Working in Belgium via Connexion

[victim33]

Another newbie

I've been following the thread for a few months now and this is my first post. Thanks to all of you for info posted so far.

I worked on a contract via Connexion in Belgium for just under a year in 2006/7 but am now back in the UK. It was my first, (& probably last!) time contracting.

Being pretty naive at all things contracting, tax, accounting etc, I've signed up see if I can get some help in navigating through the current situation. I would appreciate it if I could run though my circumstances confidentially with one of you guys, and help screen info that might be worth posting to the forum.

[GuestFromIt]

Hi to all

Hi to all.

Any news about the reliability of ICC/Connexion today?

Any guys working with them at the moment? I need some information and i don't know if i can trust what they are telling to me.

please contact me via pm if you can help me, thanks

[JustMe]

No news.

Hi to all.

Any news about the reliability of ICC/Connexion today?

Any guys working with them at the moment? I need some information cause and i don't know if i can trust what they are telling to me.

please contact me via pm if you can help me, thanks

So what are these sc.bags telling you ?? Do not trust them

[nodric]

Run run run as fast as you can.

Only a certifiable loony would ever go near those schisters ever again! They are responsible for the misery of many contractors, and for worsening the situation in Belgium for those that are still here, or wish to come here.

I wouldn't give them the scrapings from my rectal passage!

Enough said?

[mrshabbs]

Any advice appreciated

Run run run as fast as you can.

Only a certifiable loony would ever go near those schisters ever again! They are responsible for the misery of many contractors, and for worsening the situation in Belgium for those that are still here, or wish to come here.

I wouldn't give them the scrapings from my rectal passage!

Enough said?

Nodric, is ther anyway I can mail you in private with my query Thanks in advance

[mod] No there isn't, you don't yet have PM privileges, request sent to admin [/mod]

[fm123]

mrshabbs:

Don't go with any management company. None of them are legal. If you want to stay out of tax trouble in Belgium, you have to be 100% legitimate. That means declaring ALL your earnings in Belgium. I go through my own limited company (SPRL). That's the best way I know of.

All the mancos are full of cr'p. Don't let them persuade you otherwise.

[Boo]

If you want to stay out of tax trouble in Belgium, you have to be 100% legitimate. That means declaring ALL your earnings in Belgium.

Or you can work through your UK Ltd Co. for 183 days without entering the Belgian Tax system...



Boo

[fm123]

Or you can work through your UK Ltd Co. for 183 days without entering the Belgian Tax system...

Boo

When we say working through a UK Ltd company, I assume this means paying all tax in the UK.

I know some UK contractors who do this, and it seems to be a widely held belief among UK contractors that this is a 100% above board way of contracting in Belgium.

I've also spoken to Belgians and people from other countries about this, and they've told me this is rubbish.

Furthermore, I knew a UK contractor who worked through his UK company, but was told that the Belgian client would no longer accept this.

I would think it's feasible that contracting through a UK company would work initially, perhaps on a 6-monther. But I don't understand how long term that money earned in Belgium wouldn't be taxable in Belgium. Also a typical working year is something like 220-240 days, so how would the 183 day rule work, for anything other than one short term contract?

Where exactly does the information come from that working through a UK Ltd company is a perfectly legal way of contracting in Belgium?

I would love to know from someone more informed than me about this, but my hunch is that this is rather dodgy.

[Boo]

When we say working through a UK Ltd company, I assume this means paying all tax in the UK.

Yep.

I know some UK contractors who do this, and it seems to be a widely held belief among UK contractors that this is a 100% above board way of contracting in Belgium.

Yes, because it is.

I've also spoken to Belgians and people from other countries about this, and they've told me this is rubbish.

They are wrong.

Furthermore, I knew a UK contractor who worked through his UK company, but was told that the Belgian client would no longer accept this.

After 183 days the situation changes. It is up to the client whether they will accept someone from a UK Ltd Co. in the same way it is up to them whether they will accept someone in a paisley shirt.

I would think it's feasible that contracting through a UK company would work initially, perhaps on a 6-monther.

It is certainly the case that any EU company may send an employee to work in any other EU country for up to 183 days without that person becoming liable for taxes in that country. During those 183 days the employee remains taxed in the country in which their company is registered.

But I don't understand how long term that money earned in Belgium wouldn't be taxable in Belgium.

What part of the phrase "183 days" is causing you difficulties ? (Actually there do exist ambiguities and differences in the way the 183 days are counted in different countries within the EU, but 183 days elapsed time in total is safe everywhere.)

Also a typical working year is something like 220-240 days, so how would the 183 day rule work, for anything other than one short term contract?

It doesn't. You can't work for longer than 183 days without becoming liable to be taxed in the destination country.

Where exactly does the information come from that working through a UK Ltd company is a perfectly legal way of contracting in Belgium?

It's widely known EU law ?

I would love to know from someone more informed than me about this,

Then you need to speak to a Belgian accountant.

but my hunch is that this is rather dodgy.

No. But you only get to do this for 183 days.

Boo2

[fm123]

No. But you only get to do this for 183 days.

Boo2

I found some links on the subject:


EU - Taxation for workers on postings in other countries - Your Europe

BELGIUM

http://us.kpmg.com/microsite/tax/ies...s/fa05-094.pdf


Going by line 1 you can work for up to 6 months - as you said - in another EU country without registering with the local tax authorities.

In link 2 - which is not as 'official' as link 1, but is specific on Belgium - it suggests that Belgian-sourced income is liable for tax in Belgium. Link 3 seems to confirm this although I must admit that I didn't fully understand the wording in this link.

In other words:

1) The 183 days appears to be intended for larger companies (not one-person UK contracting firms) who send their employees on business to another EU country on a part time basis. It's not a dodge for UK contractors to work in another country and to not declare tax on income clearly earned in that country. I am obviously not a tax accountant. I'm speculating, but to me this is a 'grey' area. And one that the authorities could 'clarify' (to the contractor's disadvantage) at any time.

2) Even if the 183 days is allowable, it is still not a solution for anyone hoping for an extension to an initial short contract, or indeed anyone who has already been here longer than 6 months.

To me this a very dodgy area. Perhaps you're right, you might get away with it on a short term contract. Although you could probably work here for a few months, not declare anything, and then vanish at the end anyway. And if you did get caught, back tax for 6 months would be more of a nuisance, rather than a life-ruining catastrophe.