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Sam
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Category: Tax
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I am due to start a 9 month contract with the UN, working

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Hi, I am due to start a 9 month contract with the UN, working remotely from the UK. I will be an independent international contractor so not exempt from UK tax. Should I do a self assessment or set up a limited company to get paid/pay tax that way? Any advice much appreciated!
JA: Have you talked to a tax professional about this?
Customer: No
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: I don't think so, I'm a UK based tax payer

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

You cannot be a limited company as very much still an employee so will have to just do self assessment after completing form P85 when you depart from the UK

Link herehttps://www.gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85

But you will remain liable to UK tax throughout this posting

Thanks

Sam

Customer: replied 18 days ago.
Sorry I think I worded it badly... the job is based in Finland but I shall be working in the UK. Presume the same advice applies though?
The UN considers me a contractor not an employee. Does this make a difference?

Hi

The same answer applies (as you are not out of the Uk for more than a full tax year so you will rmein liable to tax in the UK) and you still cannot be a limited company or a contractor there are strict guidelines on this as determined by HMRC and employment law - see the link here that advises further and also allows you to use the tool which will come up with a decision based on how you carry out the work etc But were it not for the UN you would not be going to Finland to work directly in this capacity which fundamentally makes them your employer and you are answerable to the UN not the position to which you will hold - and not financially responsible for any mistakes made and are representing the UN not yourself "!

see here the employment status tool

https://www.gov.uk/guidance/check-employment-status-for-tax

Thanks

Sam

Customer: replied 17 days ago.
Thanks. So essentially I just need to submit a self assessment for the tax year as a sole trader? Is there any implication of being paid in US dollars? Do I need to use a particular currency conversion rate etc?

Hi

Only if you are deemed to be self employed you cannot (as advised above) choose to be self employed so please do adhere to the legislation

As you now have anew question on a new topic this needs to be listed as such please

Thanks

Sam

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