I am an independent IT consultant permanently based in Spain, but I don't hold EU citizenship and have no legal or economic connections to the UK. I'm struggling to secure contract work with UK-based companies, even for roles that are Outside IR35. I've found that many UK employers are reluctant to hire non-UK residents for full-time remote contract opportunities due to concerns about tax obligations, compliance risks, and potential legal issues.
What We Can Choose From:
Personal Service Company (PSC): I'm open to incorporating a UK Ltd company, which is a common structure for UK contractors and is fully compliant for contracting outside IR35.
Umbrella Companies or EOR Solutions: These seem like good options where an umbrella company invoices the client on my behalf and pays me, either under PAYE or through a B2B arrangement. However, this doesn't work for me because I can't be hired in my country of residency (Spain) due to residency restrictions as a digital nomad. I can only work for remote companies within the EU region as an employee and I can provide my services to any non-EU companies via a B2B arrangement.
Global Payroll Solutions: I haven't explored this option extensively, but I understand that convincing employers to adjust their payroll systems (e.g., using Deel, Moorepay, Cintra) specifically for me isn't realistic.
Despite demonstrating that the nature of the contract would be purely B2B with no permanent employment considered, I continue to face resistance from UK employers, who seem to prefer hiring locally.
What I've tried so far
- Change the location on Linkedin from Spain to the UK to be able to apply for UK jobs
- Applied for about 100 different job openings ( on Linkedin, Indeed, Reed, Glassdoor, etc) - mostly Outside IR35 but both remote/hybrid roles.
- Talked to one of the reputable and well-known Umbrella companies, they have branches in Spain, the UK, and other countries.
The options Umbrella company provides to me are the following:
- They can hire me as an employee in Spain but I need to change my visa regime from a digital nomad to a skilled worker visa. The process of modification might take a few months and I haven't considered this option so far as a priority.
- They can make a contract B2B with my personal services company but only under the Outside IR35 contract regime.
PROS of Umbrella companies You automatically eliminate all legal and compliance headaches and your client is happy
CONS of Umbrella companies They don't help you find a client and negotiate all the conditions with him. However, they may help explain to him all the necessary aspects of a potential contract relationship.
I haven't conducted a single job interview so far with UK clients. All recruiters act as firewalls and stop immediately the conversation after hearing about any complications and potential visa sponsorship requirements since they have an explicit request from the clients to search the candidates within the UK only.
The typical reply from the company is: Thank you for your interest in the 123 position at XYZ in the London Area, United Kingdom. Unfortunately, we will not be moving forward with your application, but we appreciate your time and interest in XYZ
Question:
What are some practical workarounds or strategies I can use to persuade UK-based companies to consider me for remote contract roles, without compromising their compliance or legal frameworks? I’m fully open to travel occasionally to the UK for hybrid work arrangements as well.
I appreciate any advice or insights from others who have navigated similar challenges!