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 Service Supplier visa. You apply for this visa 3 months before departure.
• You must have a valid passport. A Dutch ID card is not accepted. 
• 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 pay your costs 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. 

You need an Electronic Travel Authorisation (ETA) for your trip to the UK. You apply for this travel authorisation before your departure to the UK. Do this online via the UK ETA app or the UK government website. An ETA costs £10. 

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 has published 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?

Do you provide services to businesses in the UK? As a rule, you charge your customer the UK VAT rate. This is determined by the customer’s place of supply of services.

Usually, your UK customer pays the UK VAT. This is known as reverse charge VAT. You should then include your customer’s UK VAT number on your invoice, along with the text ‘reverse charge VAT’. Your customer calculates the UK VAT and pays it to the UK government.

Do you provide services to UK private individuals, consumers? If so, the following VAT rules apply: 

• You charge Dutch VAT when you supply services to private individuals from the Netherlands.
• You charge UK VAT when you travel to the UK yourself and supply services to private individuals there. To do this, you must register your business for VAT in the UK. You must show UK VAT on your invoice and pay it to the UK government.

You can ask for help from a UK agent, a fiscal representative. They will arrange and pay VAT in the UK on your behalf. Then you do not 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 a form to the UK government to avoid paying double income tax. Fill out the form yourself or ask your accountant for advice.

National Insurance contributions

As a self-employed professional from abroad, you do not pay National Insurance in the UK. This is on the condition that you carry out your work mainly in an EU Member State – for example, in the Netherlands – and that you are working in the UK on a temporary basis. An A1 certificate proves that you pay social security contributions in the Netherlands. Read more about national insurance contributions (UK government).

IR35: rules for payrolling

There are also self-employed professionals working in the UK as freelancers through a payroll companyt. The UK government has rules for working via payrolling to prevent payrolling clients and contractors from avoiding 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. Make sure to contact your insurer if the date is almost due.

To make sure you have all the latest information, visit this page on the Netherlands Worldwide website. 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.