Contractors Brexit – How Will Brexit Affect Contractors in the UK

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How will Brexit Affect Contractors
How will Brexit Affect Contractors

Contractors Brexit

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So what would be a good contractors Brexit. How will Brexit affect contractors and freelancers? Brexit can affect contractors, depending on the type of Brexit, by limiting contractors ability to work in the European Community (EU) or to sell ones services to an EU country. The different types of Brexit that will affect freelancers are:-

  1. No Deal
  2. Patricia May’s deal
  3. Customs Union
  4. Single Market or Common Market 2.0
  5. Remain in the EU

It should be pointed out that this article is purely from a contractor’s point of view. Readers may have their own reasons for wanting a particular type of Brexit outside the contractor point of view.

No Deal Contractors Brexit

In a No Deal Brexit contractors would be outside both the Customs union and the Single Market. Being outside the Single Market would mean that contractors would no longer have the freedom to be able to sell their services into EU countries on the basis that they do now. They would also, potentially, face tariffs if they do manage to get a contract in an EU country.

Theresa May’s Brexit Deal

Theresa May’s Brexit Deal would be no better for contractors than a No Deal Brexit. In her Brexit there would be no Customs Union. However, her deal means that the UK would stick to the same rules as the EU has with the Customs Union. It means that the UK is not inside the Customs Union but will follow the rules of it in order to trade without tariffs.

However, the bad news for contractors is that Theresa May has negotiated that only for Good and not Services. Yet Services are 80% of the British economy. Of Course UK contractors are part of the Service Economy. So, they would get no benefit at all from Theresa May’s deal.

Customs Union Brexit Deal

This allows UK companies, including contractors, to sell their goods and services without tariff into the European Union. As long as parliament did make sure it would include Services, unlike Theresa May’s deal, this would allow freelancers to sell their services tariff free into the EU.

Single Market or Common Market 2.0

The Single Market allows the free movement of Goods, Services, People and Capital in the European Union. If Britain were to take up this option it would mean that freelancers could sell their services as before into the EU.

Remain in the European Union

To remain in the European Union is the status quo and so there would be no difference for contractors in trading with EU countries. This would most likely come about after a second Referendum.

What is a good contractors Brexit? That depends on the option that the Government and Parliament permit.

As I said above, this is only looking at a contractors Brexit from a contractor’s perspective. Our readers may have other considerations too.

If you know anyone else who would find this article useful, please share it with them using the social media buttons at the top and bottom of the page.

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