I’m a freelance recruiter based in the UK, and my wife, who also works as a freelance recruiter here, has received an offer from a Belgian company to assist with their recruitment needs.
Are there any legal regulations, tax implications, or licenses she should be aware of in this situation?
Thank you!
RCadmin
It’s great that your wife has the opportunity to work with a Belgian-based company! Here are some key points she should consider regarding legal regulations, taxation, and licenses:
Tax Implications: Since she is a UK-based freelancer providing services to a company based in Belgium, she will need to consider the tax implications of her earnings. She should report her income on her UK tax return and may need to check if there are any tax treaties between the UK and Belgium to avoid double taxation.
VAT Considerations: Depending on the services provided and her turnover, she may need to register for VAT. If her services are considered exempt from VAT or if the company she is working for is VAT registered, she may not need to charge VAT for her services. It’s essential to clarify this with a tax advisor.
Legal Requirements: There are no specific licenses required to operate as a freelance recruiter in the UK, but it’s advisable for her to comply with relevant employment regulations, including data protection laws (GDPR), especially since she will be handling candidate information across borders.
Employment Law: While working with a Belgian company, she should also familiarize herself with Belgian employment law at least at a high level, especially regarding hiring practices and employee rights, to ensure compliance.
Contractual Agreements: It’s crucial that she has a clear contract with the Belgian company outlining the scope of work, payment terms, and any other essential details. This agreement should comply with both UK and Belgian laws.
Professional Indemnity Insurance: Although not mandatory, obtaining professional indemnity insurance can protect her against claims of negligence or breach of duty that may arise from her recruitment services.
Networking and Industry Practices: Finally, it may be beneficial for her to join relevant recruitment associations or networks, which can provide resources and support as she navigates international recruitment.
Given the complexities of working internationally, consulting with a tax advisor or legal professional with expertise in international freelance work is always a good idea. This ensures compliance with all regulations and maximizes the potential of the business relationship.