Contracting in Europe - is it worth it?

[europetractor]

Also news to me, but haven't done it for a couple of years.

If you do go the umbrella route, there's some fun tricks they like to pull - like technically taking you on via a Swiss company (outside EU but access to SM). Can work out quite well, as you'll pay income tax in country but Swiss social security (which isn't as onerous as others). Can also turn out to be total tulip when the Swiss company goes down the pan and runs off with your tax deductions, that you are 'legally obligated' (you're not) to hand over to them, for 'safe keeping' until you declare your income for the tax year.

Watch the bastards closely. They know you don't know the law at all. Much, much better to go via Ltd if you can.

In Swiss particularly, you are always given the local route, local umbrella etc. You'd have to be really really special to be able to pull own LTD contract in Swiss.

[stek]

In Swiss particularly, you are always given the local route, local umbrella etc. You'd have to be really really special to be able to pull own LTD contract in Swiss.

Where is this country called Swiss?

[stek]

Well I tried in Amsterdam, Switzerland and Germany, even if you get paid through your limited you are expected to pay tax for that country from the start, in the past you had a choice to pay tax either in the country you work in or the country you reside in (UK) as long as you come back to the UK a few weekends a month, but nowadays you have to get a social security and and work through umbrella like, some offer you like 70% of your income - 30% deductions to tax etc but others cut a lot more following the tax system in that European country...

But if others have different experiences please share, perhaps like one says the agencies I spoke with were trying it on?

I remember at the start of this century around 2000 lots of contractors here were working in Europe.

There was never any choice if where to pay tax, just it was easier to defraud the local tax regime a few years ago through ignorance of EU rules. Now they are more or less on the ball and go back for previous abusers, witness the German taxman cometh thread on here.

[SandyD]

There was never any choice if where to pay tax, just it was easier to defraud the local tax regime a few years ago through ignorance of EU rules. Now they are more or less on the ball and go back for previous abusers, witness the German taxman cometh thread on here.

Well I remember my agecies sending me accounting booklet where it said if you travel back to the UK most weekends then you can claim you are not resident and pay UK tax, it was in black and white all in an accounting advise handed to contractors.

[SueEllen]

Well I remember my agecies sending me accounting booklet where it said if you travel back to the UK most weekends then you can claim you are not resident and pay UK tax, it was in black and white all in an accounting advise handed to contractors.

And if an agency said the sky was green you would believe them.

As Stek said there was never any choice where you paid tax it was just various taxmen were slow in figuring out the change in how workers are engaged.

[SandyD]

I got a call today regarding working in Europe, they mentioned the B2B model of working, so there is hope !

[LondonManc]

I'd say don't do it, it turns you into scooterscot. He's a well balanced chap, big chip on each shoulder.

[Brussels Slumdog]

I guess working in europe is a grey area for most contractors
There are several factors that I take into consideration.
1 Double tax agreement and how world wide income is taxed and residency rules.Understand the difference between regression with retention ie Belgium and tax credit ie UK.
2 Employer social security rates
3 Employee social security rates
4 Tax rates depending on how long the contract is. How much do you need to earn before paying tax.
I had a contract one year in the UK from Feb to Sept ie 11000 tax free to April and another 11000 from april.
5 Allowable expenses. The UK is now a problem.

[Andy2]

its not worth it working in europe now
Switzerland 30% tax
rest of europe 35% tax
its better to work on a low paying contract in uk

[europetractor]

its not worth it working in europe now
Switzerland 30% tax
rest of europe 35% tax
its better to work on a low paying contract in uk

Plus British will soon have visas for europe .. that is a total show stopper for contracting ...