Opportunity in Germany

[drmouse]

Hi all,

I hope someone can help.

I've just been put forward for a potential contract in Berlin. It seems a good opportunity but, looking into it, I see the situation is not as simple as I may have thought.

From the agent's description, I would be required to work at the client's site for a short while (maybe a month or so), after which the majority of the work will be remote.

For UK contracts, I work through my own Ltd. It appears this may not be possible for this contract though. So, my questions to you all are:
- How would I be best dealing with this? I have seen posts indicating I would need to use an umbrella with a German license. Would I have to continue to do so when working remotely?
- What are the tax and other financial implications? I have never earned money outside the UK before, and have only a very small amount of knownledge of the German tax system.
- Do any of you have any personal experience of a similar contract?
- What is it like working in Germany? I have spent a lot of time on holiday there, but I know that work is a different story.

Thanks everyone in advance

[Louisa@AardvarkAccounting]

The Germans are draconian about their taxes!

They don't like contractors working in Germany or for German companies, without paying German taxes on all of your income as if you were an employee.

Therefore most of the time, you would need to be a direct employee or go through a German umbrella company.

I would definitely seek German tax advice to make sure you don't fall foul of any German rules.

[northernladuk]

Hey Louisa.....

[Louisa@AardvarkAccounting]

Hey Louisa.....

Why do I feel worried that I'm going to get a NLUK smack down...?

[NotAllThere]

I work remotely for a German company through my own company. There's a bit more paperwork involved - especially regards MWST (VAT), but otherwise no problems.

So start off your contract with a Regenschirm, then perhaps move to your ltd through a Personalagentur?

[Louisa@AardvarkAccounting]

That's good that you've managed to put it through your company. I'm just always so weary...

I've seen in the past, clients that have worked in Germany and then years later down the line they get a later in the post from them demanding taxes!

[northernladuk]

Why do I feel worried that I'm going to get a NLUK smack down...?

[m0n1k3r]

Hi all,

I hope someone can help.

I've just been put forward for a potential contract in Berlin. It seems a good opportunity but, looking into it, I see the situation is not as simple as I may have thought.

From the agent's description, I would be required to work at the client's site for a short while (maybe a month or so), after which the majority of the work will be remote.

For UK contracts, I work through my own Ltd. It appears this may not be possible for this contract though. So, my questions to you all are:
- How would I be best dealing with this? I have seen posts indicating I would need to use an umbrella with a German license. Would I have to continue to do so when working remotely?
- What are the tax and other financial implications? I have never earned money outside the UK before, and have only a very small amount of knownledge of the German tax system.
- Do any of you have any personal experience of a similar contract?
- What is it like working in Germany? I have spent a lot of time on holiday there, but I know that work is a different story.

Thanks everyone in advance

You need to register your company in the trade register before doing business on site in Germany. Or else perhaps just look into registering as a Freiberufler (Freelancer) for any work performed there. That's what all German contractor does. They don't run limited companies as the tax incentives of being a Freiberufler are too good.

[Louisa@AardvarkAccounting]

It's like when someone says your name and you immediately go sit on the naughty step!

[northernladuk]

It's like when someone says your name and you immediately go sit on the naughty step!

That's called a guilty conscience isn't it? Sit next to me and tell Dr NLUK all about it.