Belgium contract 6 month - UK LTD + LIMOSA

**stek** · 19 November 2015, 20:47

Originally posted by HPsauce View Post

Hi CUK experts -

I've got an interesting role in Belgium; I've read the related threads - looking for clarification, specifically the scope in regard to a six (6) month role (I'll tackle the 183-rule + local/SS taxes at a later date via umbrella/Belgian ltd., given extension).

FACTS:
1. I have a UK LTD company w/ FRS VAT registration. (I'm the sole director/employee).
2. I'll be contracted to a Belgian agency and client in Brussels.
3. Role is for a 6 month stint.

Questions:
1. The contract will be written under Belgium law, what considerations/clauses to T+Cs should I include to enforce/uphold UK ltd through UK/Belgium law?
2. I need to report for LIMOSA declaration - anything else? How and who do I notify end-date of employment either now or when contract finishes to Belgium authorities (just for added documentation, not sure if this is a possibility)?
3. Does it make much of a difference being paid in either currency, €EUR or £GBP for tax or legal status benefits (discounting conversion rates, bank fees, etc.)?
4. Are there other tax or legal considerations/advice that I've not stated that I need to consider or file?

Thanks,
HPSauce

There's a massive thread on the site some about Belgium, the consensus being unless the rate is stellar, don't bother. If the rate is over £650 a day might be worth it, Belgian SS is mad, you'll end up taxed at 56%...

Some folks will be on telling you 183 days is ok, but ignore them..

**HPsauce** · 19 November 2015, 21:01

Originally posted by stek View Post

There's a massive thread on the site some about Belgium, the consensus being unless the rate is stellar, don't bother. If the rate is over £650 a day might be worth it, Belgian SS is mad, you'll end up taxed at 56%...

Some folks will be on telling you 183 days is ok, but ignore them..

Thanks stek, much appreciated.

In this thread, Nodric mentions "months" to fall into the social security trap being self-employed through Limosa; enforcement % has only increased since then.

-HPSauce

**Boo** · 20 November 2015, 14:58

Originally posted by HPsauce View Post

Hi CUK experts -

I've got an interesting role in Belgium; I've read the related threads - looking for clarification, specifically the scope in regard to a six (6) month role (I'll tackle the 183-rule + local/SS taxes at a later date via umbrella/Belgian ltd., given extension).

FACTS:
1. I have a UK LTD company w/ FRS VAT registration. (I'm the sole director/employee).
2. I'll be contracted to a Belgian agency and client in Brussels.
3. Role is for a 6 month stint.

Questions:
1. The contract will be written under Belgium law, what considerations/clauses to T+Cs should I include to enforce/uphold UK ltd through UK/Belgium law?
2. I need to report for LIMOSA declaration - anything else? How and who do I notify end-date of employment either now or when contract finishes to Belgium authorities (just for added documentation, not sure if this is a possibility)?
3. Does it make much of a difference being paid in either currency, €EUR or £GBP for tax or legal status benefits (discounting conversion rates, bank fees, etc.)?
4. Are there other tax or legal considerations/advice that I've not stated that I need to consider or file?

You need to read this thread here :
http://forums.contractoruk.com/accou...-security.html

The 183 day rule definitely applies : you can ignore any posts here to the contrary from people who benefit from rakebacks from management companies etc. from a specialist contractor accountant where it says

Your treatment will depend on your residency and the duration of work assignment ‘183 day rule’.

If you are in the country for 183 days or more in any calendar year or for an average of 90 days in any four year period you are deemed to be tax resident. A similar test exists in most European countries.

Travelling days are normally excluded and only full days spent in the country are calculated

Do not use a Belgian management co whatever you do. Search here on ITECS to see why, but they are all just as bad as each other.

The best way for the contract to deal with your UK company is to make it the official party to the contract with your name only appearing as the contact person. Do not even have yourself personally named as the worker if you can possibly avoid it.

LIMOSA is not the bear it is made out to be - you don't receive a tax return from the Belgian Tax Authorities (BTA) based on LIMOSA but on whether you are registered as resident in the local commune. You need to register in the local commune *unless* you stay in a B&B or hotel etc.

If you rent a flat then you need to register with the LC and will most likely receive a Belgian tax return which will mean turning to a Belgian accountant for help at additional cost. Flat rental for less than 6 months in Belgium is a PITA anyway because they normally insist on a much longer commitment and mumble something about paying an excess to get out after 6 months if you don't stay. My advice is to avoid renting a house or flat like the plague.

It makes no difference what currency you are paid in in respect of taxation issues but be aware that you will likely be charged a conversion fee by your UK bank and may be hit by exchange rate fluctuations that occur during the length of the contract.

As people here have said, if you get caught by the Belgian tax system you will pay more than 50% tax and so you need to be certain from the outset that you will not be in Belgium for more than 183 days in total. Otherwise just make sure you are charging enough to pay your subsistence and travelling costs as well as UK tax and salary etc. It's very easy to underestimate and HMRC helpfully publish guidelines on what can be claimed in which country see "Worldwide Subsistence Rates", these are a useful guide to how much you are likely to incur in costs.

Hth,

Boo

Belgium contract 6 month - UK LTD + LIMOSA