Working with German customers in 2021, is it possible?

[ViatoremDiEfa]

The Freiberufler (Freelancing Professional) status is not the easiest solution, since you will be cross-checked by both the Finanzamt (Tax Office), and the Rentenversicherung (State Pension Fund). They both want to prove that you are not a Freelancer. Look into ways to avoid the "Scheinselbständigkeit" (fictional self employment). The state pension fund is especially interested to have their cut of your money. At the very latest in 2030 the Freelancers will also have to pay into a pension plan regulated by the Government[1]. Just set up a GmbH and buy stocks or whatever at the end of the year to not have to declare the revenues as profits.



[1]https://www.welt.de/wirtschaft/article220588440/CDU-Papier-zur-Rente-Beamte-sollen-ab-2030-in-Rentenkasse-einzahlen.html

[lecyclist]

It is the only sensible option. Prepare to spend some cash if you want a GmbH.

I would not consider using a UK LTD with no withdrawal provision for service companies.

OP can check this link also for more info (not sure how current it is, but the application process is clearly explained):
How to Become a Freiberufler in Germany! — Nomaden Berlin

[clearedforlanding]

Freiberufler status is also an option. A local steuerberater (accountant) would be helpful to ensure your application to the Finanzamt is presented correctly. There is an old post against my profile describing my experience working in Germany.

It is the only sensible option. Prepare to spend some cash if you want a GmbH.

I would not consider using a UK LTD with no withdrawal provision for service companies.

[dsc]

Thank you for the answers.

Normally the agencies are located in Germany, I have asked a couple of agencies and some of them will continue working with UK limiteds and some others not...

I see 3 different options:

• Keep working through UK limited - Best case.
• Create a Branch in Germany of my UK limited, BUT it depends on the Brexit output Because maybe they are not recognise as a companies anymore.
• Create a company in Germany (I have EU passport), but this option implies paying 2x accountants, etc..

If anyone has a better one, I would love to hear it!

Perhaps create an LTD in an EU country and use that to deal with the German branches? Just not sure how easy that would be as normally residency is required for this me thinks.

This is what I'm planning to do if Brexit causes issues and the Danish agency I'm going through decides that enough is enough (I've got Polish citizenship, so can set up shop there).

[zonkkk]

I don't know, but one of my LinkedIn recruiter connections has just been promoted to Head of European Contracts Division... I wonder if it's just a move to make it easier to get rid of him in the new year...

[darmstadt]

A couple of things have changed since then, primarily Brexit which means no freedom of movement and ANÜ which is similar to IR35

Try this thread perhaps?

https://www.contractoruk.com/forums/...inter-gig.html

Sent from my 5g carrier pigeon

[ladymuck]

Would like to read that old post but can only see 2 previous posts when accessing your profile?

Try this thread perhaps?

https://www.contractoruk.com/forums/...inter-gig.html

[BillHicksRIP]

Freiberufler status is also an option. A local steuerberater (accountant) would be helpful to ensure your application to the Finanzamt is presented correctly. There is an old post against my profile describing my experience working in Germany.

Would like to read that old post but can only see 2 previous posts when accessing your profile?

[lecyclist]

Thank you for the answers.

Normally the agencies are located in Germany, I have asked a couple of agencies and some of them will continue working with UK limiteds and some others not...

I see 3 different options:

• Keep working through UK limited - Best case.
• Create a Branch in Germany of my UK limited, BUT it depends on the Brexit output Because maybe they are not recognise as a companies anymore.
• Create a company in Germany (I have EU passport), but this option implies paying 2x accountants, etc..

If anyone has a better one, I would love to hear it!

Freiberufler status is also an option. A local steuerberater (accountant) would be helpful to ensure your application to the Finanzamt is presented correctly. There is an old post against my profile describing my experience working in Germany.

[Londonup]

Thank you for the answers.

Normally the agencies are located in Germany, I have asked a couple of agencies and some of them will continue working with UK limiteds and some others not...

I see 3 different options:

• Keep working through UK limited - Best case.
• Create a Branch in Germany of my UK limited, BUT it depends on the Brexit output Because maybe they are not recognise as a companies anymore.
• Create a company in Germany (I have EU passport), but this option implies paying 2x accountants, etc..

If anyone has a better one, I would love to hear it!

[GhostofTarbera]

German regulators are making all EMI’s setup German companies to offer services in Germany (pain the arse process) might be same for agencies


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[GigiBronz]

I think the main issue would be dispute resolution and VAT payments. Where would someone in the supply chain go if there is a dispute? What would stop one of the parties getting nasty and not paying the other when they know there might be no consequences for it?

One more month and we'll find out...

[rocktronAMP]

Hello!

Is there someone working with German agencies through their own limited in UK?

I got told that some of the agencies are not going to work with Limited’s after the 31st of Dec.

Has anyone else with the same problem thought about solutions?

Thank you!

This is a bit of headscratcher, because more information is required.

Are your agencies based in the UK or Germany?

If your agency / umbrella is based in Germany, check if they have a UK office or any official presence in the UK

Is your end client in Germany? I will assume yes, do they have a UK office or presence in the UK

You need to consider payment supply chains, I think. Check if companies are owned or part owned by bigger companies.

Essentially, if your UK Limited company is the ONLY legal entity in the UK (obviously with an "office" and presence) then you are not PAYE and therefore your LTD may be paid outside IR35. The rest of payment supply chain is foreign (but hey you need to prove that irrevocably)

I would discuss with tax specialists and advisors.

[eek]

Truthful answer - we don't know as we don't know what rules apply from 1st January.

[Londonup]

Hello!

Is there someone working with German agencies through their own limited in UK?

I got told that some of the agencies are not going to work with Limited’s after the 31st of Dec.

Has anyone else with the same problem thought about solutions?

Thank you!