UK agency. German client

[LegendsWear7]

Just had a chat with an agent who has put me forward for a contract in Hessen, DE (where I also live).

I have no Ltd as I left the UK many moons ago.

Old German agency was happy to pay me direct as I have freiberufer /freelance status.

UK agent isn't familiar with German situation (obviously) and states that I must use a management company as agency will never pay me directly.

I will not use a management company given what happened last time. http://forums.contractoruk.com/accou...an-cometh.html

Creating a Ltd entity in UK when I'm non-resident there doesn't make sense to me. I'm clearly resident in DE and all the work will be performed and managed locally.

*If* I get the offer should I just try to explain that paying direct to me is OK *from the German perspective* ?

I guess the agency doesn't want to 'employ' from the UK legal perspective. Bloody inconsistencies in the harmonious EU.

What's the solution here ?

[TiroFijo]

Use a management company and split the income

[darmstadt]

I've had the same problems with UK and other country agencies in this regard. In the end I have either not accepted the contract or pointed out to them that I am resident here and that I am responsible for my tax affairs, there will be no comeback on them at all even to the point of signing something to that effect. The agency have to pay direct, ask him how German agencies do it with Germans seeing as management companies are basically illegal here?

[nodric]

Provided you fully demonstrate your tax legal status in Germany, no agency should refuse to pay you direct, assuming you issue them a valid invoice bearing your various numbers etc.

Use of a split scheme will for sure lead you directly to a cell. However, you can use an intermediate 'management' company to do your billing, and as long as you receive and declare 100% of all the income, less their fee for doing the invoicing, all should be well. Just keep all papwerwork and hide nothing.

Of course the fact that having someone do your invoicing will cost you anything from 2-500 Euros per month is another issue. Maybe ask the agency to pay?!?

[BlasterBates]

If you went through a Ltd, you would have to register it in Germany, and would be subject to "Gewerbesteuer", i.e. it would be no different to a GmbH. Many small Germany co's are registered as Ltd, simply because you don't need to put up EUR 25000 of capital and cheaper to register, but they're still registered with the Finanzamt.

The best way forward is as a Freelancer. In future I would only go through German agencies. You can always find the same contracts on www.gulp.de through a German co.

Perhaps you should dump the agency and just reapply through a German co.

[LegendsWear7]

In future I would only go through German agencies. You can always find the same contracts on www.gulp.de through a German co.

Perhaps you should dump the agency and just reapply through a German co.

Agreed (normally). First thing I did when I heard about the contract was to search jobs sites including Gulp. It is a UK based company with a small presence in Deutschland. I've found it with four UK agencies, none in DE. Same as my last contract in fact.

It is Freelancer or nothing. If I get the offer I'll explain all and see what they say.

[Brussels Slumdog]

Higher rate offset

Use a management company and split the income

Increase the rate by €20 which will pay the management company

The next time you quote a UK Agency quote them a direct rate and one
rate via management company

[darrenb]

Agreed (normally). First thing I did when I heard about the contract was to search jobs sites including Gulp. It is a UK based company with a small presence in Deutschland. I've found it with four UK agencies, none in DE. Same as my last contract in fact.

Any theories on why a German contract would be advertised in the UK and not in Germany?

Germans too wise to take it?

[TheFaQQer]

Any theories on why a German contract would be advertised in the UK and not in Germany?

Germans too wise to take it?

Lack of skills?

Development for my current client is based mainly in Berlin, but the role was advertised in the UK. if you can't get the right people, you need to look further afield.