Contracting in Belgium for 1 year

[cojak]

Linky ?

Thanks,

Boo

Google ‘taxfoundation.org’ with the title of the chart.

If I can find it you can too.

[m0n1k3r]

This is my first contracting gig. I have been offered a contract to Brussels for 1 year. I have registered an Ltd last summer so that is in place. The income will be past the VAT threshold.
I called an accountant and he said that he will need about 10-15 hours on 275 per hour to look into structuring the most tax efficient way to do this, as taxation in Belgium can reach 50% (and I don't want that). Then again, I live with my spouse in London and don't know if it's really worth it going to Brussels, if I'm going to be paying, say 45% at the end, plus pay some 3k or more to an accountant to structure only my company, and then pay an accountant for book keeping and the rest. The accountant said that the structure will have to be in place before I start (which may have sounded a but pushy).
I have tried to shop around but no one is really confident on how to do this best, and this guy who has good reviews and was suggested, said he has done it before for his clients, and knows how it can be done.

Thoughts on this? Is the accountant charging a bit too much? Or is this standard practice?

Forget about using your UK company, unless you can show that you cannot manage or make decisions for it yourself. Contractors in other EU countries, except for the UK, are usually self-employed, not limited company owners. Tax laws and regulations about "permanent establishment", employment laws, social security etc are based on that assumption. As self-employed you can just send yourself to work in another country for up to six months (usually, except for in the UK and Ireland) without paying any taxes there, as long as you commute home regularly.

As you will spend more time there than six months in a 12 month period (not tax year), you would have to operate Belgian accounting and taxes for the self-employed so you might consider working through a payroll bureau (e.g. "umbrella") just to keep things simple, but you should probably discuss the options with an accountant or payroll bureau there. It is likely that the payroll bureau could still take care of administration for you even as self-employed.

Obviously, your self-employed status is quite useless in the UK as it stands (if you're working through agencies), but outside of the UK it works wonders, where companies are for people wanting to grow their business and hire employees to do (most of) the work.

[cojak]

Thanks Eek.

I would be happy to put together an FAQ, it doesn't have to be country specific as all EU countries are the same from a tax law point of view. Would the Mods be ok with this?

Yes we would Sue.

[Sue B]

Yes we would Sue.

Thanks, will put something together as I have time, and send it to you.

[Skag]

Forget about using your UK company, unless you can show that you cannot manage or make decisions for it yourself. Contractors in other EU countries, except for the UK, are usually self-employed, not limited company owners. Tax laws and regulations about "permanent establishment", employment laws, social security etc are based on that assumption. As self-employed you can just send yourself to work in another country for up to six months (usually, except for in the UK and Ireland) without paying any taxes there, as long as you commute home regularly.

As you will spend more time there than six months in a 12 month period (not tax year), you would have to operate Belgian accounting and taxes for the self-employed so you might consider working through a payroll bureau (e.g. "umbrella") just to keep things simple, but you should probably discuss the options with an accountant or payroll bureau there. It is likely that the payroll bureau could still take care of administration for you even as self-employed.

Obviously, your self-employed status is quite useless in the UK as it stands (if you're working through agencies), but outside of the UK it works wonders, where companies are for people wanting to grow their business and hire employees to do (most of) the work.

This complicates matters even more. If I'm self employed in Belgium, I will have to pay taxes and SS in Belgium. Unless you can find somewhere on the web that states the opposite? (Or a source).

Interestingly, I have been told by the hiring company, that most of the contractors are going to use their UK Ltd for 6 months, and then sign up for an umbrella company, and thus staying effectively "invisible" as far as Belgian citizenship is concerned. This sounds ideal, especially as I'm dipping my toe in the water for the first month or two.

[SueEllen]

This complicates matters even more. If I'm self employed in Belgium, I will have to pay taxes and SS in Belgium. Unless you can find somewhere on the web that states the opposite? (Or a source).

Interestingly, I have been told by the hiring company, that most of the contractors are going to use their UK Ltd for 6 months, and then sign up for an umbrella company, and thus staying effectively "invisible" as far as Belgian citizenship is concerned. This sounds ideal, especially as I'm dipping my toe in the water for the first month or two.

The Belgian taxman sounds more efficient than the UK one....

[Skag]

The Belgian taxman sounds more efficient than the UK one....

Based on experience?