Incorporation advice - Contract with a German company from the UK

Question

I have been hired by a German recruiting company to work with a German company and I am based in the UK. The contract will be outside IR35 and I will be paid by the recruiting company.

I do not intend to do freelancing long term it is just to fill the gap until my next full-time position. The contract has a duration of 5 months.

I don't think it is worth setting up an ltd company for a one-shot despite the payment being >£60k. In the past, I used Giant umbrella but they told me they are not processing Euro payment.

• I guess in my position umbrella is the best option for this contract, do you agree?
  • If so can you recommend one that accepts payment in Euro?
• For those who have done that via umbrella, how was the currency exchange?
  • I am worried that the exchange rate will be awful with this option
• Is there any solution you could recommend I haven't mentioned?

Thank you

Answer 1

For those interested, I figured out a solution by using an international umbrella company, which allows them to receive the funds in euro and to pay me in pounds.

The icing on the cake is they offer 2 solutions of payment, the traditional PAYE and the second one is a reduced PAYE salary paired with an option grant payment and this is really good, with the first option you pay something like 45% tax and the second option you pay only 23%.

I haven't explored the pros and cons for each, apparently, the first one is better if you want to do a mortgage. Lastly, if you have an LTD, and don't do regular international contracts, this could be a better option for you as you won't have to deal with the hassle of conversion currency and extreme fee exchange from the bank. In my case, the conversion fees are 0.3% vs 2.5% usually.