Working in Belgium - LIMOSA help

[psshutdown]

Hi,

I'm a UK resident with a UK Ltd company and about to start a 6 months contract with a Belgium registered company, the role is 90% remote and will not exceed 183 days working in Belgium.

I'm in the process of completing the LIMOSA declaration but have few questions:

There are number declaration options:

1. Employee
OR
2. Self-Employed person without 'Employees'

Which is the correct option?

Thanks

[BlasterBates]

Hi,

I'm a UK resident with a UK Ltd company and about to start a 6 months contract with a Belgium registered company, the role is 90% remote and will not exceed 183 days working in Belgium.

I'm in the process of completing the LIMOSA declaration but have few questions:

There are number declaration options:

1. Employee
OR
2. Self-Employed person without 'Employees'

Which is the correct option?

Thanks

Oh dear this is complicated, since you are working remotely, you are not working in Belgium, you're working mainly in the UK and therefore subject to UK tax. In this day and age of remote working it would not be unusual for HMRC to enquire about this. You can't be an employee of a Belgian company and work in the UK.

You really need two contracts, a contract for work done in Belgium and a second one to cover your work in the UK. This might sound complicated but is the way to handle it. It even sounds as if this all taxable in the UK if you simply having meetings with the customer and therefore it is classed as business visits.

My advice is to talk to Sue at IPAYE, she is an expert in setting up cross-border payroll.

https://www.contractoruk.com/forums/...ief-guide.html

[psshutdown]

Oh dear this is complicated, since you are working remotely, you are not working in Belgium, you're working mainly in the UK and therefore subject to UK tax. In this day and age of remote working it would not be unusual for HMRC to enquire about this. You can't be an employee of a Belgian company and work in the UK.

You really need two contracts, a contract for work done in Belgium and a second one to cover your work in the UK. This might sound complicated but is the way to handle it. It even sounds as if this all taxable in the UK if you simply having meetings with the customer and therefore it is classed as business visits.

My advice is to talk to Sue at IPAYE, she is an expert in setting up cross-border payroll.

https://www.contractoruk.com/forums/...ief-guide.html

I'm not an employee of a Belgian company, my Ltd company will have the contractual agreement with the client in Belgium and i'm the employee of the LTD company (Director). I'm not going exceed 183 days in a year working there.

Below is on the Belgium sticky;

https://www.contractoruk.com/forums/...-security.html

The 183 Day Rule

For a long time the UK has applied the 183 day rule to determine if you are resident for tax purposes. Basically if you are in the country for 183 days in any calendar year, or an average of 90 days a year in any 4 year period, you are deemed to be tax resident.

A similar test exists in most EU countries. Travelling days are normally excluded, so only full days spent in country are counted. Gordon changed that in the UK recently by reducing the number of days you could claim as travelling.

This test is only really a problem if you intend to work in Belgium as self employed, and pay your taxes back in your home country. If you work under LIMOSA registration, or via your UK LTD CO as a foreign worker on assignment this is unlikely to be something to concern you.

[WTFH]

Are you direct into the client or through an agency/consultancy?

If it's not direct, where is the intermediary based?

[David71]

When I tried registering in the local commune last year (Kraainem) even though I was renting a flat etc. they didn't want to know me once I said I'd be spending more than 50% of my time back in the UK. It was a bit annoying in one sense as (for non-business reasons) I wanted to get a residence card.

On this basis I didn't bother with making a LIMOSA declaration and just treated my time in Belgium as 'business trips'.

I wasn't contracting to a Belgian client though so not sure if this would change things.....

[psshutdown]

Are you direct into the client or through an agency/consultancy?

If it's not direct, where is the intermediary based?

Not direct it is going through a Belgium based/registered Agency.

[WTFH]

Not direct it is going through a Belgium based/registered Agency.

Then either get the client or the agency to sort it out.

They will be able to fill it out in a way they consider correct.

[BlasterBates]

I'm not an employee of a Belgian company, my Ltd company will have the contractual agreement with the client in Belgium and i'm the employee of the LTD company (Director). I'm not going exceed 183 days in a year working there.

Below is on the Belgium sticky;

https://www.contractoruk.com/forums/...-security.html

The 183 Day Rule

For a long time the UK has applied the 183 day rule to determine if you are resident for tax purposes. Basically if you are in the country for 183 days in any calendar year, or an average of 90 days a year in any 4 year period, you are deemed to be tax resident.

A similar test exists in most EU countries. Travelling days are normally excluded, so only full days spent in country are counted. Gordon changed that in the UK recently by reducing the number of days you could claim as travelling.

This test is only really a problem if you intend to work in Belgium as self employed, and pay your taxes back in your home country. If you work under LIMOSA registration, or via your UK LTD CO as a foreign worker on assignment this is unlikely to be something to concern you.

The advice you read regarding the 183 day rule was not really accurate. It is a common myth that any assignment of less than 183 days is not taxable.

from Sue at IPAYE

I believe that I am exempt from local Taxation as my assignment will be less than 183 days in the country.

In most cases an individual on assignment will be liable to taxation on income arising in the country in which they are working from day 1. Some countries may ignore stays of a month or less. Generally, after 183 days the individual becomes tax resident in the country in which they work, as well as the country in which they live. This then means that the order in which income is taxed, and, in some cases the rate of tax withheld, is dictated by the relevant Double Taxation Treaty.

Advice from Sue at IPAYE

Don't make the mistake that as long as you are less than 183 days in Belgium it is no problem, it can be. However in your case as long as you simply attend meetings then it should be OK.

I would contact her about your LIMOSA registration. You need to make it clear that you will be working 90% remotely, otherwise the Belgian authorities might chase you for tax.

[Old Greg]

The advice you read regarding the 183 day rule was not really accurate. It is a common myth that any assignment of less than 183 days is not taxable.

from Sue at IPAYE



Advice from Sue at IPAYE

Don't make the mistake that as long as you are less than 183 days in Belgium it is no problem, it can be. However in your case as long as you simply attend meetings then it should be OK.

I would contact her about your LIMOSA registration. You need to make it clear that you will be working 90% remotely, otherwise the Belgian authorities might chase you for tax.

Sue @ IPAYE is the Boss Lady.

[psshutdown]

Thank you for your input, this information is very useful. I have spoken to a Belgian Tax adviser for clarity.