Recommend tax advisor (personal tax/NIC working from EU for UK company)

[Bobb]

I left contracting and went perm so my question isnt about contract taxation. But I believe here are a lot of knowledgeable people who can help.

I bought flat in Czech Rep (cheap life, less social tension). Dont speak any Czech though so I'd like to get a tax advice while I am here.

My employer agreed to let me work remotely.

I understand that HMRC will treat me as a non-resident and non-domicile (I will have most likely to leave my home (divorce)).

I also understand that there are two different areas to apply - personal income tax and NIC (I dont have any capital gains etc).

I dont mind to pay NIC as I'd hope to get back one day or at least to get UK state pension.

So basically my concern is the income tax.

From my understanding is that if there is a double-tax treaty between countries (and I believe CR-UK have one) then I should be paying tax to one state only. Thats I think the fact. However I really hope to pay CR tax because it is 15% but I am not sure where is a way.

I could probably open an Ltd in CR but this is very bureaucratic country and they have new law every month. I want to avoid this as long as I could.

So if anyone could please recommend a tax advisor who know EU laws and have some experience with people working on perm position remotely for UK companies.

[cojak]

Are you resident in the Czech Republic?

If you are then I would expect that you have to pay Czech tax.

Have you asked your employer about this?

[Scruff]

Erm... Where is your employer based?

If your employer is a UK business then you will be taxed as a UK employee.

You will usually be governed by the rules of the taxation authority in the country where your employer is based.

[Bobb]

yes that is going to be the case: I will be CR resident and the company is UK based.

[cojak]

Erm... Where is your employer based?

If your employer is a UK business then you will be taxed as a UK employee.

You will usually be governed by the rules of the taxation authority in the country where your employer is based.

Oh, I didn't know that.

[Clare@InTouch]

If the employer is a UK business but you're not resident or domiciled in the UK then you may be able to get an NT tax code which will mean no tax deducted from your wages in the UK. Call HMRC to find out if you're entitled.

If there's a double tax treaty it usually means that you'll only effectively pay tax in one country, but the way it works is to offset the tax paid (for example) in the UK against that which would be due in Czh. If UK tax is higher you have nothing to pay in Czh, but you don't get a refund if the Czh tax would have been lower. Overall you end up paying the higher rate between the two countries.

[taxguru]

I left contracting and went perm so my question isnt about contract taxation. But I believe here are a lot of knowledgeable people who can help.

I bought flat in Czech Rep (cheap life, less social tension). Dont speak any Czech though so I'd like to get a tax advice while I am here.

My employer agreed to let me work remotely.

I understand that HMRC will treat me as a non-resident and non-domicile (I will have most likely to leave my home (divorce)).

I also understand that there are two different areas to apply - personal income tax and NIC (I dont have any capital gains etc).

I dont mind to pay NIC as I'd hope to get back one day or at least to get UK state pension.

So basically my concern is the income tax.

From my understanding is that if there is a double-tax treaty between countries (and I believe CR-UK have one) then I should be paying tax to one state only. Thats I think the fact. However I really hope to pay CR tax because it is 15% but I am not sure where is a way.

I could probably open an Ltd in CR but this is very bureaucratic country and they have new law every month. I want to avoid this as long as I could.

So if anyone could please recommend a tax advisor who know EU laws and have some experience with people working on perm position remotely for UK companies.

To answer this query three points need to be considered:

1. Your employer - is based in the UK
2. Your tax residence - this is pretty straightforward these days; have a look at the statutory residence test. Either you're in or not. On the face of it you look non-resident. But if you were to go through the test you could decide for yourself whether you're conclusively resident or non-resident
3. Where the duties are performed - this is the most important. If your duties are performed in CR 100% then that income is not liable to UK tax.

However, please do note that even if you're a non-resident items like income from property will continue to be taxable in UK albeit at a specified rate of 20%.

[BlasterBates]

If you work in the Czech Republic you pay tax there. Effectively it's an export business.

You need to set up a Czech company or register as self-employed, run it through a Czech accountant. I don't know how the cross border VAT works that is usually tricky, but your accountant should sort all that out.

Probably nothing to register in the UK unless you actually spend more time than is necessary for business trips. This sounds like it is a Czech business.

You can't actually choose yourself where you tax yourself. That is governed by the rules. A common mistake contractors make. You can choose whether you work in the UK or Czech republic, but having made that decision it is down to the rules.