My wife is a freelance recruiter in the UK and has been approached by a company based in Belgium to assist with their recruitment needs.
Is there anything she should know about legal regulations, taxes, or any necessary licenses related to this work?
Thanks in advance!
RCadmin
When your wife is working as a freelance recruiter for a Belgian-based company while being based in the UK, there are several legal and tax considerations she should be aware of:
Self-Employment Status: Since she is working as a freelancer, she should ensure that she is properly registered as self-employed in the UK, if she hasn’t already done so. This means she needs to complete a self-assessment tax return and pay the appropriate taxes on her income.
Tax Obligations: She will likely need to declare her earnings in the UK, regardless of where the client is based. She may also want to consult with a tax advisor to ensure she is compliant with both UK and Belgian tax regulations. The UK-Belgium double taxation treaty can help avoid being taxed in both countries.
VAT Considerations: If she is VAT registered, her services may be subject to VAT depending on the type of recruitment services provided. She should research whether she needs to charge VAT on her invoices to the Belgian company, and if so, at what rate.
Employment Law Compliance: She should be familiar with recruitment and employment laws in Belgium, as the recruitment process will need to comply with local regulations. This includes understanding equal opportunity laws, data protection (GDPR), and any other legalities specific to hiring in Belgium.
Licensing and Regulations: In general, the UK does not require specific licenses to operate as a recruitment consultant. However, she should check if there are any specific regulations in Belgium regarding recruitment agencies that she needs to be aware of, especially if she is directly involved in the recruitment activities.
Data Protection: Given that she may handle candidates’ personal data, she must comply with GDPR requirements for data protection and privacy. This includes obtaining necessary consent and ensuring secure storage and processing of data.
Insurance: It may be wise for her to consider professional indemnity insurance, which can protect her in case of claims made against her services.
It’s advisable for her to consult with a legal or financial advisor who specializes in cross-border freelance work to ensure she fully understands her obligations and can navigate any complexities that may arise.