According to many people here, whenever there is a contract to be had outside of UK, one should set up as a local business entity, or work through a local umbrella.
I think it's all FUD, but I'd like to be proven either way.
Currently not being a lawyer, I think that there are free trade agreements between EU countries that must allow EU businesses to exchange goods and services easily, I do not see why would that not extend to Contractor Ltds as well?
To get an example: I recently bought some software from an Austrian company , I paid them, but really it's more of a support and maintenance package as the software itself is open source, so really I am paying them for the service, consultancy so to speak.
Is that any different from a contractor, except usually, contractors go one step further by making themselves available on-site, but that's hardly a differentiator as support for software can also be on-site, likewise some contractors work remotely or part time.
In conclusion, I see no point in advising all the poor chaps to set themselves with intermediaries in those foreign countries, unless:
a) it's more attractive to them tax-wise
b) they are moving there for a long period of time
c) they really are not contractors but disguised permies
Am I right?
I think it's all FUD, but I'd like to be proven either way.
Currently not being a lawyer, I think that there are free trade agreements between EU countries that must allow EU businesses to exchange goods and services easily, I do not see why would that not extend to Contractor Ltds as well?
To get an example: I recently bought some software from an Austrian company , I paid them, but really it's more of a support and maintenance package as the software itself is open source, so really I am paying them for the service, consultancy so to speak.
Is that any different from a contractor, except usually, contractors go one step further by making themselves available on-site, but that's hardly a differentiator as support for software can also be on-site, likewise some contractors work remotely or part time.
In conclusion, I see no point in advising all the poor chaps to set themselves with intermediaries in those foreign countries, unless:
a) it's more attractive to them tax-wise
b) they are moving there for a long period of time
c) they really are not contractors but disguised permies
Am I right?
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