Contracting to UK company from EU based co

[MEMEME69]

Hi,

Wanted to ask about providing contracting services to a UK registered company from a private company (equivalent to a UK Ltd) based in another EU country.
Private company would be registered/based in the EU with its business account in the same country.
UK company would be invoiced in GBP/EUR (whichever it prefers).
Services would be provided in company's London & regional offices around the EU as required.

Anyone here done/doing it?

Would it be subject to any UK rules & regulations?


Thanks.

[northernladuk]

Do you have an offer or are you thinking of doing it? Very few, if any, agents will deal with a non UK company so that's a large majority of the market gone.

[MEMEME69]

Do you have an offer or are you thinking of doing it? Very few, if any, agents will deal with a non UK company so that's a large majority of the market gone.

Got an offer from a previous client.

[BlasterBates]

Basically you pay tax where you do the work. If you're working for a client in one country which is doing projects in other countries and you are resident there then you can probably tax it all there. It doesn't unfortunately look like this is the case and you are probably going to have a tax liability in the UK at the very least.

This is complicated.

[MEMEME69]

Basically you pay tax where you do the work.

Instead of where the company is registered, invoicing from and receiving the payment to?

Basically you pay tax where you do the work. If you're working for a client in one country which is doing projects in other countries and you are resident there then you can probably tax it all there.

The client is a UK company.
It has subsidiaries in several EU countries which are due a system consolidation project.
The work will require travel/accommodation/subsistence to and working in France/Germany/Spain.

My company would be registered in a different EU country where the client doesn't have any subsidiaries or offices and no work on the project is planned/done there.
I also have citizenship of the country where the company would be setup/based.

The client has other UK based contractors who have worked across all the subsidiary offices/countries and all invoicing/payments go through their UK Limited companies.

Are you saying if a contractor (UK or EU) works 5 days in 4 different countries in a month and invoices the client a total of 20 days work they then have 4 tax liabilities in different countries.
Now that is complicated

[BlasterBates]

Instead of where the company is registered, invoicing from and receiving the payment to?


The client is a UK company.
It has subsidiaries in several EU countries which are due a system consolidation project.
The work will require travel/accommodation/subsistence to and working in France/Germany/Spain.

My company would be registered in a different EU country where the client doesn't have any subsidiaries or offices and no work on the project is planned/done there.
I also have citizenship of the country where the company would be setup/based.

The client has other UK based contractors who have worked across all the subsidiary offices/countries and all invoicing/payments go through their UK Limited companies.

Are you saying if a contractor (UK or EU) works 5 days in 4 different countries in a month and invoices the client a total of 20 days work they then have 4 tax liabilities in different countries.
Now that is complicated

If you are invoicing the UK subsidiary then this looks like it may well just be a UK tax liability. It depends on how much time you spend in the UK. Basically it is possible to avoid tax liability in a certain country if you are subcontracted to a company resident in another country.

If the UK company is audited and then they check your invoices they will expect you to be paying UK tax. If you were not they would want proof of where you were and tax returns of where you paid tax. If you were to work in France and have proof of that but tax yourself in your home country this wouldn't add up, as it wouldn't be legal and they may simply demand UK tax on top.

Probably the legal way to do this is through a UK Ltd company and all taxed in the UK. If the company charges you out to their subsidiaries acting in a similar way to an agency or consultancy, then a specific contract will exist for that work and should be taxed in the country where the work is carried out.

Just to give an example as to when a tax liability does not occur. You are an Electrician working for a construction company in the UK, they send you out to a customer to do some cabling in another country on the project charged to their account in the UK. Then you have no tax liability there.

An example where a tax liability does occur. A foreign company asks for your services as an Electrician for a short period but the UK client company is not carrying out any project, they simply charge an hourly rate to the foreign company. Then you are liable for tax.

The rule is to simplify companies performing installations when completing project to enable them to send employees and sub-contractors without them having to register locally; this rule doesn't apply to agencies or companies acting as an agency for personal services.

Yes it is complicated but probably in your case taxing yourself in the UK is probably the simplest legal way.

There is a member here who specialises in this. I would contact her.

https://www.contractoruk.com/forums/...-at-ipaye.html