IT contractor working abroad in Sweden , subsistence allowence and taxation?

[GGWP]

I am an IT contractor who has incorporated a limited company in the UK but will be working in Sweden. I will be receiving payment in my UK company bank account. Can I claim all of my expenses for a year while working abroad, given the temporary workplace 24-month rule? The HRMC lists the following rate for Sweden as shown in table below . For easier calculation, let £1 equals 10 kr.

I have one more question. If I am earning £100k per year, what is the most tax-efficient way to withdraw money?

Stockholm, Sweden

Over 5 hours	379
Over 10 hours	857.50
24 hour rate	917.50 plus room rate
Room rate	1,939.50
Breakfast	0 (included in room rate)
Lunch	345
Dinner	445
Other	0
Drinks	67.50
Hotel to office	60
Total residual	917.50 = £90

[cojak]

Have you checked if you’re liable for tax in Sweden? My bet is that you will be.

(Tax is usually demanded where the work occurs.)

This is old and you need to read about visas somewhere else, but it’s a place to start your research:

https://www.contractoruk.com/contrac...money_tax.html

[cojak]

Also, has the agency arranged your visa to work in Sweden?

More information can be found here: https://www.gov.uk/guidance/travel-to-sweden-for-work

[eek]

Get some proper advice as you have the UK stuff wrong (you can sanely only split income with a spouse) and that’s before we look at the overseas part of it (which is so complex and you are missing so much that I don’t even know where to begin)

And be prepared to discover you are incredibly poorly pay relative to others in Sweden - it’s not cheap there

[GGWP]

Also, has the agency arranged your visa to work in Sweden?

More information can be found here: https://www.gov.uk/guidance/travel-to-sweden-for-work

Hi thanks for your reply, I do not visa I have resident status in Sweden and I am British national.

[Fred Bloggs]

What they said. I do not believe you can work in Sweden without paying tax in Sweden. The UK Ltd Co could be regarded by Swedish tax office as being domiciled in Sweden too. This story has all the hallmarks of a train wreck at the moment.

As eek said, the first post is so ignorant of the reality of cross border working, it's difficult to know where to start with this.

[GGWP]

Have you checked if you’re liable for tax in Sweden? My bet is that you will be.

(Tax is usually demanded where the work occurs.)

This is old and you need to read about visas somewhere else, but it’s a place to start your research:

https://www.contractoruk.com/contrac...money_tax.html

What happens if I take all my dividends and salary in the UK, will I be still taxed in Sweden?

[cojak]

What happens if I take all my dividends and salary in the UK, will I be still taxed in Sweden?

You’ll be taxed in Sweden from day 1, you won’t have to pay tax in the UK.

You’ll need to speak to an accountant who understands this stuff, not internet strangers.

[Lance]

if you live in Sweden you're going to struggle to claim rent as expenses from the UK tax man.
And you ask about rent but have hotels in the table. What is it?
Or are you living in the UK and traveling for work?
If it was me I'd try to keep my time in Sweden down to just important meetings, and do most of work from home in the UK.
But you then claim to be Swedish resident....

This just sounds like a complex way to avoid being taxed for a job in Sweden when you live in Sweden. If that is the case then why involve the UK at all? There are better countries in the EU to run a LTD company from.

[lecyclist]

If you are getting paid somewhere around €1000 per day equivalent, and are tax resident in Sweden, you can expect to pay over 50% tax to the Skatteverket on a long contract. You will really need to find a local accountant in Sweden to help you maximise the taxable deductions, because you will need these savings when going to a bar to buy a €10 beer to drown your tax sorrows. I would suggest at least in this scenario, minimising Swedish social security by submitting an S1 application in the UK to HMRC.

If you are resident in Sweden, you will have a personnummer, and are already on the tax authorities radar. The people I know who worked through their UK limited company (not recommended) typically had no footprint in Sweden.

That being said, if you have a high attitude to risk, and don't mind the possibility of the Skatteverket doing a workplace employment audit that flags up your name, and then retrospectively many years later chasing you for back taxes and penalties, then go ahead and work through your UK limited company. I imagine the possibility of this is small, especially if you have Swedish permanent residence and don't get a stamp in your passport every time you enter/ exit Sweden.

Best option is to keep work in Sweden to a minimum, paying yourself through your UK limited company.

Next option is to suck up the tax in Sweden.

Another option is to cut and run: work 3 months through your UK limited company, and then resign. In this instance, due to the relatively short time involved, I would think it very unlikely you would be investigated retrospectively, but I appreciate this is not really the answer you are looking for.