Posted worker clarity

[Sue B]

Hi Grabri,

In all cases please note that the reality of what happens is important, not the contract. As I do not know all of your circumstances then I cannot advise you.

However, generally speaking, taking the circumstances you are describing here as an example, you are not contracted to deliver your services in Denmark, but rather to deliver them from the UK to a Danish client.

If this is the case, and if you visited your client on an ad hoc basis then it probably would be a business trip, as it is ancillary to the contract. This would be taxable only in the UK through your UK Ltd Co.

Even non contractual, ad hoc trips can add up to be an assignment so be careful. If you visit your client every month for a few days this could be considered to be a contractual requirement. Contractual visits are not business trips they are assignments. Assignments are normally taxable in country.

Please note that although the definition of business trip is rather woolly in most countries, it is normally acceptable for this to be a maximum of 30 days. Anything longer would be considered an assignment.

HTH

[cwah]

EU Freedom of Movement is a wonderful thing, but a few things to remember;

1. It doesn't extend to companies etc.

2. Tax is due where the work is done.

3. There is no tax harmonisation in the EU.

WRT to working out costs you do what I've done and others do, price up flights, accommodation, general costs to eat etc, check for local tax incentives (30% rule in DK for example). You can either do this yourself or pay someone, or tell us which EU state and one of us might have some insight. Every EU state is different.

Subject to the above, the safest and easiest route is to go local payroll, mostly you have to, you can use your limited if you insist but that's a huge can of worms as others have alluded to. Doable, but not worth the effort.

Expect to pay around 500 Euro a month for the payroll (they will sort your tax too).

Another think to consider is in most EU states (well, all except UK and IRL) there is a legal requirement to register your presence locally, EU law says within three months (when you cease to be a visitor) but best to do it ASAP within 30 days so your local tax and entitlements align etc.

Factor in another £150 a day on the rate to pay for all this.

That's a lot tax to pay for a contract abroad. I'd like to work a bit more abroad and I'm competing against local, and rate are usually quite low.

If I pay half of my day rate into tax, and I have to cover accommodation and transport, it just blow all the value to contract abroad.

Is there anything I can do about that? Or is contracting abroad out of reach for people on low day rate?

[SueEllen]

That's a lot tax to pay for a contract abroad. I'd like to work a bit more abroad and I'm competing against local, and rate are usually quite low.

If I pay half of my day rate into tax, and I have to cover accommodation and transport, it just blow all the value to contract abroad.

Is there anything I can do about that? Or is contracting abroad out of reach for people on low day rate?

It's out of reach.

You need to find a permie job where some of your extra costs are covered.

[cwah]

Thanks for your answer... it looks like doing remote contract is only worth it if you get big pay check

[stek]

Thanks for your answer... it looks like doing remote contract is only worth it if you get big pay check

Well not really, tax is pretty much the same with some exceptions. The biggest additional expense is travel and accommodation, the cost of two homes and getting there.

If you live at home it's no problem, or if you relocate full time, just need to stay out of UK and not be tax resident in UK. Then you are just a local.

Trouble is it's a bit of a minefield being non-tax resident, and staying/working 24/7 for an extended period in a foreign country might sound like fun but believe me it can get to you. Language, culture and bureaucratic differences can get on your tits after a while.