Advice For Expat On UK Contracting

[SallyPlanIT]

[QUOTE=JonJ;1169649
Is there a better way to explain this situation so I can stand a chance of being considered? Or is it that most agencies won't consider other options. If so, is it possible to recommend any agencies that would consider a German freelancer?

Thanks,
Jon.[/QUOTE]

The Agencies Act 2003 explains that Agencies can only use Umbrella or Limited Company, it's law, not their choice.

[JonJ]

Thanks Sally. That looks like a lot to read through for tonight, so I'll have a look tomorrow.

I think I'm more confused than before.

My assumption is that in going through an umbrella company UK tax and NI will be deducted before I get paid. If I go through a limited company I will be liable to pay UK taxes. Have I understood at least this correctly?

As I was only looking at a short term UK contract as a way to give me more options, it seems like an impossible option to go through an agency (without paying tax in two countries and having to sort things out afterwards), and only possible if I contract with a company directly that I can invoice, which could be very difficult to find.

Or am I talking rubbish?

[SallyPlanIT]

Thanks Sally. That looks like a lot to read through for tonight, so I'll have a look tomorrow.

I think I'm more confused than before.

My assumption is that in going through an umbrella company UK tax and NI will be deducted before I get paid. If I go through a limited company I will be liable to pay UK taxes. Have I understood at least this correctly?

As I was only looking at a short term UK contract as a way to give me more options, it seems like an impossible option to go through an agency (without paying tax in two countries and having to sort things out afterwards), and only possible if I contract with a company directly that I can invoice, which could be very difficult to find.

Or am I talking rubbish?

Oooh, sorry to confuse you! I wouldn't read the agency regulations, it was just as proof that it is law, not umbrella's being awkward.

Whether you trade as a limited company or through an umbrella largely depends on:
1) Length of contract
2) IR35 status
3) Contract hourly/daily rate

There are more tax savings to be made through limited company.
In an umbrella, all your expenses are tax free but your income is charged through PAYE.

If you would like me to call you and discuss in relation to you personally in detail, I'm happy to do so, please PM me your contact details.
I'm unavailable today but will be on Monday.

[cojak]

hahahaaaaa.....you can always rely on the internet for great advice



...your English isn't top notch either chum

Germany has quite a bit of contract work, on the whole German language skills are required. Depending on your exact circumstances and how you run things in the UK overall deductions can be (much) higher.

And talking about language skills, frankjj's English is perfectly acceptable and certainly better than most users foreign language skills on here.

Welcome frankjj.

[JonJ]

Oooh, sorry to confuse you! I wouldn't read the agency regulations, it was just as proof that it is law, not umbrella's being awkward.

Whether you trade as a limited company or through an umbrella largely depends on:
1) Length of contract
2) IR35 status
3) Contract hourly/daily rate

There are more tax savings to be made through limited company.
In an umbrella, all your expenses are tax free but your income is charged through PAYE.

If you would like me to call you and discuss in relation to you personally in detail, I'm happy to do so, please PM me your contact details.
I'm unavailable today but will be on Monday.

Thanks Sally,
I've been thinking about and researching this over the weekend, and I do now think that I have been confusing things as I have been interlinking two questions, which I need to view as separate. Which are;

1. How do I get a UK contract?
Go through a UK Umbrella or Ltd.

2. Do I have to pay tax in the UK and Germany?
I would be liable to pay UK income tax on UK earnings, but due to the Double Taxation Agreement between UK / Germany, may either be able to claim back a percentage of UK taxes paid or not be liable for them in Germany. I need to investigate this more to find the actual answer. The Accounting / Legal forum would be a better place to ask this.

The points you raise are also interesting. I'm not sure, as a non-resident looking to do a single 2-3 month contract in the UK, if setting up a limited company is practical, or shows too much commitment to the UK.

I'll send you a PM (assuming that as a newbie I am allowed to do that).

[SallyPlanIT]

Hi JonJ

I have sent you a PM

Regards
Sally