Originally posted by HPsauce
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http://forums.contractoruk.com/accou...-security.html
The 183 day rule definitely applies : you can ignore any posts here to the contrary from people who benefit from rakebacks from management companies etc. from a specialist contractor accountant where it says
Your treatment will depend on your residency and the duration of work assignment ‘183 day rule’.
If you are in the country for 183 days or more in any calendar year or for an average of 90 days in any four year period you are deemed to be tax resident. A similar test exists in most European countries.
Travelling days are normally excluded and only full days spent in the country are calculated
If you are in the country for 183 days or more in any calendar year or for an average of 90 days in any four year period you are deemed to be tax resident. A similar test exists in most European countries.
Travelling days are normally excluded and only full days spent in the country are calculated
The best way for the contract to deal with your UK company is to make it the official party to the contract with your name only appearing as the contact person. Do not even have yourself personally named as the worker if you can possibly avoid it.
LIMOSA is not the bear it is made out to be - you don't receive a tax return from the Belgian Tax Authorities (BTA) based on LIMOSA but on whether you are registered as resident in the local commune. You need to register in the local commune *unless* you stay in a B&B or hotel etc.
If you rent a flat then you need to register with the LC and will most likely receive a Belgian tax return which will mean turning to a Belgian accountant for help at additional cost. Flat rental for less than 6 months in Belgium is a PITA anyway because they normally insist on a much longer commitment and mumble something about paying an excess to get out after 6 months if you don't stay. My advice is to avoid renting a house or flat like the plague.
It makes no difference what currency you are paid in in respect of taxation issues but be aware that you will likely be charged a conversion fee by your UK bank and may be hit by exchange rate fluctuations that occur during the length of the contract.
As people here have said, if you get caught by the Belgian tax system you will pay more than 50% tax and so you need to be certain from the outset that you will not be in Belgium for more than 183 days in total. Otherwise just make sure you are charging enough to pay your subsistence and travelling costs as well as UK tax and salary etc. It's very easy to underestimate and HMRC helpfully publish guidelines on what can be claimed in which country see "Worldwide Subsistence Rates", these are a useful guide to how much you are likely to incur in costs.
Hth,
Boo
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