Better ways to keep the cash - Europe question

[Olly]

You're almost there.
I'm actually in the boat you describe now.
No VAT
No salary now actually - I'll pay it next calendar year (German has a calendar tax year) as almost certainly won't be here past March.
Will take the dividend next April too (only up to the 40K ish limit though)

One big "gotcha", although unlikely to ever be an issue, is that if control of the company is exerted from a diff country then company becomes liable for tax in that country!

[themistry]

AIUI, the company must pay tax on the profit generated in the country.

I wasn't aware of this point. Hmm, makes sense I suppose.

I may have to give them a call to see what they say.

TM

[NotAllThere]

AIUI, the company must pay tax on the profit generated in the country.

Unless your accountant has an international accountacy and tax practice, they'll be unlikely to be able to help you with local tax issues.

[themistry]

Hi all,

a general question about working in Europe. Thoughts appreciated.

Assuming I can bill via my Ltd company and will be in the country for over 183 days in the year could I...

1) Bill as normal via the LTD without VAT.
2) Pay myself as an employee a low salary as per normal but ensure the local tax is paid, and not UK tax. Also, put through expenses for travel and accomodation.
3) When I return to the UK, take a big dividend and only pay uk tax on the dividend?

The reason I ask is... for point 2, i'd need advice on how to pay the local tax, is this something my accountants could help with? I'm presuming travel and accomodation an be covered by my LTD considering i'm in a different country.

Thanks all
TM