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Working in UK on contract for German company

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    Working in UK on contract for German company

    I shall soon be working for a German company, but from home in UK. I have a Ltd company, they want to pay me by cheque to my name .. can I pay personal cheques into my Ltd company account ( for tax reasons ) ? as it would then appear as a payment to the company as far as HMRC are concerned... and if it is not legal, can they find out ?

    Cheers

    #2
    A few options - some of which you should run past your accountant
    1) Get them to invoice and pay your company directly. There is no reason for them not to do this that I can think of.
    2) Operate as a sole trader for this contract
    3) Declare the money as "other" income on your tax return.
    Down with racism. Long live miscegenation!

    Comment


      #3
      Just get them to write the cheques to the name of your Ltd.

      Sounds very old fashioned!

      Can't they do a bank transfer to your company account ?
      I'm alright Jack

      Comment


        #4
        Originally posted by NotAllThere View Post
        A few options - some of which you should run past your accountant
        1) Get them to invoice and pay your company directly. There is no reason for them not to do this that I can think of.
        2) Operate as a sole trader for this contract
        3) Declare the money as "other" income on your tax return.
        Any particular reason why it would be better to do this than go through his ltd?

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          #5
          Originally posted by VillageContractor View Post
          Any particular reason why it would be better to do this than go through his ltd?
          Usually more tax efficient, and the dosh ends up in your personal account not mostly stuck in a low-interest business account.

          Comment


            #6
            Thanks for the replies

            Thanks, I shall speak to them - it does sound old-fashioned, I was more concerned that if I work as sole-trader rather than thru limited then I would pay more tax, but I was afraid that to contract my Ltd to them would require some 'Arbeit....wotsit...' agreement, and then get cobbled by the German tax robbery system...... its all new to me, done two UK contracts but no overseas ones yet.
            All advice very welcome.
            Thanks again for the replies.

            Comment


              #7
              If you are working at home in the UK you have no German tax to pay. This is purely a UK business.
              I'm alright Jack

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