I am struggling to find information on how tax is handled when contracting in the UK using an overseas company (EU) but where I, as the contractor, am actually resident in that country and don't plan on "moving" to the UK.
Let me explain my situation a little more - I am living in Spain and have been for 4 years, where I am tax resident and have a spanish limited company with an EU VAT number that provides IT consultancy services. I am interested in taking on a contract for a UK company, for simplicity I would like to run this via my already established Spanish company. If I contract for a UK company I will still be resident in Spain, I will be providing some work onsite in the UK (where I will not have a permanent base and will most likely stay in hotels) and the rest of the work remotely from Spain. I don't know the exact split of offsite/onsite, but for arguments sake, let's say 50/50 working hours.
I thought this would be a fairly simple matter of signing the contract and invoicing from my Spanish Ltd co since I will continue to be resident in Spain even though part of the work will be provided onsite in the UK - but the agency I am dealing with is insisting on me going through a UK umbrella company. I do not want to end up having to pay income tax in the UK and then offsetting it under the double taxation treaty with my spanish income tax since it's more tax efficient, and way less complicated, for me to invoice from my Ltd company in line with other income streams I have. And how would that even work when only half of the services (estimated) would be provided in the UK?
Im feeling like I'm opening pandoras box searching around for answers on this so I'm hoping someone more clued up here can give me some advice.
Thanks
Let me explain my situation a little more - I am living in Spain and have been for 4 years, where I am tax resident and have a spanish limited company with an EU VAT number that provides IT consultancy services. I am interested in taking on a contract for a UK company, for simplicity I would like to run this via my already established Spanish company. If I contract for a UK company I will still be resident in Spain, I will be providing some work onsite in the UK (where I will not have a permanent base and will most likely stay in hotels) and the rest of the work remotely from Spain. I don't know the exact split of offsite/onsite, but for arguments sake, let's say 50/50 working hours.
I thought this would be a fairly simple matter of signing the contract and invoicing from my Spanish Ltd co since I will continue to be resident in Spain even though part of the work will be provided onsite in the UK - but the agency I am dealing with is insisting on me going through a UK umbrella company. I do not want to end up having to pay income tax in the UK and then offsetting it under the double taxation treaty with my spanish income tax since it's more tax efficient, and way less complicated, for me to invoice from my Ltd company in line with other income streams I have. And how would that even work when only half of the services (estimated) would be provided in the UK?
Im feeling like I'm opening pandoras box searching around for answers on this so I'm hoping someone more clued up here can give me some advice.
Thanks
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