remote contract, client in UK, no Ltd, what to do

[darrenb]

I'm living abroad, but looking at a promising contract working remotely for a company in the UK.

There is an agency in the middle that will be paying me, just a typical medium-to-large UK recruiting agency.

• how likely is it that the agency will pay into a bank account (either UK or European) without a Limited Company?
• if not, what are my other options for getting paid?

Thanks!

- d

[Bellona]

IMO I think it is more a question of whether they will enter a contract with you if you are not LTD or through an umbrella.

Were you intending to contract with them as a sole trader ??

[DirtyDog]

• how likely is it that the agency will pay into a bank account (either UK or European) without a Limited Company?

Anorexic. They won't deal with you without a limited company of some kind in the middle.

• if not, what are my other options for getting paid?

Ltd or umbrella

[darrenb]

Anorexic. They won't deal with you without a limited company of some kind in the middle.

Ltd or umbrella

Problem is, then I have to pay taxes in the UK, and the tax authorities where I'm living (Germany) are going to kick up a fuss and say I'm supposed to pay taxes where I'm resident.

Anybody with experience working remotely from abroad?

[GazCol]

I'm living abroad, but looking at a promising contract working remotely for a company in the UK.

There is an agency in the middle that will be paying me, just a typical medium-to-large UK recruiting agency.

• how likely is it that the agency will pay into a bank account (either UK or European) without a Limited Company?
• if not, what are my other options for getting paid?

Thanks!

- d

The length of the contract would determine what you need to do, engage a German accountant and they'll advise whether you should go Ltd or KmbH. As you're engaging an agency, there's very little chance they'll entertain you as a sole trader.

[TheCyclingProgrammer]

As above you should speak to a German accountant but I don't see why you couldn't possibly engage with the UK agent through your own German company (or a German umbrella setup which I'm sure must exist).

There might be some tricky VAT issues to work out (place of supply rules and all that) although if you're not VAT registered that's for the agency to deal with.

[doodab]

Problem is, then I have to pay taxes in the UK, and the tax authorities where I'm living (Germany) are going to kick up a fuss and say I'm supposed to pay taxes where I'm resident.

Anybody with experience working remotely from abroad?

I've worked for a UK agency while in Germany, as a freiberufler (i.e. independent freelancer, no Ltd or GmbH), albeit with a German client. It was pretty simple, you just invoice, no VAT as it's reverse charged, and do your German accounts at the end of the year.

The alternatives i.e. working via a UK Ltd or a GmbH will potentially get quite complex as the company whether UK or German will most likely be liable for German payroll taxes & corporation tax / trade tax. It's also not going to be very tax efficient. GmbH also has onerous capital requirements (you used to need something like €25,000 initial capital to start the company). It's unusual for a German contractor to use a GmbH although some do.

You need to try and explain to them that a UK LTD really isn't a suitable vehicle for a German resident IMO.

[darrenb]

As above you should speak to a German accountant but I don't see why you couldn't possibly engage with the UK agent through your own German company (or a German umbrella setup which I'm sure must exist).

It could work. Anybody know any good German umbrellas? That don't charge an arm and a leg, and pass on the funds quickly?

[doodab]

It could work. Anybody know any good German umbrellas? That don't charge an arm and a leg, and pass on the funds quickly?

I don't I'm afraid. I'm not even sure they exist in the sense we think of them as it's so easy (and accepted) to set up as a freelancer that there is no real need for them. Not to mention that as a freelance you can be exempt from certain social security contributions.

[darrenb]

I've worked for a UK agency while in Germany, as a freiberufler (i.e. independent freelancer, no Ltd or GmbH), albeit with a German client. It was pretty simple, you just invoice, no VAT as it's reverse charged, and do your German accounts at the end of the year.

That's just what I wanted to hear. But it could be that the agency (yours) understood the situation better because they were used to dealing with German clients.

What I need is a backup plan, in case the agency (mine) refuse to understand this set-up, as everybody else thinks they might.