Contracting opportunity in Norway. Please help...

[Dunc1n]

Hi guys,

I have recently been offered a contracting opportunity in Norway. I would like to take it, but I just don't know if it will be financially suitable for me, as I've heard, and read mixed reports.

It is only a 6 months contract (max), and the wage is 40GBP per hour. I would be working there via my own ltd company.

Can anyone let me know what percentage of my wage would I be taking home? I've heard mixed reports from 55% to 75%, but I really need to know for sure.

Also, can someone tell me the average monthly living costs for staying in Stavanger. Again, I've heard mixed reports on this. I've heard that the minimum rent would be 800GBP, and another 800 on top for living costs. Can anyone back this up?

I just need to know all these details to decide if it's worth going over, or if I am going to be worse off financially, as I still have bills to pay back home (1100GBP per month for rent, plus living expenses for my family).
My first thoughts were to go over there and get my head down, work hard, and live on a shoestring for 6 months to save up a bunch of money and get myself out of this hole of debt that I've gotten myself into. However, I'm hearing horror stories regarding tax and living costs, and that I will be saving nothing at all, and if that's the case, then I don't think it's worth leaving here and not seeing my kids for 6 months.

Any help/advice from you guys would be greatly appreciated.

Thanks,
Dunc1n

[cojak]

Sorry, but I'm not sure that taking a contract in Norway is going to dig you out of debt in the UK - it could actually make things worse.

I would only advise experienced contractors to work in Norway, in fact that experienced that they wouldn't need our advice in the first place.

[wattaj]

...the wage is 40GBP per hour...

You'll need a part-time job if you'd like to eat whilst there.
HTH.

[northernladuk]

Can anyone let me know what percentage of my wage would I be taking home? I've heard mixed reports from 55% to 75%, but I really need to know for sure.

You'll be taking all your wage home, but that's only about 11k. Your company income is a different matter. But before anyone says, that's not really true because he can't use his LTD in Norway.

£320 a day? Norway? I don't think so but 20 seconds on google found this..

Cost of Living in Stavanger. Jun 2019. Prices in Stavanger

Its in Kr so time to do a bit of your own research now.

But really.. this is your answer.

I would only advise experienced contractors to work in Norway, in fact that experienced that they wouldn't need our advice in the first place.

[Sue B]

Hi Dunc1n,

Firstly, if you are going to use your own Ltd in Norway you will have to register it there, and deal with Norwegian reporting for CT, IT, NIC and dividends etc. Failure to do this will just result in a huge tax bill, fines and penalties. Run correctly, a Norwegian branch of a UK Ltd co should be around 55-60% maximum net.

For the sake of 6 months work this would seem to be a bit more hassle that you want, so you are probably best off using an international umbrella (yes like ours), the rate of return is not much higher but can be in the region of 60-65% net for a standard contract, and your liabilities are dealt with via PAYE.

There is a new regime in 2019 in Norway for some employees and those meeting the criteria can apply for a 25% tax tax. The main criteria is a short term contract, so 6 months or less but there are other qualifiers. This 25% is reduced again if you UK based employer obtains an A1 Certificate, as the 25% includes employee NI.

This is not a tax regime anyone can automatically put you on. you must apply yourself. We have to run with the tax codes we are given when we register our workers, but if applications are successful we would be sent new tax coding notices.

Expenses in Norway are restricted to around 16% of gross pay (your Ltd Rate), to go against your expenses as a tax deduction but these must be evidenced (receipts etc) and you must be classed as a commuter (i.e. returning home at least 3 times per year of married / dependants or every 3 weeks in single / no dependants.

Quick example PAYE calculation based on 160 hours per month, standard payroll (i.e. not the 25% as that is best case scenario) top line £6400, expenses of just over £1050.00, net income £4146.80 / £25.92 per hour, which is 65%.

But then you would still then have to find the money for next months travel and accommodation, so if we deduct those too, then the true net, after paying out everything you need to earn it, tax, NI, Expenses etc, £3096.80 / 160 hours = £19.35 per hour. (And that doesn't include buying food)

HTH

[itsjustme]

Hi All,

Appreciate some time has passed on this one, I have a query which is related but potentially slightly different to the situation listed above and others I have seen on this forum.

I have a potential opportunity in the works which would see my time split between the UK and Oslo, initially 5days/week on site for an interim period, followed by 2 days on site, 3 days remote from the UK for 6-9 months thereafter. Rate is of course hourly all inclusive.

Does anyone have any experience or advice on how this might be captured under NOR tax, whether I could run this through my UK ltd? I've read a range of conflicting forum posts and so-called official guidance (gov.uk etc) but none seem to cater for this specific situation. In the official guidance there is reference to [x-number] of days spent working/living in NOR but in my case I would be well under the threshold.

Thanks,

[m0n1k3r]

Hi guys,

I have recently been offered a contracting opportunity in Norway. I would like to take it, but I just don't know if it will be financially suitable for me, as I've heard, and read mixed reports.

It is only a 6 months contract (max), and the wage is 40GBP per hour. I would be working there via my own ltd company.

Assuming you work in IT, £40 (NOK 480) is far below Norwegian market rates but quite typical of UK-based agencies trying to price themselves in to the Scandinavian markets. That is about what a perm software developer costs a Norwegian employer per hour.