Contracting in Germany - Scheinselbständigkeit (dusguised enployment)

[BlasterBates]

Wondering about going to contract in Germany. This seems to have reared it's ugly head over the last year or two, having read an article.

I have had a query as to why I don't pay in, but I've been working in Switzerland for a few years so they didn't check or chase up any of my time in Germany, but I can imagine this is how they're catching people. If I had been working in Germany I can imagine they would now be demanding payment.

They seem to be checking a lot more thoroughly.

What are people doing here?

[PharmaContractor]

disguised...

This very issue cropped up recently with my client "Scheinselbständigkeit ". I am a locally registered freelancer here in Germany and pay all my dues here. Now the client is getting cold feet (after 1 whole year) as I am working direct for them without middleman agency setup. Their lawyers have advised them that this could be seen as disguised employment and therefore would like me to change my setup. They have offered me a 4 year fixed contract (semi permanent), but that way i lose out on the expense front. Or I can set up myself as a UK Ltd (like most others here) and that way they prove to the authorities that I am clearly a contractor. The only reason I chose the German freelance setup was to stay within the guidelines and not to complicate with tax issues.

The other way to assist my client would be for me to get some more clients on my books (difficult when I already work 40-50hrs and spend another 16 traveling between UK and Germany. Or set up as a GmBH.