Reply to: Quit European contract or pay 10k back taxes?

[camfish]

You do realise don´t you that when you rent a flat you are tax resident, it overules the 183 day rule.

You are liable for tax from day one, and after you´ve registered you´ll be be given a tax code. If you leave and deregister and don´t declare I suspect they wouldn´t chase it up, but if you don´t that´s tax evasion.

From the Finnish tax website:
'If you stay in Finland max. 6 months.....If your employer is a non-Finnish company, Finland will not tax your income...'
Nothing about renting a flat. I'm not registered until I register myself.

If I quit, there's nothing to pay. If I stay I'll be working through a management company instead of my UK umbrella, and declaring everything.

[Boo]

You do realise don´t you that when you rent a flat you are tax resident, it overules the 183 day rule.

C'est coq, ca.

Boo

[BlasterBates]

I'm 100% sure that paying UK taxes is OK for 6 months, so I don't think that's an issue.

Anyway it loooks like I'll be staying, so now I just have to come up with an excuse for not registering with the local police within 3 months - could be a small fine at most - oops.
And then I have to decide whether to pay import tax and registration fees on my motorcycle if I want to bring it here again next summer, as I'll be a resident, so can't use a 'foreign' vehicle. Perhaps I ought to start a new thread on that topic...

You do realise don´t you that when you rent a flat you are tax resident, it overules the 183 day rule.

You are liable for tax from day one, and after you´ve registered you´ll be be given a tax code. If you leave and deregister and don´t declare I suspect they wouldn´t chase it up, but if you don´t that´s tax evasion.

[doodab]

I'll probably try to get an estimate of the import taxes for my bike. If the cost isn't too high, and I can easily switch it back to the UK registration at the end of summer.... Can't see me buying one here. Anyway, that's if I stay past next spring.

Aside from the fact it will be below freezing for several months the roads will be covered in snow and ice. You will be required by law to have winter tires, you are allowed tires with metal studs in.

[Wanderer]

I'll probably try to get an estimate of the import taxes for my bike. If the cost isn't too high, and I can easily switch it back to the UK registration at the end of summer.... Can't see me buying one here. Anyway, that's if I stay past next spring.

Was gonna say, you are a hard man if you bike around Finland in the winter.

[BolshieBastard]

Probably a bit last minute to post this, but any advice would be appreciated.

I'm almost at the end of a 6 month contract in Europe, and have been offered an extension to the end of next year, but will have to pay 12,000 Euros back tax if I stay longer than 183 days. The net cost to me will be about GBP 6k after claiming back the uk taxes I've paid.

It's a good gig with a well-known company, and I've already verbally agreed to stay, but it's going to be sooo painful handing over that amount to a foreign Hector.

Is it a good time to go back to blighty looking for a new role? Or should I bend over and pay the cash, and improve my CV by %200 while earning slightly more than enough to live on (after the stupidly high tax rate here)?

Ideas/suggestions?

And you're going to earn how much out of the extension? And you have to pay 12000 euros as a penalty for the extra 14 months you've got gauranteed work?

Kinell!

[camfish]

when i worked abroad, a colleague got Cross border worker status. He was taxed in the uk and used their uk registered cars.

As a resident after 180 days, it wasnt possible to get cars registered because the locals wanted bribes and the beauracrats made it as difficult as possible. That meant renting/buying a local car

Cross-border workers - European commission

I'll probably try to get an estimate of the import taxes for my bike. If the cost isn't too high, and I can easily switch it back to the UK registration at the end of summer.... Can't see me buying one here. Anyway, that's if I stay past next spring.

[camfish]

and



I really hope you're not in Germany because everything you've said above could put in the slammer

No, it's Finland. Using a UK umbrella is perfectly legit here for 183 days - I've spoken to the tax people here. If I then stay longer, which is probably what I'll do, there's just the small matter of paying back 6 months worth of taxes, then claiming my UK taxes back. Next April Oh well, it's a good career move. I think.

