Originally posted by lackorol
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Working from European country on UK contract
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Originally posted by lackorol View Post
Do I need apply for VAT with this LTD after reaching 85 000 pounds threshold?
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Originally posted by AndrewK View Post
In simplified terms - VAT is not applicable (EU VAT place of supply rule).merely at clientco for the entertainmentComment
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Originally posted by BlasterBates View Post
You have to be careful if you pay tax in the UK even though you are working in the Czech Republic. Normally they will take into account tax paid in the UK, but they may decide to enquire into your UK earnings, simply because they may well be miffed that you would not be paying tax in the Czech Republic. In this case they may ask for proof for travel and working in the UK. If you can't prove this they may well decide you shouldn't have been paying tax in the UK and charge tax in the Czech Republic. In other words you could end up being taxed twice because the Czech Republic deem your UK tax as unlawful.Comment
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Originally posted by eek View Post
And again too complex for your average agencyComment
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Originally posted by AndrewK View Post
How can it be *unlawful* if that is covered by a double taxation agreement? Also typically in such an arrangement, you set up a local LTD and bill a UK company using. That is the only profitable way. If you are using UK Payroll (inside), you could claim taxes back using self-assessment sa102, sa109 + HS302. But you will need proof that you have paid taxes in a foreign country.I'm alright JackComment
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I've done this in several countries. The answer is really f-ing simple.
HIRE A TAX PROFESSIONAL (or one in each country in your case).Comment
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Originally posted by ConsultingTechArchitect View PostI've done this in several countries. The answer is really f-ing simple.
HIRE A TAX PROFESSIONAL (or one in each country in your case).Last edited by eek; 7 June 2022, 08:10.merely at clientco for the entertainmentComment
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Originally posted by lackorol View Post
This is huge tax deduction approx 45% tax comparing against my own set up LLC
even if my contract would be only 500pd IR35 outside
Monthly Income means 10,500*0.80 (Corporate Income Tax 20%) equals 8400
Anyway I have conducted that this scheme inside iR35 + umbrella is really not so much efficient .
the umbrella taxes personal income and the remainder is yours to spend. all done. You keep 55%.
when you pay corporation tax ( no such thing as corporate income tax), it’s still the company’s money. To get out you need to take income and pay more tax on that.
See You Next TuesdayComment
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Originally posted by eek View Post
That solves the money issues it doesn’t solve the getting Work issues
1. You only work with clients that are happy for you to be abroad (plenty of organisations are scared of this).
2. You don't tell your clients where you are based and you take relevant SecOps precautions to make sure nobody finds out.
3. You work with clients in your locale (and accept the reduced rates etc.)
I'm not saying any of these options are right or wrong. I'm saying these are your only options.
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