Originally posted by Boo
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Previously on "Is it best i use my UK Ltd co to work in Belguim"
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Originally posted by selinadelvecchio View PostActually i would be going via the EuroTunnel and thought like a UK standard job that i would claim it back as mileage allowance
Originally posted by selinadelvecchio View Post(though i doubt if i could get away with claiming the Tunnel as an expense)
Boo
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Originally posted by SueEllen View PostIf you have another director who is UK based and in charge of strategic decisions then your company will be based in the UK,
Originally posted by SueEllen View Postyou can then ask your employer if they will reimburse some of your flights back to the UK to see your family.
Originally posted by SueEllen View PostOh and make sure you don't use the same B&B through out the contract.
Boo
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Originally posted by selinadelvecchio View PostShould i be honest and pay some Belgium taxes
The advantage of staying in a B&B is that you do not have a potential business address in Belgium and the BTA cannot sugest your centre of economic activity has moved to B. from day one. And it saves registering at the local commune.
You will most likely be forced to register with Limosa by the client / agency (unlikely to be the agency who asks, since they are a UK firm). You should avoid registering if possible because 1: it's not you who is fined for not complying and 2: not registering will save being sent a B. tax return, which in turn will save you paying a B. accountant for filling it in for you.
If you are going to stay more than 183 days then all bets are off though and you'd better see a B. accountant right away.
Hth,
Boo
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Originally posted by selinadelvecchio View PostActually i would be going via the EuroTunnel and thought like a UK standard job that i would claim it back as mileage allowance as i'm going from my work address (Brussels) to my home address on a Friday and coming back on the Sunday (though i doubt if i could get away with claiming the Tunnel as an expense).That is what i would normally do in the UK if i was staying away from home during the week and then claiming the mileage back.
It depends on your employer what accommodation and travel costs including parking, bridge/tunnel tolls they will reimburse you for.
Download booklets 490 and 480 from HMRC (google for the links) on expenses to see what your employer will allow you to claim.
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Originally posted by manclarky View PostWhy shouldn't you use the same B&B...?
Also, whilst I'm sat here thinking after reading this, why can't you bill your flights back to UK to your company?
Surely, the costs of getting to ClientCo and back are chargeable??
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Originally posted by SueEllen View PostIf you have another director who is UK based and in charge of strategic decisions then your company will be based in the UK, you can then ask your employer if they will reimburse some of your flights back to the UK to see your family.
Oh and make sure you don't use the same B&B through out the contract.
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Originally posted by SueEllen View PostOh and make sure you don't use the same B&B through out the contract.
Also, whilst I'm sat here thinking after reading this, why can't you bill your flights back to UK to your company?
Surely, the costs of getting to ClientCo and back are chargeable??
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If you have another director who is UK based and in charge of strategic decisions then your company will be based in the UK, you can then ask your employer if they will reimburse some of your flights back to the UK to see your family.
Oh and make sure you don't use the same B&B through out the contract.
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Thanks for your reply very informative.
I think i will take the risk and just keep below the radar, carry on paying UK taxes thru the Ltd company and not pay the Belgium's nothing .........less complicated on a short-term contract.
Hopefully i can claim back B&B expenses too!
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If you did tax yourself in Belgium you won't be paying any tax in the UK, it's one or t'other.
One thing you can be certain is, if you pay tax in Belgium you will be above board and won't have to worry about whether you comply.
If your contract is short then you probably only pay Belgian tax, not "Sozialversicherung" (it should be possible to avoid this when you're not tax resident), you won't be taxable on all your income because you won't be resident.
If you tax yourself in Belgium then if you were to use your Ltd, which you can, you would setup a branch and register it there, and this branch would have it's own set of accounts and would not be taxed in the UK.
However I would take advice from a Belgian accountant as to how to do business in Belgium. It would probably be easiest to use a reputable (and I stress reputable) umbrella co., if they are efficient at doing these short term contracts.
You could just hide under the radar and hope it's legal or if it isn't that the Belgian authorities don't catch you. I don't know whether it is or not, but I suspect it's "grey" and they could decide to tax you if they really wanted. If I were to do even a short contract in Belgium I would tax myself there, that's what I'm used to doing when I go to another country; that way I know I'm compliant. I find when you're there short term often it's tax efficient anyway (assuming you actually did have a choice), simply because you often benefit from lower tax rates, and they can't touch it again in the UK.
Best to at least take some professional advice. It's cheaper than having no advice and relying on contractors advice, many of whom have fallen foul of tax authorities in various countries.
The other thing to bear in mind is, if you try to tax yourself in Belgium and the tax isn't actually due they would inform you. For example I paid NI in the UK and I wasn't resident, they asked me whether I wanted it refunded, however if I had have done I would have had to pay even more of it in Luxembourg, so I declined.If the Belgians decline to tax you (unlikely but not impossible) then it gets taxed in the UK.
When I started working in Switzerland the German authorities tried to refund my interest and dividend tax payments, it took a bit of correspondence to convince them that I was actually tax resident.Last edited by BlasterBates; 3 November 2010, 16:28.
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Is it best i use my UK Ltd co to work in Belguim
Hello Guys,
Nordric's thread is legendary - so i have read it all but had a few questions.
I'm about to start a 6mth contract in Belgium on £450/day and would like to use my UK Ltd as i have obviously used it to work quite easily contracting solely in the UK.
I was thinking of using a B&B over there and doing the standard thing of invoicing the UK agency then having it paid into a UK Business Bank acct, then working with SJD Accountancy to draw a small salary and then top up with dividends etc.
Should i be honest and pay some Belgium taxes or does it get complicated if i'm paying my full whack UK Ltd company - income tax and NI contributions. Or would it be better to register in Belgium and be above the radar and pay some contributions.
I'm trying to operate as tax efficiently as possible without having to get drawn into paying all the Belgian taxes. I realise on a 6mth contract i could keep quiet not register and just operate as if i was working in the UK.
Another question - can i claim my accomodation back mileage allowance whilst working in Belgium. I realise that i can't claim anything for coming back to the UK at weekends etc.
Any assistance would be greatly appreciated as i know roughly what i can earn on this daily rate in the UK but it gets complicated once i decide to contract in another country with the legal obligation to pay local taxes.
Cheers
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