• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.

Contracting in Denmark

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    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; 21 November 2014, 19:56.

    #2
    To clarify the retention I was quoted should be 62% unfortunately not 80%.

    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.

    Comment


      #3
      Considering Scandinavian tax rates in general even netting 62% is really good.

      Comment


        #4
        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

        Comment


          #5
          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

          Comment


            #6
            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.....

            Comment


              #7
              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.

              Comment


                #8
                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....

                Comment


                  #9
                  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.

                  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....

                  Comment


                    #10
                    Contracting in Denmark

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

                    Comment

                    Working...
                    X