FAQ’s by UK based clients

1. Can I treat the consultant as an employee and ask that they consult for me only?

   The answer is NO - the consultant is self-employed which means they can have more than one client they work for. They should however meet their deadlines and complete tasks in a timely manner as set out in their contract.

2. What are the South African employment laws and how does it affect me?

   South African employment laws are very straight forward - if it walks like a duck and quacks like a duck - it probably is a duck. So if you treat your consultant like an employee, what they should wear, fill out timesheets, and have control over them like you would with an employee, then they would be considered to be an employee rather than a self-employed consultant.

   Because you are engaging an independent consultant (a "contract for services") rather than hiring an employee, South African labor laws like the BCEA (Basic Conditions of Employment Act) generally do not apply to your business. You aren't employing them in the traditional sense. You are hiring a professional service provider. Your relationship is governed by the professional agreement you put in place with the consultant, not by South African payroll or labor department rules.

3. What am I obligated to report to HMRC?

   Nothing! Because the consultant is based entirely in South Africa and is not a UK tax resident, they fall outside the scope of UK PAYE and IR35. You do not need to report them on your Full Payment Submission (FPS) or withhold any tax. You simply pay their professional invoice as a business expense, just like you would for a software subscription or a UK-based marketing agency. The consultant will be liable to declare and pay their own taxes, insurance, etc in South Africa.

4. Do I pay the consultant annual leave or sick pay?

   No, you pay them for their availability and results. not an employee contract. Consultants handle their own time off. If they take time off, they will be paid pro-rata for the days worked only and not the time they were away.

5. How is the consultant paid?

   The consultant will send you an invoice once a month. That invoice will then be paid via international transfer directly to their account.

6. If things does not work out between me and the consultant, what is the procedure to dismiss?

   Since this is not an employment relationship, there is no need for HR procedures. If the fit isn’t right, the procedure is governed by the notice period in your agreement. You can just notify the consultant in writing and give them notice according to what was stated in the contract.

7. If the consultant stays and consults for a long period of time, will there be any legal pitfalls, or trigger deemed-employment?

   These rules do not apply for the consultant working 100% remotely from South Africa. As long as the consultant doesn't have the authority to sign legal contracts on your behalf in South Africa (creating what's called a Permanent Establishment), you can work together for many years without any extra tax or legal liability in the UK.

8. If things don’t work out between me and the consultant and I contact you to source a new one for me, do I have to pay the one-off fee again?

   We give a grace period of 30 days. Should things not work out between you and the consultant during that time, you can notify us within the 30 day period and we will give you one additional sourcing for free to replace them. The grace period only applies once. Should things not work out with the second consultant, you will have to pay the one-off fee again. Rest assured, we strive to get you the perfect fit the first time around.