Reply to: Working remotely for a UK client from an EU country

[WTFH]

Yes, with approval. But, trying to do this surreptitiously for a company where data cannot cross borders is not a smart move.

If it's Med/Pharma, Military, Nuclear or Oil, "Not a smart move" is an understatement. Also, depending on the country you might be in, a few other industries would join the list.

[Paralytic]

Most major companies I know have plenty of outsourced staff accessing their systems from Asia and Eastern Europe. I doubt it will be a major hurdle to getting work. An ex colleague of mine is working remotely in Germany for a UK company.

Yes, with approval. But, trying to do this surreptitiously for a company where data cannot cross borders is not a smart move.

[BlasterBates]

And any decent sized client will be able to tell if you're working from outside the UK, even if you use a UK-based proxy/VPN. If caught doing this, after confirming you were working within the UK, it could be a lot more serious for that you'd perhaps think.

Most major companies I know have plenty of outsourced staff accessing their systems from Asia and Eastern Europe. I doubt it will be a major hurdle to getting work. An ex colleague of mine is working remotely in Germany for a UK company.

[Paralytic]

2) your clients (and any agencies providing you with work) know where you are working from for data protection purposes.

The latter is where you will struggle I suspect

And any decent sized client will be able to tell if you're working from outside the UK, even if you use a UK-based proxy/VPN. If caught doing this, after confirming you were working within the UK, it could be a lot more serious for that you'd perhaps think.

[eek]

Hi Guys,

I'm new to the contracting world and could relate to this thread.

I wanted to know if I intend to work for a UK client through my UK ltd company -- however work remotely from an EU country:

1) Would it be possible for me to invoice the UK client using my UK ltd company AND then invoicing my UK ltd company from my EU ltd company?

Basically I have run into a lot of clients who don't want to be invoiced from an EU country/outside UK - so I wanted to get some sort of workaround if possible.

Kind regards

I'm aware of companies that work that way and there is absolutely nothing wrong with it provided

1) your UK company has appropriate UK based insurance
2) your clients (and any agencies providing you with work) know where you are working from for data protection purposes.

The latter is where you will struggle I suspect

[cojak]

What, you mean how to lie to clients?

[starling07]

Hi Guys,

I'm new to the contracting world and could relate to this thread.

I wanted to know if I intend to work for a UK client through my UK ltd company -- however work remotely from an EU country:

1) Would it be possible for me to invoice the UK client using my UK ltd company AND then invoicing my UK ltd company from my EU ltd company?

Basically I have run into a lot of clients who don't want to be invoiced from an EU country/outside UK - so I wanted to get some sort of workaround if possible.

Kind regards

[lecyclist]

Do you know that guy in your project who is smart, and could learn to do anything, if he wasn't so lazy that he expected relative strangers to make his life easier? Even when you give him advice, he doesn't take it.

Don't be that guy.

DYOR. Read online international country tax check sheets published by the large accountancy firms. Once you are familiar with the tax fundamentals, speak to an accountant in each territory you are thinking of operating in and ask targeted questions concerning your personal circumstances.

Voilà, you now know more than 90% of posters on CUK.

[BillHicksRIP]

<Removed>

[eek]

I am in a similar situation to the OP and was wondering if anyone had recommendations for a professional tax advisor? Many posters have suggested speaking to a professional, but I could not see any recommendations so far. Thanks.

I would have thought the continual references to Sue at IPAYE would have been a clue.

Given that you are dealing with multinational tax law there aren't many people who specialise in such things.

[expatworker]

I am in a similar situation to the OP and was wondering if anyone had recommendations for a professional tax advisor? Many posters have suggested speaking to a professional, but I could not see any recommendations so far. Thanks.

[lecyclist]

I agree with BB concerning a multiple company setup. There are many advantages related to conducting business through companies in multiple tax jurisdictions. The simplest one concerns corporation tax years. European countries normally align corporation tax with calendar years (Jan-Dec) while UK corporation tax is on a variable calendar (Director chooses the company tax year).

There are opportunities to front-end (advance payment on services) or back-end (payment for services rendered) transfer pricing between connected or unconnected companies to delay the point of taxation. The idea of postponing taxation until the point of profit distribution is what has made Estonia and e-residency particularly attractive for example (as you would imagine, it's not that simple).

I would emphasise though how important it is to seek professional advice before you commit to a particular tax setup. I've spent years working all over mainland Europe (since 1996), and I would still seek tax advice before beginning a new venture in a jurisdiction I was unfamiliar with, as tax legislation changes constantly. You will be unlikely to get the appropriate advice for free on the internet, and especially not in an UK based forum. Or worse, you will make decisions based on advice that has not aged well.

[BlasterBates]

Yes, it's likely that the agency won't deal directly with a foreign company. So that would imply keeping my UK LTD? Would that be even possible if I want to get the non-resident status and pay my taxes in the EU country that I will be moving to? I don't remember where, but someone said that one of the things I need to do is close my UK LTD.

In this case you would bill the UK Ltd from your foreign company.

Before Brexit you could have set up two branches of your UK Ltd one in the UK and one in the country where you were resident, but that probably won't be possible.

You need to contact Sue at IPAYE, this will be very difficult to figure out by asking questions here.


https://www.contractoruk.com/forums/...ief-guide.html

[skysies]

I mean if the agency were to refuse to allow you to bill from a foreign company, but that makes it complicated. In that case you would bill via the UK ltd, and then bill the UK Ltd from your foreign company. In effect you would have very little or no profit in the UK company.

Yes, it's likely that the agency won't deal directly with a foreign company. So that would imply keeping my UK LTD? Would that be even possible if I want to get the non-resident status and pay my taxes in the EU country that I will be moving to? I don't remember where, but someone said that one of the things I need to do is close my UK LTD.

[BlasterBates]

Yes, that makes sense. When you say "It might be necessary to run the contract through two companies, one in the UK and one in your country of residence."

Do you mean the UK company is the agency?

I mean if the agency were to refuse to allow you to bill from a foreign company, but that makes it complicated. In that case you would bill via the UK ltd, and then bill the UK Ltd from your foreign company. In effect you would have very little or no profit in the UK company.