Working in the UK as a self-employed professional

Travelling to and staying in the UK

• To work in the UK temporarily, you need a Temporary Worker visa. You apply for this visa 3 months before departure.
• You must show that you have a minimum of £1,270 in your bank account to support yourself.
• You must have a Certificate of Sponsorship, which is a registration that your client must arrange in the UK. You are given a registration number, Yiu need this number for your visa application and it is valid for 3 months.
• If your client agrees to support you and reports this when applying for your Certificate of Sponsorship, you do not have to have at least £1,270 in your account. Your client must also confirm that you will not be applying for benefits in the UK.
• When travelling with your own car, you need a valid green insurance card. You must have this with you.
• British customs has information on what personal possessions you may take with you. 

Professional qualifications

The experience or knowledge someone needs for a particular profession is called a professional qualification. The Trade and Cooperation Agreement (TCA) between the EU and the UK states that both parties will make agreements on accepting each other's professional qualifications. Those agreements have not yet been made. So, as a foreign self-employed professional you must follow the UK rules for this. 

The British government haspublished a list showing which professional qualification you need for which services. It also tells you which organisation you need to be with.

Should you charge VAT?

The default rule for supplying services to UK businesses is that you charge the UK VAT rate, but this depends on the customer’s Place of supply of services. When providing services to private individuals, charge the Dutch VAT rate.

In most cases, you can have your UK customer pay UK VAT on your behalf. To do so, include your customer's UK VAT number on the invoice, along with the phrase ‘reverse charge mechanism’. Your customer will then pay UK VAT in the UK.

If you supply services to UK individuals from the Netherlands, you charge Dutch VAT. If you provide these services in the UK, then UK VAT applies. You then register yourself for VAT in the UK. You charge VAT to your UK customer and pay it to the UK government.

Another possibility is that you ask for help from a UK agent, a fiscal representative. They will arrange and pay VAT in the UK on your behalf. You do not then register your company in the UK. Discuss with your accountant or bookkeeper whether this is wise and how to go about it.

Want to know more about VAT when doing business with the UK? Then contact the KVK Advice Team.

Avoid double income tax

If you earn money from employment or make profits as a self-employed professional in the UK, you have to pay tax on that income. However, you also pay income tax in the Netherlands. To avoid situations in which people pay double income tax, the UK and the Netherlands have signed the Double Taxation Agreement. You have to submit forms to the UK government to prevent paying double income tax. Fill out the form yourself or ask your accountant for advice.

National Insurance contributions

The UK has National Insurance. Everyone pays National Insurance (NI) premiums, which entitles them to various benefits such as a pension, unemployment benefits, and maternity pay. Self-employed professionals also have to pay NI contributions.

The British government does not require all self-employed professionals to pay NI contributions in the UK, provided that they mainly work in an EU member state (such as the Netherlands) and are only working in the UK temporarily. With an A1 certificate, you can prove that you already pay the Dutch equivalent of NI contributions in the Netherlands.

IR35: rules for payrolling

There are also self-employed professionals working in the UK as freelancers through a payroll arrangement. The UK government has rules for working via payrolling. With this, they want to prevent clients and contractors through payrolling from not paying compulsory taxes. Such as National Insurance and income tax, similar to Dutch payroll tax.

These off-payroll working rules are also called IR35. It should be clear that you are self-employed. Are you working as an employee? Then the client will deduct National Insurance and income tax from your pay. Use the UK government's online tool to check whether or not you are an employee.

With payrolling, you find your own client in the UK, but the payroll company pays your salary. You are not registered with KVK as a self-employed professional and do not have a VAT number. The payroll company sends the invoice to your client. They arrange between themselves who pays UK VAT.

What to arrange with UK customs

Suppose you get a contract for a photo shoot in London and bring your photo equipment along for the shoot. In this case, you should apply for Temporary Admission with UK Customs, as you will also be taking your equipment back to the Netherlands. The ATA Carnet is an easy way to apply for temporary admission. You can request an ATA Carnet from KVK.

If you plan to sell goods in the UK, you have to formally import them and export them from the Netherlands. You will have to pay import duties and VAT on these goods in the UK.

Applying for licences

You do not usually need a licence to supply services in the UK. There are, however, some exceptions, such as if you work in asbestos removal or as a teacher. In both of these cases, you will have to request a licence from the UK government.

Insurance

You must have basic health insurance in the Netherlands. If you fall ill while working in the UK, your Dutch insurer will not automatically cover costs outside the EU. The UK and EU have included agreements in the TCA that entitle you to emergency health care during short stays in the UK. You may use the European Health Insurance Card (EHIC) in the UK until its expiration date, which you can find on the back of the card.

To make sure you have all the latest information, visit this page on the website of the Dutch Government (in Dutch). You can also check with your own insurer to see if your health insurance provides coverage outside the EU. It can also be wise to check whether your other insurance policies provide UK coverage.