Uk Ltd Company - Working in Italy - Sicily
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    Default Uk Ltd Company - Working in Italy - Sicily

    I understand there are many posts similar to mine, where questions have been asked, though no-one ever actually comes back to say exactly what they did, presumably so they don't potentially open up a can of worms....

    Ok 1st question which I doubt anyone can help with - Can anyone recommend an accountant in Sicily?


    Having spoken to my accountant and I do realise I will need specialist help from an Italian accountant/lawer, below is my situation

    I am about to take a contract in Sicily which initially will only be 3 months but highly likely to be extended another 12. I will be taking
    my wife and children and putting them into a local Italian School. I understand that I will be classed as an Italian Resident, accept there
    is no option there, and rightly so.

    I will be invoicing a UK agency during the assignment. I plan to take my normal nominal salary plus dividends as normal, but understand that
    the total of those combined will be subject to local Italian tax as I will be a resident. For clarity, my wife takes a wage and we have a 50/50 share so will take dividends as well. My concern is whether I should be paying any sort of corp tax in Italy, my accountant says otherwise " It is only the personal tax that Italy will be interested in. The corporation tax will be taken care of in the UK corporation tax return as the company is a UK company" This post here says otherwise http://forums.contractoruk.com/accou...urning-uk.html


    As far as Italian social security as I will be paying my NI in the UK on my salary I and have been advised to obtain an A1 form, so therefore wont be paying any Italian social security on my world wide income. Anyone confirm if this is correct? From what I have read that PSC's cant obtain an A1 form - as per the same post above.

    Also has we will all be living together, im assuming I cannot claim any expenses whatsoever like rent etc or living costs? I will still be renting a place back in the UK if that makes a difference? Could I claim initial moving/travel expenses ?

    Anyone used an Italian Umbrella or simialar? Am i likely to be better off using one of these and being legal the whole time?

    I am obviously keen to avoid any kind of unexpected tax bill appearing on my doorstep.

    Are there any gotchas in the advise that I have been given already?

    Thanks in advance

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    Firstly, down load and read the dual tax treaty between the UK and Italy. Read it, understand it, then go from there.
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    An old article but it helped me decide not to be resident in Italy.
    I guess it's different if you have kids and must register for schools.
    However, if you don't own property in the UK when you're in Italy, then it might be simpler for you.

    http://www.telegraph.co.uk/finance/p...ing-rules.html
    Don't believe it, until you see it!

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    The accountants uk company advice is tosh. It is far from a given. Though your particular circumstances could make that advice the right outcome.

    As far as the authorities in italy are concerned they are very likely to consider your company to be italian resident due to you presence there. Whether or not they will find out is a different matter but they should be told.

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    Billing through a UK agency doesn't make it a UK contract. This would be the equivalent of setting up an offshore company in the UK and billing an offshore agency.

    I would see an Italian accountant and set yourself up in Italy, just bill the UK agency from there, otherwise you could end up in deep trouble with the Italian tax authorities.

    In principle you pay your taxes where you physically do the work. There are exceptions but this doesn't sound like one.

    There is no point in taking risks because you probably won't save much tax anyway, just potentially giving yourself a huge headache, as a target of the notorious Italian justice system.
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    Speak to Sue @ iPaye - from memory they have an Italian payroll.

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    Thank You for your replies.

    I wasn't convinced by my accountants advice hence the post.

    I will try and contact IPAYE again, I used their contact form but not had anything back as yet.

    Been reading so much of previous posts, double tax treaty, working abroad with UK company, residency and my brain can't cope with it! I realise I need specialist help in this matter but just wanted to get others thoughts and the hope I would get an Italian accountant recommended.

    When I get sorted I will post back what I did as this is what is missing from other posts.

    Thanks

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