Contracting in Belgium -Through UK LTD. OR oversees trust?

**Fleetwood** · 31 May 2006, 07:11

I have worked in Belgium for eight years through an ITS scheme with no issues. The scheme I use requires you to register and be tax-resident in Belgium, which presumably you aren't as you're working through a UK Ltd.
You could just duck and dive and work through the UK Ltd, but it's not legal. Most contractors get away with it. The odd one doesn't and has to leave the country "quickly".
hth
ps. overseas

**ASB** · 31 May 2006, 08:25

Originally posted by Fleetwood

You could just duck and dive and work through the UK Ltd, but it's not legal.

Surely it's perfectly legal until such point as you become tax resident in Belgium (I don't know the criteria for that).

**Fleetwood** · 31 May 2006, 09:13

The whole point is that you are taxed on the money where you earn it.
And you have to register as soon as you get to the country.
You can operate through a UK limited for up to 6 months, BUT you have to declare your income to the Belgian authorities. They don't really recognise one-man Ltds, so would look at the company's turnover, not your miniscule salary, so be careful.
If you insist on being legal, and many aren't, and it's a short-term contract, then you could become an "employee" of a Swiss company that has sent you to Belgium on a consulting mission (

). You pay Swiss NI, and Belgian Tax on your nominal earnings, your flat is an expense that the company pays you for, you bill the company for the mileage you do etc etc.
For longer term assignments where totally legitimacy is a pre-requisite, a scheme from ITS or equivalent is what I would go for.

**WhoKnowz** · 31 May 2006, 09:20

Fleetwood - Thanks for your response. Do you have any idea regarding the specific questions I asked? Thanks.

- Can I switch over to a similar scheme after already contracting for 3 months without any added tax burden in UK/BE?
- Do I come under IR35 even though I am working outside the UK?
- How much can I net (% estimate) on annual earnings of 100k if I continue to work under my limited company?

**WhoKnowz** · 31 May 2006, 09:23

Also - Does anyone know any other credible companies which provide similar services to ITS?

**Fleetwood** · 31 May 2006, 09:37

- Can I switch over to a similar scheme after already contracting for 3 months without any added tax burden in UK/BE?
In UK, yes. Because you'd leave the UK and be a Belgian resident. If you "forget" to tell the Belgians you've already been working there, then what they don't know can't harm them.

- Do I come under IR35 even though I am working outside the UK?
No idea. Leave UK = no IR35

- How much can I net (% estimate) on annual earnings of 100k if I continue to work under my limited company?
No idea. If you don't wish to register in Belgium and want to continue to work through a company, then get a Luxembourg one off the shelf (?)

**Lockhouse** · 1 June 2006, 06:42

Supplemental

Sorry to thread hijack - Just a quick question: When contracting in Belgium do I have to know how to speak the lingo?

**tim123** · 1 June 2006, 07:09

Originally posted by Lockhouse

Sorry to thread hijack - Just a quick question: When contracting in Belgium do I have to know how to speak the lingo?

Which lingo would that be?

tim

**Lockhouse** · 1 June 2006, 07:17

Well, French I assume, I certainly wouldn't attempt Flemish.

Contracting in Belgium -Through UK LTD. OR oversees trust?