Key takeaways:

1. The EU-UK Trade Agreement has significant implications for international contractors, including changes to visa requirements, compliance with rules of origin, and data protection restrictions.
2. To ensure compliance with the agreement, international contractors may need to take practical steps such as researching visa requirements, reviewing data protection policies, and including jurisdictional provisions in contracts.
3. Understanding the impact of the EU-UK Trade Agreement and taking necessary steps to ensure compliance can help international contractors continue to build successful working relationships with clients in both the EU and the UK.

The Intermediaries Legislation, or IR35 as it is commonly known, is a piece of legislation in the U.K. that aims to tackle what HM Revenue and Customs (HMRC) consider to be 'disguised employment'. This occurs when a worker provides their services through an intermediary, such as a limited company, but would be classed as an employee if this intermediary was not used.

How the EU-UK Trade Agreement Impacts International Contractors: A Comprehensive Guide

If you're an international contractor, you may have been impacted by the EU-UK Trade Agreement that came into effect on January 1, 2021. This agreement has had significant implications for businesses operating between the EU and the UK, and it's important to understand how it affects your work. In this post, we'll break down the key aspects of the EU-UK Trade Agreement and its impact on international contracting, providing practical advice and real-life examples to help you navigate these changes.

What is the EU-UK Trade Agreement?

The EU-UK Trade Agreement is a comprehensive agreement that sets out the terms of trade between the EU and the UK following the UK's departure from the EU. This agreement covers a wide range of areas, including trade in goods and services, intellectual property, and government procurement. It aims to establish a framework for cooperation between the EU and the UK and minimize disruptions to trade.

Free movement of people: Visa requirements and work permits

One of the biggest changes brought by the EU-UK Trade Agreement is the end of the free movement of people between the EU and the UK. This means that individuals working in either the UK or the EU may now need new visa requirements and work permits. For example, if you're an independent contractor based in the UK who previously provided services in the EU without a work permit, you may now need to obtain one.

Customs and tariffs: Compliance with rules of origin

The agreement has provisions for tariff-free trade in goods between the EU and the UK, provided the goods meet certain criteria, and rules of origin are adhered to. These rules and criteria vary depending on the specific goods, which can create complexities for international contractors. For example, if you're providing services that involve the movement of goods across the EU-UK border, you may need to ensure compliance with these rules of origin.

Data protection: Restrictions on data transfers

The EU-UK Trade Agreement also includes provisions related to data protection, including restrictions on data transfers from the EU to the UK. This can impact international contractors who work with clients based in the EU, as they may need to ensure compliance with these provisions to avoid any legal issues related to data protection.

Legal jurisdiction: Enforcement of contractual obligations

The agreement sets out the jurisdictional rules for legal disputes between businesses in the EU and the UK. This can impact international contracting agreements and the enforcement of contractual obligations. For example, if you're a UK-based contractor who provides services to a client in the EU and a legal dispute arises, you may need to ensure that the contract includes provisions related to legal jurisdiction.

Practical steps for compliance

To ensure compliance with the EU-UK Trade Agreement, international contractors may need to take a range of practical steps. These can include:

• Researching visa requirements and work permits for both the UK and the EU
• Ensuring compliance with rules of origin for goods being traded between the EU and the UK
• Reviewing and updating data protection policies and procedures to ensure compliance with the EU-UK Trade Agreement
• Including jurisdictional provisions in contracts with clients in the EU or the UK

Wrapping up

The EU-UK Trade Agreement has significant implications for international contracting between businesses in the EU and the UK. By understanding how this agreement affects your work and taking the necessary steps to ensure compliance, you can continue to build successful working relationships with clients in both the EU and the UK. Don't let these changes catch you off guard – stay informed and take action today to ensure your business stays on the right side of the law.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo.