Belgium

[expat]

...Anyone had firsthand experience of companies named ITECS, Pearl or Professional and Business Plus (PBP Group)?....

Not quite, but I did call ITECS for info once. They insisted on reading out to me the advantages of their offshore scheme, provided that I would be non-resident in the UK during the contract, even when I told them that I would remain UK-resident and that in any case I was not interested in any such scheme.

This suggested to me that:
1. the offshore scheme was probably the attractive part of their "solution", without it I might not like it.
2. they weren't interested in listening to what I wanted to say.
3. I probably didn't want to go with them.

This is all just an impression though; maybe I got a trainee sales person on the phone. It was moot, I didn't take the contract anyway.

[BlasterBates]

I was with ITECS, their rep said words to the effect of "for adventurous clients we offer an offshore solution" and sort of sniggered as if he was offering me cocaine, I opted for the legal solution.

All these managment companies will offer to put money in an offshore account if you want them to. That is why I strongly advise using an independent advisor first, and let him help you choose a solution.

[Rantor]

I was with ITECS, their rep said words to the effect of "for adventurous clients we offer an offshore solution" and sort of sniggered as if he was offering me cocaine, I opted for the legal solution.

All these managment companies will offer to put money in an offshore account if you want them to. That is why I strongly advise using an independent advisor first, and let him help you choose a solution.

A chap I'm working with is using ITECS at the moment and the fees are very high. He is using a payroll type system (non-EU) and I think his net retention is something like 42% i.e. he 'loses' 58% in taxes and fees

[BlasterBates]

When I compared ITECS to other companies there wasn't much difference. I don't think ITECS is any worse than others. If you have a low tax bill you have to question how legal this is. I could imagine that if you set yourself up as self employed this coiuld be much better.

[Rantor]

When I compared ITECS to other companies there wasn't much difference. I don't think ITECS is any worse than others. If you have a low tax bill you have to question how legal this is. I could imagine that if you set yourself up as self employed this coiuld be much better.

Not in belgoland - you might keep 45% if you were clever with your expenses. The killer is the employer/employee social taxes. 'Real' self-employement (equiv to sole trader?) is the worst tax status hence most self-employed use their own ltd co and this is not readily accessible or attractive to buitenlanders (same qualification restrictions plus 7k capitalisation plus 1.5k fees.)

This is why the mgmt companies have a ready-made market.

[skubidoo]

Hi,

I'm in the same boat now. Can you advise? What did you end up doing?

Cheers.

When life serves up lemons, make lemonade. In this spirit, as our proud national currency circles the plughole I am about to take up a contract in Belgium, which is now worth about 20% more than when I negotiated the day rate, that being the amount by which the £ has declined relative to the € in the interim.

The downside, of course, is the layers of EU bureaucracy which seem designed explicitly to make such labour mobility unattractive, and I wondered if any readers have been there, done that? Specialist knowledge of the minefield of employment laws, taxation arrangements, VAT and incorporation rules seems thin on the ground, and usually provided by some shyster who wishes to sell one a payroll management scheme of dubious legality.

A currently nebulous plan is coming together to trade thru my UK Ltd Co, for the first 6 months, then become 'tax resident' in Belgium and either become Belgian and self-employed for tax purposes, which apparently means I have to eat chips with mayonnaise and pay 50% tax or else investigate one of the aforementioned umbrella or payroll schemes ....

Anyone got any tips, anecdotes or valuable experience? I should make it clear that I am not interested in any scheme that involves payments to offshore or 'private' bank accounts unknown to the HMRC, double taxation treaty abuse, or anything not totally compliant with the relevant legislation; a simple point that seems to gobsmack some of the salespeople I have been dealing with ....

C.