Reply to: Contracting through foreign country company

[Confounded]

Not likely, the OP was banned.

Dear jamesbrown,
Thank you for your reply. Perhaps you could point me to either a thread that has discussed this topic (non-UK-domicile working in the UK on a long-term contract between a UK-based company and non-UK-based company) or a consultancy company that can deal with this topic. Thank you

[BlasterBates]

Actually I think the British term tax resident is a bad term as it implies you pay tax or not pay tax.

First of all HMRC doesn't use the term "tax resident", they use the term resident. You are only resident in one country, however you are liable for tax wherevever you earn money. If you are resident in the UK you pay tax on your wordwide income, but there are plenty of non-residents in the UK who perhaps commute over. For example a Calais resident commuting to Dover for a few months will be French resident but not a British resident, but will pay tax on his UK income. He will not have dual residency. That is excluded in all tax treaties in the EU and Switzerland.

The German's use a more approriate term "unbeschränkt Steuerpflichtig" roughly translated means "unlimited tax liability" which means nothing more than you are liable for tax on all your worldwide income. However even if you are not "unbeschränkt Steuerpflichtig" you are still liable for tax, i.e. "beschränkt Steuerpflichtig" or limited tax liability.

Just wanted to clarify that point

[jamesbrown]

Dear gabox01,

Could you please share your experience with working in the UK via a non-UK company. Any information you could share would be greatly appreciated.

Thank you

Not likely, the OP was banned.

[Confounded]

Hi,

Let's say i have a company in Hungary, and want to contract through that company in UK, and probably in Switzerland.

Can i do that?
Are there any negative effects?

Thanks

Dear gabox01,

Could you please share your experience with working in the UK via a non-UK company. Any information you could share would be greatly appreciated.

Thank you

[ASB]

What about taxation in this case?

I mean is it OK, to charge my UK customer 400+VAT/day, and pay all the taxes in Hungary? I would like to avoid the complexity of double taxation (if such thing exists, i'm not sure)

It is not a matter of election. If it were I'd happily have spent 30 odd years working out of a gibraltar based co.

It is a matter of the facts pertinent toy your case.

Your residence is important (and that doesn't mean where you live, it is quite possible to be tax resident in multiple jurisdiction).

Your domicile is important.

Where you have ties to is important.

The same also goes for the company.

There is then the matter of the local laws where you are working.

Generally though it will all come out in the was without too much problem (unless you want a fancy scheme).

I(f you work on the basis that the worst you will pay will be the higher of the rates in the countries involved then you won't go far wrong.

[Clare@InTouch]

What about taxation in this case?

I mean is it OK, to charge my UK customer 400+VAT/day, and pay all the taxes in Hungary? I would like to avoid the complexity of double taxation (if such thing exists, i'm not sure)

It depends if you're tax resident in Hungary or the UK, or both.

[Dylan]

VAT gets complicated with the supply of services between companies in the EU.

Where to tax? - European commission

[gabox01]

Best to tax urself in UK, as an EU cit u can do that, otherwise any tax savings u might think you are saving by being Hungary based will be eroded by the costs of employing an EU-tax savvy specialist to sort out your tax affairs, UK tax on ur contracted income will be roughly 20%, is it worth it?

Would definitely worth it, becuase I currently tax 40% of my gross revenue in Hungary...

[stek]

What about taxation in this case?

I mean is it OK, to charge my UK customer 400+VAT/day, and pay all the taxes in Hungary? I would like to avoid the complexity of double taxation (if such thing exists, i'm not sure)

Best to tax urself in UK, as an EU cit u can do that, otherwise any tax savings u might think you are saving by being Hungary based will be eroded by the costs of employing an EU-tax savvy specialist to sort out your tax affairs, UK tax on ur contracted income will be roughly 20%, is it worth it?

[gabox01]

What about taxation in this case?

I mean is it OK, to charge my UK customer 400+VAT/day, and pay all the taxes in Hungary? I would like to avoid the complexity of double taxation (if such thing exists, i'm not sure)

[ASB]

The simple answer is "yes, you can".

The next thing is "will whoever you are delivering services to accept invoices from the company".

Assuming they will then yes you can (i.e. you are able to).

There are, however, a number of implications related to taxation. Where tax is pid, th amounts it is paid on. That is from the corporate view.

There there are tax implication for you perso0nally. Any money you receive from the company. And then, depending upon where you are and what their rules are, they may want to conside amounts billed b the company as your personal income.

By all means do it, but accept that you are walking into a hornets nest of possible pain further down the line if not everything is declared correctly to the right authorities.

[gabox01]

Talk to an accountant, that's way too broad a question to rely on advice given by people who don;t know your full position. You need to consider residence and domicile for a start.....

I'm an IT contractor (programmer), for short/mid term onsite work.

[gabox01]

You won't be allowed to use it in Swtzerland that's for sure, the Swiss are very strict but then again do you intend to work remotely?

No, on site. UK would be fine? Is it because of EU?

[Clare@InTouch]

Talk to an accountant, that's way too broad a question to rely on advice given by people who don;t know your full position. You need to consider residence and domicile for a start.....

[The Spartan]

You won't be allowed to use it in Swtzerland that's for sure, the Swiss are very strict but then again do you intend to work remotely?