Set up a UK limited company - home-based contract running from france

**Boo** · 24 November 2012, 21:49

Originally posted by dotker View Post

I actually have 2 questions :

1. I am currently working in Belgium for a 6 month contract. New to contracting, I chose to go for an umbrella company during that period. My contract has been renewed for 3 months, and all the papers have been sent to me by the agency, though I didn't signed anything yet. I was planning to set up my Ltd company but don't know where to start. Can the agency or the umbrella company be be opposed to this?
Could someone give me advice where to start in setting up my Ltd company.

Firstly there is a big thread on contracting in Belgium, it is a sticky and despite its length you need to read through it. Ignore all posts by BlasterBates - he represents an umbrella and his posts strongly reflect that fact and seriously misrepresent tax law as it aplies to working through a Ltd Co..

Secondly, I don't understand why you are thinking of starting a UK Ltd Co. ? From the rest of your posts it seems that you are a French National / Resident and if that is so then running your affairs through a UK Ltd Co. will not give you any tax saving as you will be deemed to be tax resident in either France or Belgium (or both) in any case.

If you are currently resident in the UK then it may be a sensible thing to do however.

To directly answer your question as to whether the Agency / Umbrella will object then it depends : a UK agency will not deal with an individual diresctly but you don't say where your agency is located ? A UK umbrella exists precisely to avoid the need for you to run a Ltd Co so there may be issues there. To answer the question you will need to say where the agency / umbrella are tax resident ?

Originally posted by dotker View Post

2. After that contract, I plan to move back to France where my family is based, and go for contract home-based positions. Where will I have to pay my taxes then (supposing that the end-client will be anywhere but not in France)?

You will be tax resident in France and will be taxed there. Depending on the specific arrangements that apply you may also be tax resident in the location of the client and may need to pay tax and social security there too.

Under these circumstances a UK Ltd Co. is of no advantage as all it means is a large amount of paperwork with the UK's HMRC and the best that could be hoped for is that you don't pay any UK tax in addition to the French tax you will pay and the tax due in the location of your Clients.

Hth,

Boo

**BlasterBates** · 26 November 2012, 09:34

Agree with Boo here that a Ltd company wouldn't be suitable. I don't represent an Umbrella, but I 've worked in several European countries and I know that many contractors are badly advised when working in Europe and end up with huge tax bills sometimes several years after they have left the country.

The rule is, to be safe tax yourself in the country you work in. It's not illegal to then claim exemption, i.e. if you are there less than 6 months you may or may not be able to do this. It is possible but is not automatic. It is better to go through the process of appealing a tax decision with a justification than to hide your affairs from them (the usual approach). If you don't submit a tax return they can justify estimating your tax, and you really don't want that.

Now if you are working in France at home you will be taxable there on that income that is attributable to the work you do there. If you have to travel to assignments depending on how long you work there, then the tax authorities may deem your income to be taxable there. Each case will be different.

It's complicated.