Contract in Denmark

[BlasterBates]

Yes usually an Umbrella will allow you to pay UK NI. They setup a small part of the contract in the UK, a "market research" contract, send you a market research form to fill out and as long as you keep some flight tickets to prove you were in the UK for a short period you can pay UK NI.

[SueEllen]

Yes usually an Umbrella will allow you to pay UK NI. They setup a small part of the contract in the UK, a "market research" contract, send you a market research form to fill out and as long as you keep some flight tickets to prove you were in the UK for a short period you can pay UK NI.

Actually you can do it legit without that tulip.

(Though I did drop my laptop with all the information I dug up so can't tell you exactly how.)

Here's a link about it (scroll down to near the bottom of the page) to see the Portuguese example - National insurance ? contributions and benefits

I seem to remember it's to do with you being a temporary worker abroad i.e. under 6 months and having a UK employer/UK links. HMRC have more pages on it.

This is one of the reasons why the government will have difficultly combining NI with income tax.

[Contractor UK]

CUK guide to Denmark

Money and Tax guide to contracting in Denmark here.

[chef]

Does anybody have a recommendation for a decent Danish accountant?

I ask as it's looking likely I'll have 3 months work in Denmark before the end of the year and want to know the answer to 3 questions:

1) Working via a Uk based Agency in Copenhagen where the end client (not the person who pays me) is Danish, mon-fri on 500EUR a day + flights and hotel expenses, commuting home at weekends for a 3 month contract (and it will be 3 months only for definite even if an extension is offered), would I be liable to pay tax in Denmark?

2) If the answer to the above question is "yes", roughly what rate of tax will i pay given that I have no residence in Demark (hotel living due to expenses being paid) and I maintain my main residence in Germany, i am single, no kids, not religious

3) Assuming I do need to pay tax, how do I go about it the most tax efficient way? I currently work as freelance in Germany and so have no Ltd company.

[doodab]

Does anybody have a recommendation for a decent Danish accountant?

I ask as it's looking likely I'll have 3 months work in Denmark before the end of the year and want to know the answer to 3 questions:

1) Working via a Uk based Agency in Copenhagen where the end client (not the person who pays me) is Danish, mon-fri on 500EUR a day + flights and hotel expenses, commuting home at weekends for a 3 month contract (and it will be 3 months only for definite even if an extension is offered), would I be liable to pay tax in Denmark?

2) If the answer to the above question is "yes", roughly what rate of tax will i pay given that I have no residence in Demark (hotel living due to expenses being paid) and I maintain my main residence in Germany, i am single, no kids, not religious

3) Assuming I do need to pay tax, how do I go about it the most tax efficient way? I currently work as freelance in Germany and so have no Ltd company.

Dunno if this is any help.

Virk.dk - English

This looks like it might be a handy reference as well.

European Commission » Internal Market » Points of single contact

[doodab]

OK just looking at this as I might be off there myself. It seems the flat rate expat scheme might only apply if you don't participate in the management or control the capital of the firm employing you during the preceding 5 years, and it doesn't apply if you are self employed.

Does anyone know if this is the case?

[manjambo]

This is all good information and thank you very much.
On SKAT I'm seeing something in this link about double taxation?

So as an example, say my daily rate is £300 pd for a 12 month contract which say grosses £66,000. But my company only pays me a salary of £6,000 leaving £60,000 in dividends. The dividends are paid in the UK (assuming the certificate mentioned is forthcoming from HMRC).
Hence:

• 6,000 danish taxed
• 60,000 uk taxed

or have I misread something?
Regards

[BlasterBates]

This is all good information and thank you very much.
On SKAT I'm seeing something in this link about double taxation?

So as an example, say my daily rate is £300 pd for a 12 month contract which say grosses £66,000. But my company only pays me a salary of £6,000 leaving £60,000 in dividends. The dividends are paid in the UK (assuming the certificate mentioned is forthcoming from HMRC).
Hence:

• 6,000 danish taxed
• 60,000 uk taxed

or have I misread something?
Regards

This most likely won't work. Generally you have to register in the country you do business in. You can't just run from a UK Ltd, what you would have to do is to setup a branch in Denmark and register it there. All company profits will be taxed in Denmark, probably the dividends too.

Your solution, whatever it is, will probably have to be a Danish one. You need to talk to a Danish accountant.

That's not to say you can't use your UK Ltd but you have to register it in Denmark and keep separate accounts for Denmark, and that branch would be taxed as a Danish company.