Contracting Abroad - using EU Payroller - what to do with UK Ltd company.

[robinsond1967]

Need a bit of advice please.

I've been contracting through my UK Ltd company for 15 years.

My next gig is in belgium - and I may be there over a year. The agency is pushing me down the route of using a company such as Globo or Tressag who provide payroll for foreign workers. The agency (says the client) is reluctant to allow contractors like myself to use my own Ltd company. The reasons given were that by ensuring that contractors use one of their preferred payrollers - they ensure the contractor is tax compliant - and theres less hassle for them later on.

I'm happy with this. It all seems above board - and I don't have any worries about that - or about the costs/sums involved (> 70% retention).

My question surrounds what to do with my Ltd company - I still need to somehow feed some money into it (to pay accountant & corp tax, plus i have a company vehicle still with 2 years left on the lease). I don't want to close it down but might not use it for over a year. The money I get through my payroller will already be taxed.

Please don't advise "Tell the agent to get stuffed unless they let you work through your Ltd company" as thats not really the advice I'm looking for.

Thanks in advance.


So

[SueEllen]

As you can't close your company down or make it dormant unless you pay off the lease the only option is to tell your accountant to cease doing your pay roll.

Then you need to feed your own personal money into it as a directors loan to pay the company's expenses i.e. accountants fees, vehicle lease

Once you can come back to the UK and start working here again you can get the loan money back from the company.

[Taxless]

I think a key question is what you intend to do with the company long term and do you have any emotional attachment to its name.

If Belgium will be a one-off and you will operate through the UK Ltd again after that, it may be as well keeping it.

If there is some cash in the company, but not too much, you might be able to shut it down paying only 10% tax on what you get out, but it would be a number crunching exercise, see this forum :

http://forums.contractoruk.com/accou...n-company.html

You would also need to weigh any tax saving now against the costs of setting up a new company when you come back.

If you were to pay some of your foreign earnings into the company, it is not income earned by the company so will not be subject to CT. It will be treated as a loan from you to the company and will form the basis of a directors loan account balance.

The money can then be used to pay the CT, accountant etc. Once the company starts making money again when you return, that money can then be extracted by you, free of taxation.

When you say you have a company vehicle, if this is a car then you will still be liable to a taxable car benefit as a continuing director of a UK company. Another number cruch to see if this is really ideal, assuming the lease could be moved to your personal name.

[JustMe]

Example of Tentoo

Need a bit of advice please.

I've been contracting through my UK Ltd company for 15 years.

My next gig is in belgium - and I may be there over a year. The agency is pushing me down the route of using a company such as Globo or Tressag who provide payroll for foreign workers. The agency (says the client) is reluctant to allow contractors like myself to use my own Ltd company. The reasons given were that by ensuring that contractors use one of their preferred payrollers - they ensure the contractor is tax compliant - and theres less hassle for them later on.

I'm happy with this. It all seems above board - and I don't have any worries about that - or about the costs/sums involved (> 70% retention).

My question surrounds what to do with my Ltd company - I still need to somehow feed some money into it (to pay accountant & corp tax, plus i have a company vehicle still with 2 years left on the lease). I don't want to close it down but might not use it for over a year. The money I get through my payroller will already be taxed.

Please don't advise "Tell the agent to get stuffed unless they let you work through your Ltd company" as thats not really the advice I'm looking for.

Thanks in advance.


So

Hi I also had the possiblity of working in Belgium using Tentoo. I did not take the job, because of the high tax you have to pay in Belgium.

20 days , 520 a day = 10400
After tax, etc, you nett income will be 3700 !!!!!

rgds,
Justme