Hard Brexit for Freelancers as Contractors Excluded from EU Deal

Hard Brexit for Freelancers
Hard Brexit for Freelancers

Hard Brexit for Freelancers

It looks like a hard Brexit for Freelancers and Contractors as Theresa May excludes Services completely from her proposed Brexit deal with the EU.

She is only interested in getting a soft Brexit for goods and has left Services out completely.

In among those services are IT services, both in terms of permanent employees and IT Contractors.

However, it will affect all other freelancers too.

Freedom of Movement in EU

The EU has four basic pillars. Freedom of Movement of:-

  1. Goods
  2. Services
  3. Capital
  4. People (labour)

When the EU accuse the UK of trying to cherry pick what they want, this is basically what they mean.

The UK doesn’t want freedom of movement of people.

However, they do want freedom of movement of, goods, services and capital.

No Freedom of Movement for Services

It looks like Theresa May and her cabinet decided not to ask for any freedom of movement for services.

All they want is freedom of movement for Goods.

It’s not clear what they want as regards freedom of movement of capital – which is very important to the City of London.

Freedom of Movement for Goods

It’s crucial for the multi-national companies that operate in the UK that they get freedom of movement of goods.

Many of them are only here because the UK is in the EU.

For instance the big multi-national car makers from the likes of Japan, make cars in the UK to sell to the EU without tariffs.

If there were tariffs then they would pick another EU company to make their cars for export to the EU. Ireland would be a major possibility for them.

UK Freelancers Working in Europe

Traditionally far more UK IT Contractors work in the EU in countries like Germany, France, Holland and Belgium than EU contractors working in Britain.

Rates tend to be higher there.

After Brexit EU countries will have to choose their freelancers from EU countries before non-EU countries like the UK.

There will no longer be freedom of movement for UK contractors and freelancers.

That will be a big blow to IT Contractors and other freelancers.

It looks like a hard Brexit for freelancers.

There could potentially be tariffs on those freelancers working in the EU via their UK limited companies.

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