So I moved to Germany at the end of the year.
I was previously a self employed consultant working through a UK Ltd company. I stopped paying myself any salary before I arrived.
When I arrived, I began the process of applying as self-employed (gewerbetreibende) which is still dragging on for almost 3 months now - that's Germany bureaucracy for you. I'm still waiting for my business tax number to arrive so I haven't been able to invoice any old or new clients yet, which have gone through the UK company. I'm already paying social insurance, etc, in germany and I want to transfer all my business to my new German form.
In the meantime, my UK company still has income coming into it from my previous clients, as well as new contracts signed which last for a few months more. So it's likely that income will continue to come in even as I start to operate in germany under the new form.
I want to know what is the "right" way to transfer my income from the UK company to my German business form. I've heard about the possibility of my german company contracting the UK company for services, which seems like it would be the simplest. I also know I could also pay myself dividends which would be taxed as part of my income in Germany, but ideally I would want it to go to the business, as I need to use the income to pay for business expenses and an employee.
I eventually want to wind down the UK company at the end of the tax year.
Has anyone been in a similar situation and can offer some advice? I will of course be seeking some professional help, but any pointers would be appreciated. My UK accountant wasn't particularly helpful in this area, so I'm going to try someone on the german side.
I was previously a self employed consultant working through a UK Ltd company. I stopped paying myself any salary before I arrived.
When I arrived, I began the process of applying as self-employed (gewerbetreibende) which is still dragging on for almost 3 months now - that's Germany bureaucracy for you. I'm still waiting for my business tax number to arrive so I haven't been able to invoice any old or new clients yet, which have gone through the UK company. I'm already paying social insurance, etc, in germany and I want to transfer all my business to my new German form.
In the meantime, my UK company still has income coming into it from my previous clients, as well as new contracts signed which last for a few months more. So it's likely that income will continue to come in even as I start to operate in germany under the new form.
I want to know what is the "right" way to transfer my income from the UK company to my German business form. I've heard about the possibility of my german company contracting the UK company for services, which seems like it would be the simplest. I also know I could also pay myself dividends which would be taxed as part of my income in Germany, but ideally I would want it to go to the business, as I need to use the income to pay for business expenses and an employee.
I eventually want to wind down the UK company at the end of the tax year.
Has anyone been in a similar situation and can offer some advice? I will of course be seeking some professional help, but any pointers would be appreciated. My UK accountant wasn't particularly helpful in this area, so I'm going to try someone on the german side.
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