I'm in a quandary. (Not using my regular account.)
Taxation question.
I've been out of UK for 6 years (aside from visits) but I still have bank accounts there. Worked in Germany from 04-07 using freelance status. Then totally de-registered and left never intending to return. Went backpacking in Africa.
Landed a 5 month contract with a German EB in Germany. Been here for last 3 months. Really need to invoice now but not sure where from. Former German accountant hasn't looked closely at my case but is suggesting tax would be lower if I set up a UK Ltd and invoice from there.
Experienced British contractors on the same site are are suggesting I am not liable for tax as it appears that I'm not tax resident in UK or Germany (183 days). They are saying that I should just invoice the basic value to the EB and they pay into my German bank account - they are happy to do that as taxation is my responsibility - and then just take it out and say nothing. I want that to be true but . . . surely it can't be.
Not sure whether to add VAT (German or UK) as I would then need to pay that into the system and become highly visible. ** But if I don't charge VAT and then later become liable for tax..... would I be expected to pay out VAT when I never even received it ???
My post still goes to a UK address but is forwarded (in case that is an indicator of residence)
Also I've been told to use someone like Pearl Systems to help me with the invoicing.
Anyone been in this situation ?
All advice is welcome.
AE
Taxation question.
I've been out of UK for 6 years (aside from visits) but I still have bank accounts there. Worked in Germany from 04-07 using freelance status. Then totally de-registered and left never intending to return. Went backpacking in Africa.
Landed a 5 month contract with a German EB in Germany. Been here for last 3 months. Really need to invoice now but not sure where from. Former German accountant hasn't looked closely at my case but is suggesting tax would be lower if I set up a UK Ltd and invoice from there.
Experienced British contractors on the same site are are suggesting I am not liable for tax as it appears that I'm not tax resident in UK or Germany (183 days). They are saying that I should just invoice the basic value to the EB and they pay into my German bank account - they are happy to do that as taxation is my responsibility - and then just take it out and say nothing. I want that to be true but . . . surely it can't be.
Not sure whether to add VAT (German or UK) as I would then need to pay that into the system and become highly visible. ** But if I don't charge VAT and then later become liable for tax..... would I be expected to pay out VAT when I never even received it ???
My post still goes to a UK address but is forwarded (in case that is an indicator of residence)
Also I've been told to use someone like Pearl Systems to help me with the invoicing.
Anyone been in this situation ?
All advice is welcome.
AE
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