- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Using an EU "billing company" to invoice my client and then pay to my offshore LTD"
Collapse
-
Generally, you are liable for tax for any income earned in any country. For example if you own a flat in Croatia and you get rent, you are liable for tax in Croatia, even if you've never been there.
-
Originally posted by Brussels Slumdog View PostYou pay tax where the work is done unless it's less than 180 days and other criterias are met.
Leave a comment:
-
Originally posted by NotAllThere View Post1. You are due to pay tax where the work is done.
2. Being not tax resident does not mean you have no tax liability
3. Agencies don't care how you arrange your matters and if you get prosecuted for tax evasion, so long as they get paid.
4. Everyone is tax resident somewhere. Some people have multiple tax residencies. No-one is tax resident nowhere.
5. Your understanding is lacking.
If you are not a tax resident anywhere then no double taxation agreement will relevant to you.
To avoid paying tax in the host country you need to prove that it's payable in your home country
Sent from my SM-A320FL using Contractor UK Forum mobile app
Leave a comment:
-
Originally posted by bul View PostAnd BTW my understanding also was that you are not tax resident if you don´t live/work in the country for more than 6 months, that is why many agencies let you use your UK LTD instead of paying local taxes.
2. Being not tax resident does not mean you have no tax liability
3. Agencies don't care how you arrange your matters and if you get prosecuted for tax evasion, so long as they get paid.
4. Everyone is tax resident somewhere. Some people have multiple tax residencies. No-one is tax resident nowhere.
5. Your understanding is lacking.
Leave a comment:
-
Originally posted by bul View PostMy experience is that most don´t care if the contract is outside UK.
And BTW my understanding also was that you are not tax resident if you don´t live/work in the country
for more than 6 months, that is why many agencies let you use your UK LTD instead of paying local taxes.
Leave a comment:
-
Originally posted by SimonMac View PostThe dodgy tax implications are the least of the problems, you will find zero agencies who will work this way so it's a non starter, if you go down the ltd route they will insist on a UK company for which you are the majority share holder
And BTW my understanding also was that you are not tax resident if you don´t live/work in the country
for more than 6 months, that is why many agencies let you use your UK LTD instead of paying local taxes.
Leave a comment:
-
The dodgy tax implications are the least of the problems, you will find zero agencies who will work this way so it's a non starter, if you go down the ltd route they will insist on a UK company for which you are the majority share holder
Leave a comment:
-
Originally posted by Old Greg View PostKrugerrands.
Leave a comment:
-
Originally posted by northernladuk View PostJust get them to pay you with a cheque and nip down the local cash converters. Sorted.
Oh.. The CUK text editor has gone all Millennial on me. It does't know what cheque is and is trying to auto-correct it to quench. That's lit AF!
Leave a comment:
-
Leave a comment:
-
Originally posted by northernladuk View PostOh.. The CUK text editor has gone all Millennial on me. It does't know what cheque is and is trying to auto-correct it to quench. That's lit AF!
Leave a comment:
-
Just get them to pay you with a cheque and nip down the local cash converters. Sorted.
Oh.. The CUK text editor has gone all Millennial on me. It does't know what cheque is and is trying to auto-correct it to quench. That's lit AF!
Leave a comment:
-
Where you work is where you pay tax. No-one is tax-resident nowhere.
Leave a comment:
-
Originally posted by bul View PostYeah, I know it sounds dodgy, but my situation is, not always, that I am not resident in any counntry, because my contracts length is 3 or 6 months.
The problem is that clients/agencies FEAR to pay OFFSHORE LTD´s, I know that there are companys out there that will invoice you client for a fee and then pay to any OFFSHORE LTD.
What doo you think about this? is it legal providing I am not resident in any country?
Does anyone knows such billing companies? names? websites?
- where do you pay tax?
- where does your company pay tax?
- is factoring legal?
For you personally, as others have said, residency may not be a factor depending on what country it is. For the U.K., for example, even if you are a non-resident you pay tax on what you earn here:
Tax on foreign income: UK residence and tax - GOV.UK
Same for a non-resident company:
Using an Offshore Company | Offshore Formations 24.7
You’ll need to engage an accountant in the client country to determine if the rules are similar there.
Factoring is generally where a company will buy your debts/invoices from you, but you’re still the one that needs to issue the invoice to the client. For another “billing company” to issue the invoice they would need to have the contract with the client.
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: