Contract Newcomer Umbrella Scenario

[Inq]

Hello, after some years of permanent role, this is the first time that I am changing my professional career to be a freelancer contractor.

I have a won my first contract (through an recruiting agency) to work on a European east country (member of EU).

The umbrella company says that I can make a higher retention if I declare a modest income on the east country, they write something like "monthly remittance of x euros" and live a modest life.

The net income will be higher and deposited on any account and could be paid as dividends.

I don't know if I have to open a new bank account in the east country to receive this "monthly remittance". The agency says that I can receive all in my existing account.

What are your thoughts about this? What is the meaning of remittance in this situation?
This is my first experience with this so I feel confused about it.

Many thanks.

[cojak]

Are you a resident of the UK or do you expect to move the the new country?

If you live in the UK you may be getting yourself into trouble with HMRC if you join this type of umbrella.

Read this - it explains what you may be getting into. http://www.contractoruk.com/umbrella...pany_safe.html

[Inq]

Hi, I am a resident outside of UK (latin country) preparing to move (relocate) to the new country.

[northernladuk]

Which umbrella? UK agent? Working and living where? You think it's confusing? We don't even have the basic details to try and help you.

[cojak]

Hi, I am a resident outside of UK (latin country) preparing to move (relocate) to the new country.

OK, then we are not the best people to ask about this, you will need to ask the tax authority of the country to which you are relocating.

[Inq]

The umbrella is operated by the GroupChesterfield.

[northernladuk]

Welcome to ContractorUK

[Inq]

Sorry for the confusion. I am resident in Portugal, the uk recruiting agency is the next ventures, the umbrella company is groupchesterfield. I will be relocating to Hungary.
Thanks.

[cojak]

Our advice still stands. You will need to ask the Hungarian tax authority.

[LisaContractorUmbrella]

Even though the company finding you the work is based in the UK, you have no obligation to the UK tax authorities as you are a Portuguese tax resident who will be working in Hungary. If you are permanently relocating to Hungary and not returning to Portugal then you will need to advise the Portuguese tax authorities and settle your tax affairs there. You will then need to notify the Hungarian tax authorities of your arrival and register to pay taxes in Hungary. I can see no reason why the umbrella company you mention should be involved in this scenario.; I think it would be better for you to speak to an accountant in Hungary