you may be wondering whether you can freelance for a UK limited company. The answer is yes, EU citizens can indeed work as freelancers for UK limited companies. However, there are a few important considerations to keep in mind.

Firstly, it’s important to understand the difference between being an employee and being a freelancer. When you work as an employee, you are typically hired under a contract of employment and receive all the benefits and protections that come with it. As a freelancer, on the other hand, you are self-employed and responsible for managing your own taxes, insurance, and other business-related matters.

When it comes to freelancing for a UK limited company, EU citizens have the same rights and responsibilities as UK citizens. This means that you can legally provide your services to a UK limited company, regardless of your nationality. However, there are a few additional considerations to keep in mind.

1. Brexit and Freedom of Movement

Following the UK’s exit from the European Union, the rules regarding freedom of movement have changed. EU citizens can no longer automatically live and work in the UK without a visa. However, there are still options available for EU citizens who want to freelance in the UK.

If you were already living in the UK before December 31, 2020, you can apply to the EU Settlement Scheme to secure your right to continue living and working in the UK. This applies to both employees and freelancers.

2. Tax and National Insurance

As a freelancer, you will need to register as self-employed with HM Revenue and Customs (HMRC) and file annual self-assessment tax returns. You will also be responsible for paying your own National Insurance contributions.

EU citizens who are living in the UK and freelancing for a UK limited company will need to follow the same tax and National Insurance rules as UK citizens. This includes registering for self-assessment, keeping records of your income and expenses, and paying the correct amount of tax and National Insurance.

3. Business Structure and Legal Requirements

When freelancing for a UK limited company, you may need to consider your business structure and legal requirements. Depending on your circumstances, you may choose to operate as a sole trader, set up your own limited company, or work through an umbrella company.

It’s important to understand the legal and financial implications of each option before making a decision. You may want to consult with a tax advisor or accountant to ensure that you are meeting all the necessary requirements and obligations.

Conclusion

EU citizens can indeed freelance for a UK limited company. However, it’s important to be aware of the changes brought about by Brexit and the need to secure your right to live and work in the UK. Additionally, you will need to register as self-employed, follow the tax and National Insurance rules, and consider the appropriate business structure and legal requirements for your freelancing activities.

Table of Contents

subscription​