+ Reply to Thread
Posts 1 to 10 of 10
  1. #1

    Nervous Newbie


    Join Date
    Nov 2014
    Posts
    6
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default Contracting in Denmark

    I'm in the process of applying for a contract in Denmark. I will be in Denmark around 80% of my time so am aware I can't use my UK limited. The agency has told me that I must use a payroll company from their approved approved list of supppliers. I've spoken to a couple of these companies one of which told me that the only compliant way is for me to go through a payroll company, but that I should be eligible for the Danish highly skilled expat flat tax scheme. The other told me that the best way to do it is to work as a freelancer via them, although what they seem to do is set you up with a Danish accountant. Both are quoting me similar figures of around 400 Euros per month which seems expensive to someone who is used to UK accountancy fees, but perhaps it's the norm out there, and both (surprisingly) are quoting me almost identical retention figures of around 80%. I've had a very bad experience with a payroll company going bankrupt on me before, so I'm a bit worried about using one again, but equally I don't know how compliant this freelancing model is in Denmark.

    I have a few questions, any help or advice greatly appreciated.
    My questions are:
    1) has anyone contractred in Denmark, if so which model did they use and what was the retention.
    2) are the fees I've been quoted normal?
    3) Are you able to recommend any payroll companies/Danish accountants, I'm wondering whether I might be better off just going direct to a Danish accountant myself.
    Last edited by sumes; 21st November 2014 at 18:56.

  2. #2

    Nervous Newbie


    Join Date
    Nov 2014
    Posts
    6
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    To clarify the retention I was quoted should be 62% unfortunately not 80%.

    Quote Originally Posted by sumes View Post
    I'm in the process of applying for a contract in Denmark. I will be in Denmark around 80% of my time so am aware I can't use my UK limited. The agency has told me that I must use a payroll company from their approved approved list of supppliers. I've spoken to a couple of these companies one of which told me that the only compliant way is for me to go through a payroll company, but that I should be eligible for the Danish highly skilled expat flat tax scheme. The other told me that the best way to do it is to work as a freelancer via them, although what they seem to do is set you up with a Danish accountant. Both are quoting me similar figures of around 400 Euros per month which seems expensive to someone who is used to UK accountancy fees, but perhaps it's the norm out there, and both (surprisingly) are quoting me almost identical retention figures of around 80%. I've had a very bas experience with a payroll company going bankrupt on me before, so I'm a bit worried about using one again, but equally I don't know how compliant this freelancing model is in Denmark.

    I have a few questions, any help or experience greatly appreciated.
    My questions are:
    1) has anyone contractred in Denmark, if so which model did they use and what was the retention.
    2) are the fees I've been quoted normal?
    3) Are you able to recommend any payroll companies/Danish accountants, I'm wondering whether I might be better off just going direct to a Danish accountant myself.

  3. #3

    Still gathering requirements...


    Join Date
    Sep 2014
    Posts
    97
    Thanks (Given)
    0
    Thanks (Received)
    1
    Likes (Given)
    1
    Likes (Received)
    18

    Default

    Considering Scandinavian tax rates in general even netting 62% is really good.

  4. #4

    Should post faster


    Join Date
    Jul 2011
    Location
    Erpa
    Posts
    172
    Thanks (Given)
    8
    Thanks (Received)
    6
    Likes (Given)
    46
    Likes (Received)
    26

    Default

    Pretty sure there are threads on this site about this. IIRC, you can use your UK Ltd. You just need to register it with the Danish authorities. Would probably be easier/safer than using a Danish umbrella but you'll have to look at the figures yourself.

    This seems to be the place to start looking: SKAT: Selvbetjening og information til borgere

  5. #5

    Nervous Newbie


    Join Date
    Nov 2014
    Posts
    6
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    Thanks for the replies. I'm beginning to wonder whether all these tax issues make the contract viable. I just spoke to my accountant who advised me that I would potentially be liable for UK income tax on the difference between any Danish tax and UK tax rate.

    I was expecting to qualify for the Danish Expat tax rate of 25%, Tax in Denmark - Taxation in Denmark: Expats - 25% tax scheme if i then have to pay of the saving that gives me in uk tax, then I wonder what the point of having that discount is in the first place?

    Thanks

  6. #6

    Double Godlike!

    stek's Avatar
    Join Date
    Oct 2009
    Location
    East of Eden
    Posts
    10,865
    Thanks (Given)
    3
    Thanks (Received)
    243
    Likes (Given)
    11
    Likes (Received)
    1420

    Default

    Quote Originally Posted by sumes View Post
    Thanks for the replies. I'm beginning to wonder whether all these tax issues make the contract viable. I just spoke to my accountant who advised me that I would potentially be liable for UK income tax on the difference between any Danish tax and UK tax rate.

    I was expecting to qualify for the Danish Expat tax rate of 25%, Tax in Denmark - Taxation in Denmark: Expats - 25% tax scheme if i then have to pay of the saving that gives me in uk tax, then I wonder what the point of having that discount is in the first place?

    Thanks
    Unless it's in the 650/day plus range bin it.....

  7. #7

    Nervous Newbie


    Join Date
    Nov 2014
    Posts
    6
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    Quote Originally Posted by stek View Post
    Unless it's in the 650/day plus range bin it.....

    Thanks for advice, are you familiar with the Danish market, any idea how rates tend to compare with the UK? What I'm being offered is around 15% better than a similar UK job I suppose.

  8. #8

    Double Godlike!

    stek's Avatar
    Join Date
    Oct 2009
    Location
    East of Eden
    Posts
    10,865
    Thanks (Given)
    3
    Thanks (Received)
    243
    Likes (Given)
    11
    Likes (Received)
    1420

    Default

    Quote Originally Posted by sumes View Post
    Thanks for advice, are you familiar with the Danish market, any idea how rates tend to compare with the UK? What I'm being offered is around 15% better than a similar UK job I suppose.
    Yeah recently went for a Linux role with a bank, not a fan of Linux I'm a traditional Unix man, rate offered was 650 - normally for just Linux I'd say it was a 400/day role here.

    I doubt a 15% uplift will pay your bar bill let alone flights/accom....

  9. #9

    Nervous Newbie


    Join Date
    Nov 2014
    Posts
    6
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    Ok thanks. I guess I won't make any more money, but maybe it will be a good experience, albeit a ccold one, did you use an umbrella out there. My agency is telling me this is the ony way i ccan be setup.

    Quote Originally Posted by stek View Post
    Yeah recently went for a Linux role with a bank, not a fan of Linux I'm a traditional Unix man, rate offered was 650 - normally for just Linux I'd say it was a 400/day role here.

    I doubt a 15% uplift will pay your bar bill let alone flights/accom....

  10. #10

    Nervous Newbie


    Join Date
    Mar 2015
    Posts
    1
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default Contracting in Denmark

    Sumes,
    Did you take the contract?
    I am in a similar position myself and seeking similar answers.
    What did you do?

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.