Recommended management companies in Germany..

[DaveB]

Well this one came back from the dead over a year later. Anyone know what the record is for inadvertantly ressurecting dead threads?

[darmstadt]

Management companies are pretty much a no-no in Germany, the Finanzamt really don't like them.

You send a letter to the Finanzamt saying you´re working as a freelancer, bill the company who pay direct to you, fill in a VAT form every month and fill in a tax return at the end of the year. A Steuerberater (German Accountant) will do all this for you of course.

When I started I didn't even have to do that, as long as I had my tax number, which you get once you start paying any tax, that will suffice. My VAT is done on a 3 month basis in advance and tax is done once a year but you pay in arrears. Your tax advisor will work out how much you are going to earn and spend next year from your previous years earnings and your taxation is worked out on that. Keep every single receipt and keep them for 10 years as well. I've known the Finanzamt to come to peoples houses and take every piece of paperwork away, freeze their bank accounts and they as much, if not more, power than the police.

The most important thing to do in Germany: get a Steuerberater. As a permie you can quite easily do your own, as a freelancer its practically impossible.

[dutch]

Lets hope ITECS goes out of business soon!

Keep away from ITECS. They are absolutely appalling.

They charge 350 euros per month and the quality of the service is disgusting.

Really. Can not stress. Keep away from ITECS.

Re: I see

oh yes - this one could run and run...

ta Blaster - will do....

(already have the private health insurance organised from Switzerland, just have to change the country of residence...)

I see

'Tis the duration. In my case it tends to be mainly UK based and only odd trips to Germany for a week here and there.

Re: Why?

Working through your Ltd for any longer than 6 months in Germany is a no no, because after that time you would have to register it, and that is complicated and inefficient taxwise, as you´re liable for Gewerbesteuer (industrial tax).

I presume the reason they´re a bit sensitive is that if your management company screws up (eg VAT), they could also get screwed, as the client also carries liability. There have been problems in the past of employers of English employees coughing up huge sums of back tax.

So I think you would be best accepting it. The benefit is as a UK employee is you can stay on the NHS through E101, though this is significantly more expensive than German private health insurance.

The most efficient way to operate in Germany is as a freelancer with no form of Ltd, and get some private health insurance. To work as a freelancer is quite simple. You send a letter to the Finanzamt saying you´re working as a freelancer, bill the company who pay direct to you, fill in a VAT form every month and fill in a tax return at the end of the year. A Steuerberater (German Accountant) will do all this for you of course.

Why?

Any idea why they are reluctant to contract your UK Ltd. I've never had any problems with my German clients.

Thanks for the info tim.

I still don't have the answer, but at least I know what question to ask on Monday...

Sorry Cojak, that doesn't answer the question I'm afraid.

If the client requires the Management Co to hold a Labour leasing license then you have less choice than if they don't. But even if they don't require the license you will still find it advantageous to work through a brolly, but you will be set up as a self employed person.

If you need a license the choice that I know of is JSA or ITECS. But if you don't need the license then someone like Albany systems is probably a better choice.

tim

They want me to work under a brolly type arrangement, I think (haven't seen the contract yet). I definitely know they're not interested in working with my Ltd Co.

can you be self employed or does the job require you to work through a leasing license.

It makes a big difference

tim

Any ideas, chaps?

TIA

:hat