Payments through Ldt company when contracting abroad

[Crossroads]

Any recommendations on which umbrella / payroll provider to use? Had a few potential gigs come up for the Netherlands, so forewarned would be forearmed...

[Brussels Slumdog]

Well, I am between contracts at my home country (not the UK) and potential contract is in Holland for 4 month.

So I will not be tax resident there.

You can only use a Dutch local company to invoice a Dutch company and you need compulsory private insurance .They have copied the Swiss. I would be very surprised if any agency would allow you to invoice using your EU Ltd company. Using the 30% rule you will most likely pay less tax than using your own LTD company anyway.

[mrv]

enteruk, go find out when and how one becomes tax resident in Holland. Find out if your country has any double taxation avoidance agreement with Holland, read it and see what it says. Then, you will (hopefully) know what and when will happen, how many days until tax resident, what kind of income is taxed etc. I can only say the rumour has it dutch tax officials come right after german in terms of efficiency and persistency

[northernladuk]

Sorry, which place is better?

Mumsnet.

[NotAllThere]

Sorry, which place is better?

This one.

[TheFaQQer]

Sorry, which place is better?

Accounting/Legal

Posting in a forum that is labelled "All hope abandon ye who enter here. Seriously." is asking for trouble.

[scooterscot]

So I will not be tax resident there.

That's not your decision. The country you're working in decides whether or not you're liable.

[enteruk]

The first question you should ask.

1) Which country am I spending more time in?

Well, I am between contracts at my home country (not the UK) and potential contract is in Holland for 4 month.

So I will not be tax resident there.

[enteruk]

Wrong place to post this thread.

Sorry, which place is better?

[scooterscot]

The first question you should ask.

1) Which country am I spending more time in?

[SueEllen]

Wrong place to post this thread.


In general you pay tax and any social taxes in the country you work in.

Some countries this has to be from day 1 while other countries give you some leeway if your contract is anything from 10-182 days.

Also some countries don't recognise the UK small limited country structure.

To sum up you need to find out each countries rules on tax and social taxes when you are thinking of accepting the contract. Lots of countries do put their tax regulations for foreigners in English.

[enteruk]

Hi All,

Is it allowed to work for a contract in different EU country(not the UK) and receive remuneration through contractor's own Ltd company, registered in the UK? And pay corporation tax in the UK?

I always believed that - yes.

But one recruiter has told me that there is some regulation that requires to pay tax in the same country where the contractor work and offers kind of umbrella company service with eventual deductions of 48%.

I am surprised....

Or is it just an attempt to sell their service?

Regards,