Guide to Contracting in Norway (through your UK Ltd Company)

[jlo1983]

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[jlo1983]

Accountant

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[captainham]

People work abroad for multiple reasons and money is not necessarily the primary one.

I'm not saying it is, but you need at least some idea of how much take-home you can expect.

[SueEllen]

If you don't know the actual taxation figures, then how do you know if the rate you are on is actually worthwhile (versus contracting elsewhere) ?

People work abroad for multiple reasons and money is not necessarily the primary one.

[simac]

Thank you for the great advice jlo1983.

I'm looking at doing some consultancy work in Norway shortly.
I noticed you mentioned Stavanger, could you recommend a local accountancy firm there to help me with the registration issues ?

Many thanks

[captainham]

Hi - please see the following link:

http://www.skatteetaten.no/Upload/ta...sskatt-ENG.pdf

Although I have only received payment of my first invoice for my contract in Norway, therefore I do not fully know tax amounts, I have been advised by my accountant to take 40% of my invoice as salary (as a general rule of thumb). Plus, also pay myself my expenses back. At the of the tax year (end Dec) I can then pay myself the rest of the money in the business (but I guess this will be subject to tax also).

If you don't know the actual taxation figures, then how do you know if the rate you are on is actually worthwhile (versus contracting elsewhere) ?

[jlo1983]

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[toptim21]

Tax to be paid

Does anyone have a good idea on how the tax breakdown is in Norway?

I understand that UK National Insurance rates are almost the same as Norway for both employee and employer contributions. The gain to be had in nominating to pay UK rates over Norwegian rates is that the UK has a ceiling for employee contributions. Once you have paid up to that ceiling, you will not pay any more employee contributions, only employer contributions. Thus the benefit of the A1 form.

I was told by my accountant in Norway that you are restricted in the amount of money that you are able to return to your UK company (max 25%) and that you are forced to pay yourself as salary 75% of your Norwegian company's income as personal income, and pay full tax on it (including employers national insurance on the full amount) Does anyone know if this is correct? It seems absurd that they can dictate this to a company!

This means that you pay full income tax and employee NI contributions on 75% of your day rate (after legitimate expense deductions - commuting, accommodation etc), then return the other 25% to the UK to be subject to UK corporation tax. Can anyone confirm if this is correct?

[jlo1983]

Update: Portable A1 Form (NI exemption)

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[jlo1983]

Valid Tax deductions

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[stek]

Gr8 post and demonstrates how to go about working overseas.

i.e. go engage a local accountant and register and if necessary a UK accountant if you remain resident in the UK.

This is a general template for working overseas.

Agreed - A1 post, nice to see a first post which informs rather than begs for information and disappears....

[BlasterBates]

Gr8 post and demonstrates how to go about working overseas.

i.e. go engage a local accountant and register and if necessary a UK accountant if you remain resident in the UK.

This is a general template for working overseas.

[northernladuk]

Nice post. There are many other resources on Norway available but maybe not at that level of detail but still worth a read so linked below...

IT Contracting in Norway: Living & Working :: Contractor UK

IT Contracting in Norway: Money & Tax :: Contractor UK

And all the other topics related to Norway previously posted in Business/Contracts

norway site:forums.contractoruk.com/business-contracts - Google Search

And all the other topics related to Norway previously posted in Accounting/Legal

norway site:forums.contractoruk.com/accounting-legal/ - Google Search

[cojak]

Thanks for this Jlo1983 and welcome to CUK

[jlo1983]

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