UK LTD in Germany

[markotsg]

No you don't run through your Ltd, declare everything as personal income, pay German tax and VAT (unless you're under a threshold), and then declare that to the UK who then charge any extra. You need a German accountant, or some UK accountants might work with German accountants. You can ask SJD, they seem to be familiar with international working.
.

Many thanks So in this case LTD wouldnt invoice the UK Client anymore? would I need to have new contract signed direclty with this client rather then LTD? I guess LTD would be without any income in that case?

[markotsg]

sorry in terms of corporation tax paid, if uk LTD company is operating (director based and works from home in Germany ) in Germany over 6 months, I beleive this company will have to pay corporation & Trading tax in Germany as well?
Would it endup paying coporation tax both in Uk and Germany or there is a relief in place ?

[BlasterBates]

Many thanks So in this case LTD wouldnt invoice the UK Client anymore? would I need to have new contract signed direclty with this client rather then LTD? I guess LTD would be without any income in that case?

...ah yes UK client

I would take advice from a German accountant on this one, on how to handle VAT.

Yes you could just simply sign the contract to you personally.

perhaps you could take advice from an accountant such as SJD that specialise in contractors and seem to have knowledge of contractors overseas and might help you out on this contract.

[darmstadt]

Many thanks all,
if the UK LTD company operates longer then 6 months, Mehrwertsteuer )corporation tax, trade tax,etc need to be paid in Germany.
As my client (I send invoices to UK agency in UK) is based in UK I would still be charging VAT on my invoices? or that would stop as soon as I submit P85?
Would I charge Mehrwertsteuer instead on Invoices?

Just for information you don't put MwSt (Mehrwehrsteuer) on your invoices in Germany but Umsatzsteuer (USt) and you need to put this number on your invoice.

Umsatzsteuer is a literally tax on commercial turnover, whereas Mehrwertsteuer is a tax on increased value. Both are essentially correct terms, and as such interchangeable. The difference is that a commercial trader, while paying the full tax on his (German traded) turnover (so really Umsatzsteuer), can actually reclaim the tax already paid (Vorsteuer) on materials he has purchased. The end effect is that the net result is a tax on increased value (Mehrwertsteuer). Only the end consumer (who can't reclaim Vorsteuer) pays the full amount.

[doodab]

Many thanks all,
if the UK LTD company operates longer then 6 months, Mehrwertsteuer )corporation tax, trade tax,etc need to be paid in Germany.
As my client (I send invoices to UK agency in UK) is based in UK I would still be charging VAT on my invoices? or that would stop as soon as I submit P85?
Would I charge Mehrwertsteuer instead on Invoices?

VAT depends on the place of supply rules. You would either be charging UK VAT or (more likely I think but you'd need to check it) charging 0% and your customer has to cross charge.

P85 is to do with your personal tax situation, nothing to do with your company at all.

[markotsg]

thanks all
Would corporation tax paid in one country be credited in another?

If I pay coporation tax in UK but not in Germany, if I do have to pay in Germany will they substract the UK coporation tax?

If it comes to that as company may be longer term over 6-12 months in Germany (director will be based there) and my only client is based in UK and I charge VAT, would I be paying Corporation Tax in both countries and claiming relief on another?

[BlasterBates]

If you want to do it via your Ltd, you set up a branch in Germany. It will have it's own set of accounts.

You should talk it through with an accountant. try SJD.


http://www.sjdaccountancy.com/about/ourservices/contracting_germany.html

There is no simple answer to working cross border, and you need professional advice.