Belgium

[Hiram King Of Tyre]

Thanks, useful stuff

[kiboomiz]

I'm currently working in Belgium, and I've found it fairly easy to deal with (even though it's my first contract!). I'm working via Modis International and they took me through what I needed to sort out before I started (Limosa, etc).

I'm operating through my own Ltd company, and I raise my invoices in Euros and add 17.5% VAT as normal. I opened a Euro account with Cater Allen alongside my Sterling account, so it gets paid into that. I can then transfer the money when the exchange rate's favourable...

As I'm only here for a short term (only 8 weeks initally, but a short extension has been mentioned), I've been advised that I'm not affected by Belgian tax.

As far as expenses go, I' flying back to the UK every weekend, and I'm claiming for all travel/accommodation/etc as I would if I was working away during the week in the UK. I've just about made enough frequent flier miles with Brussels Airlines for a free return European flight now!

[Hiram King Of Tyre]

Thanks Joe,

It's looking like it would be best to at least start with the Ltd which will give me 6 months to evaluate.

Let's not get carried away though, I haven't even been interviewed yet....

What happems about VAT though?

[ElectricChair]

fffffffffnnnnnnnnnnnnaaaaaarrrrrrrrrrrrrrr

[Joe Black]

As Rantor mentioned a lot depends on how long you're going to be working for. If it's only 3 months/6 months then as far as I'm concerned it certainly shouldn't be any different than working in the UK and that would be the line I'd take with any agency suggesting otherwise.

Regarding the CUK guide* (provided by ITECS), though providing an overview of sorts, it doesn't provide an accurate description of how things are, e.g. the 2003 ECJ ruling stating businesses set up in one EU member state have to be recognised in others - result Belgians setting up Ltds instead of SPRLs/BVBAs, or that - in another (apbuh) hopefully soon to be declared illegal practice, the option suggested of registering as self-employed/a business in Belgium requires a qualification, but no UK qualification is automatically recognised.

Depending on your sense of a "safety zone", for a short contract working as is would mean nothing changes except the location. If you're more comfortable with the advice from the agency, then management companies can probably provide a decent income as well, though at some cost.


* note to CUK, can you update these. Also with regard to Limosa and such like. Surely a potential one year jail sentence for someone without a Limosa cert is something that should be mentioned!

[Hiram King Of Tyre]

The overseas section seems to say that the 183 day rule applies unless I'm the only employee. Isn't that right?

The main issue I have in the UK is that I hate the idea of paying 40% tax so therefore pay a lot into a pension (also I will be 50 before the age goes up and will therefore be able to draw 25% tax free).

How does it compare in Belgium? Is there a higher tax rate? Can I still pay into a UK pension tax free?

[Bagpuss]

You can remain in the UK tax system if the placement is no longer than 6 months. However the agency will try to push you down the management company route:

A/ they get a kick back from the MC
B/ they want you to renew
C/ they can be sure you paid your tax

[Hiram King Of Tyre]

I haven't looked at any yet. I was asked about the gig a month or so back and said that I wasn't free till Christmas. That wasn't suitable. They've now come back and said that they haven't found another candidate with a CV comparable to mine.

There is a 3 month extension on the table here if I accept though.

I'm just preliminary checking at this stage. The daily rate is about the same.

Will I be able to claim travel back to the UK at weekends against tax like you can in the UK?

[Rantor]

I've read the overseas guide but has anybody any experience? I live in Kent so can get to Brussels just as quick as the M4 corridoor.

The agency says "just go through a management co and retention is about 80%". Is that true? Is there an option to trade through my UK Ltd (The overseas guide seems to suggest this is possible)

It depends on how long you will be working in Belgium and whether you can easily comply with the recent (probaly illegal under eu law but who's counting) Limosa regs introduced over here.

UK ltd used to be OK up to 6 mths but longer in practice. To do this now you would need to be LIMOSA registered. An agency should be able sort that out for you as they can get fined if it ain't in place (bit like NL in that respect.)

Management co is a good option but will usually involve registering as self-employed over here and that can be bureaucratic hell. As for the retention, it depends how you structure things . What mgmt companies are you looking at?

[Hiram King Of Tyre]

I've read the overseas guide but has anybody any experience? I live in Kent so can get to Brussels just as quick as the M4 corridoor.

The agency says "just go through a management co and retention is about 80%". Is that true? Is there an option to trade through my UK Ltd (The overseas guide seems to suggest this is possible)