Not registering after 3 months cost someone a 200 Euro fine

Cross border worker status?

when i worked abroad, a colleague got Cross border worker status. He was taxed in the uk and used their uk registered cars.

As a resident after 180 days, it wasnt possible to get cars registered because the locals wanted bribes and the beauracrats made it as difficult as possible. That meant renting/buying a local car

Cross-border workers - European commission

[darmstadt]

Sorry, forgot to mention that I'm currently using a UK umbrella.

and

Anyway it loooks like I'll be staying, so now I just have to come up with an excuse for not registering with the local police within 3 months - could be a small fine at most - oops.
And then I have to decide whether to pay import tax and registration fees on my motorcycle if I want to bring it here again next summer, as I'll be a resident, so can't use a 'foreign' vehicle. Perhaps I ought to start a new thread on that topic...

I really hope you're not in Germany because everything you've said above could put in the slammer

[camfish]

In fact you can't exclude the possibility, admittedly remote that you should pay tax anyway on your 182 days. There was a posting on this, that "Hectors" can demand you pay tax from day one. That is because the 183 day rule applies to personal residency and not business tax residency. The rule for business tax residency is woolly indeed, i.e. where is the economic interest of the business, and if you are a sole director and working there the foreign Hector could demand tax on your activities in their country. In fact this in the DTA for businesses, that activities you do in their land should be taxed there. So maybe you aint losing anything anyway. In fact the posting on this from a tax expert in this forum was quite explicit about Germany, they expect tax from day one not day 183.

Sorry, forgot to mention that I'm currently using a UK umbrella.

[camfish]

In fact you can't exclude the possibility, admittedly remote that you should pay tax anyway on your 182 days. ...

I'm 100% sure that paying UK taxes is OK for 6 months, so I don't think that's an issue.

Anyway it loooks like I'll be staying, so now I just have to come up with an excuse for not registering with the local police within 3 months - could be a small fine at most - oops.
And then I have to decide whether to pay import tax and registration fees on my motorcycle if I want to bring it here again next summer, as I'll be a resident, so can't use a 'foreign' vehicle. Perhaps I ought to start a new thread on that topic...

[BlasterBates]

In fact you can't exclude the possibility, admittedly remote that you should pay tax anyway on your 182 days. There was a posting on this, that "Hectors" can demand you pay tax from day one. That is because the 183 day rule applies to personal residency and not business tax residency. The rule for business tax residency is woolly indeed, i.e. where is the economic interest of the business, and if you are a sole director and working there the foreign Hector could demand tax on your activities in their country. In fact this in the DTA for businesses, that activities you do in their land should be taxed there. So maybe you aint losing anything anyway. In fact the posting on this from a tax expert in this forum was quite explicit about Germany, they expect tax from day one not day 183.

[camfish]

Difficult to say exactly without knowing what your skillset is but looking for a contract at this time of year is tough as it is let alone during a recession.

If you are enjoying what you are doing then sit tight - as you say, it is good experience and at least you are not making a loss.

And get over the fact you are having to pay taxes to a foreign Hector - they are all the same () whether he has a French, Dutch or British accent.

Yes, that's what I'm starting to think. And my skillset is nothing to shout about. I'm a test engineer (but doing something fairly specialised) with coding experience, and currently doing some test automation using Python. I'm certainly not a box ticker like some of the Bobs and Bobettes at the client's site. Where does the term 'Bob' come from anyway?. I'm guessing it refers to our 'colleagues' from the Indian sub-continent?

Thanks for the input.

[Clippy]

Difficult to say exactly without knowing what your skillset is but looking for a contract at this time of year is tough as it is let alone during a recession.

If you are enjoying what you are doing then sit tight - as you say, it is good experience and at least you are not making a loss.

And get over the fact you are having to pay taxes to a foreign Hector - they are all the same () whether he has a French, Dutch or British accent.