Euro Contract Rate vs UK Based

[sathyaram_s]

Talks with an euro umbrella companies and get a calculation ... Look at the authors of the overseas guide to get the list ...

My understanding is that Belgian taxes are higher than UK's ...

You will also have to consider double taxation issues, if you are paid in Belgium ..

Cheers
Sathyaram

Hmm - Ok, so I pitched in at the top level - Euro 800. Agent says Euro 600 max so is putting forward Euro 700. The waiting game begins - not holding my breath though. I work out that after weekly commute costs, accomodation, meals that my taxable equivalent is £390/day at the Euro 700 rate. I'd happily settle for that given that my current £350/day in the UK is with my office being 1 mile from my house.

Can ayone tell me what tax relief I could expect from the £380/week costs for the travel, accom, subsistence?

[dragsworthy]

Hmm - Ok, so I pitched in at the top level - Euro 800. Agent says Euro 600 max so is putting forward Euro 700. The waiting game begins - not holding my breath though. I work out that after weekly commute costs, accomodation, meals that my taxable equivalent is £390/day at the Euro 700 rate. I'd happily settle for that given that my current £350/day in the UK is with my office being 1 mile from my house.

Can ayone tell me what tax relief I could expect from the £380/week costs for the travel, accom, subsistence?

[Pondlife]

Thanks. I've been asked to quote an all-in rate for a job in Brussels .... rate + flights + accom + subsistence.

Currently working in Euroland and find that the locals figure in Euro is what I get in GBP. Flights can be expensive depending on how often you need to travel back and whether you can use a budget airline. Accom - cheaper than in the UK, again it's a case of cost £X in UK and €X on mainland.

Don't let the agent hurry you as you need to think this through otherwise you could underpitch and end up getting screwed.

IIRC the 183 days rule goes from Jan to Jan and so your're safe for this year.

HTH

[The Lone Gunman]

Also, does anyone have a view on whether I should go for a Euro Umbrella service paying UK tax as it is just about under the 183 day rule. Then again, if I get an extension on the 6 months I'll be hammered twice for tax - If I understand the rules.

Again, I am not qualified to give this advice: Look at a number of options. See above for UK Ltd problems.
Look at an offshore management company. They will pay you a local rate which Belgium taxes you on. You then put the rest in a "pension fund" which remains outside Belgian jurisdiction. You should pay the tax on thsi wherever you bring it ashore. In reality (and this is why all tax systems are getting annoyed) most have the pension und paid direct into an offshore account and spend it anyway without declaring it anywhere.
I can recomend a management company based in Denmark if you want to go that route.
Dont use a UK management company. UK rules are a pain.
Dont use a management company which retains your money in a tax agreement. Getting it back is a nightmare.
Go with the offshore management company above and declare incomes as appropriate (or not if you are that way inclined).

[The Lone Gunman]

Whats the 183 day rule? Newbie here pls enlighten!

I am not qualified to explain this:

If you are present in the host country for an agregate ** of 183 days then you become resident of that country for tax purposes.

It is further complicated in Belgium due to your UK Ltd and you may want to think long and hard about using it.

If you are the sole director of your company then Belgium regards your company as being resident wherever you are and that goes from day 1. You have to be able to show that "the seat of power" is outside Belgium to avoid this. If you have a business partner at home and can show that decisions about and the running of the comapny are done at home then you will be OK.

** Some countries calculate from start to finsih and include weekends when you were home, others just count the days you were actualy there.

I've pitched it at a high rate and we'll see what he comes back with. My view is that it's always easier to negotiate down from a high starting point rather than the other way round. I have to cover everything with the rate I quoted - no expenses paid etc.

Also, does anyone have a view on whether I should go for a Euro Umbrella service paying UK tax as it is just about under the 183 day rule. Then again, if I get an extension on the 6 months I'll be hammered twice for tax - If I understand the rules.

Whats the 183 day rule? Newbie here pls enlighten!

[dragsworthy]

I've pitched it at a high rate and we'll see what he comes back with. My view is that it's always easier to negotiate down from a high starting point rather than the other way round. I have to cover everything with the rate I quoted - no expenses paid etc.

Also, does anyone have a view on whether I should go for a Euro Umbrella service paying UK tax as it is just about under the 183 day rule. Then again, if I get an extension on the 6 months I'll be hammered twice for tax - If I understand the rules.

[ChimpMaster]

Yep don't ask the agent, just tell him. Likelihood is that he's not even sure himself. 500 Euros is about the norm I think, but that is not including flights, hotels, food etc. Calculate the average costs you'll be facing on a daily basis (incl. flights) and add that to 500 Euros. Of course you'll need to adjust for your skillset/demand.

Above all, make sure it's worth your while and that you're happy with what you get in your pocket.

I once quoted 1000 Euros to work in Holland. Never heard from him again.

[smee.again]

The agent will likely try to scam you anyway so ask for a higher rate...

[The Lone Gunman]

Thanks. I've been asked to quote an all-in rate for a job in Brussels .... rate + flights + accom + subsistence. A bit tricky as I don't want to over/under price myself. I'm going to have to press the agent for a ball-park figure and negotiate form there. What do yo think? Maybe I just go for what you say returns me a healthy profit.

Are they covering your expenses too? What do you do?
Brussels is not the cheapest place to be, but can be done on a budget.
I was on 500 Euro a day when last there, but see what the others are on (there are a few in Brussels) when they finally wake up.

Do not ask the agent for a ball park. Ask him what is on offer. Wince and tell him you were looking for a lot more than that, cant he do any better then hang up.

[smee.again]

How different are the rates between UK and EU?

[dragsworthy]

Thanks. I've been asked to quote an all-in rate for a job in Brussels .... rate + flights + accom + subsistence. A bit tricky as I don't want to over/under price myself. I'm going to have to press the agent for a ball-park figure and negotiate form there. What do yo think? Maybe I just go for what you say returns me a healthy profit.

[The Lone Gunman]

Hi -When negotiating a rate to work in the EU, is there a scaling factor that I should keep in mind to translate my UK pay rate? Not sure whether working abroad should have a premium added or not - excluding flights, accomodation, subsistence.

As ever: figure out what you think you need to turn a healthy profit, check out what the market has to offer. If the numbers add up then take the job.
Doesnt matter where it is.
It might be worth taking a lower rate if you want to travel.

[dragsworthy]

Hi -When negotiating a rate to work in the EU, is there a scaling factor that I should keep in mind to translate my UK pay rate? Not sure whether working abroad should have a premium added or not - excluding flights, accomodation, subsistence.