HiringaFreelanceDeveloperThroughaUKLimitedCompany:WhattoExpect
Hiring a freelance developer as a UK limited company is a routine commercial arrangement — invoicing and contracting with a freelancer isn't meaningfully different from contracting with any other supplier, once you know what to expect.
How the Commercial Relationship Works
You'll receive invoices from the freelancer against an agreed scope of work — at milestones for fixed-price engagements, or on a regular billing cycle for hourly work. These are treated as a normal business expense, the same as any other supplier invoice, and should be kept for your company's own records.
This is general information, not tax advice — your accountant can confirm any VAT treatment relevant to your specific arrangement, particularly if the freelancer is based outside the UK.
What Should Be in the Contract
A proper agreement should cover scope of work, payment terms and currency, IP assignment (work product transferring to your company), and confidentiality. This is standard for any freelance engagement and should be agreed before substantive project discussion begins.
If IR35 is a relevant consideration for your engagement structure, that's worth discussing with your accountant early — though for a fully overseas contractor invoicing directly rather than operating through a UK limited company, it typically sits outside the specific mechanics IR35 addresses. This is general information, not legal advice.
Practical Terms to Expect
Fixed-price engagements commonly start from USD 500, milestone-based. Hourly engagements run USD 25–45/hr with a 10-hour minimum. A written quote is typically available within 48 hours of a scoping call, and an NDA is standard practice before detailed project discussion.
Key Takeaways
- →Freelancer invoices are treated as a normal business expense for a UK limited company.
- →Keep invoices and contracts on file for your company's own records and potential VAT considerations.
- →The contract should cover scope, payment, IP assignment, and confidentiality before substantive work starts.
- →For a fully overseas contractor invoicing directly, IR35's specific mechanics typically don't apply the same way.
- →This is general guidance, not tax or legal advice — confirm specifics with your accountant.
Related Guides
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