Reply to: Basic questions

[stek]

At one point I had issues working on government projects under umbrella company and so formed my ltd. co - best thing I ever did.

I like how Mr. EU man would like to "come after" jobs here in the UK... sounds like some sort of invasion! ;-) ..... pie in the sky.

If he's in possession of an EU Blue Card he must be non-EU. Gone very quiet though!!

[baronne]

2) I see also some guys are going through these so called "umbrella" companies which probably hire them as an intermediate company between them and the end client just for the purpose of issuing invoices, correct?

At one point I had issues working on government projects under umbrella company and so formed my ltd. co - best thing I ever did.

I like how Mr. EU man would like to "come after" jobs here in the UK... sounds like some sort of invasion! ;-) ..... pie in the sky.

[PinkPoshRat]

Blimey O'Reilly that tommy tooter is nearly as big as her hair...

[stek]

NO! Us women can't type on anything other than a typewriter - the nearest we'll ever get to IT is to be invited along to a meeting to take minutes.... come on, this is this c21 dear!

Corr! look at this stunner! I don't think she's wearing any knickers the saucy mare!

http://www.minnpost.com/_asset/7qs6m...rMarketing.jpg

[PinkPoshRat]

and some of them are women

NO! Us women can't type on anything other than a typewriter - the nearest we'll ever get to IT is to be invited along to a meeting to take minutes.... come on, this is this c21 dear!

[Pogle]

TBH unless you have an incredibly rare talent and expertise in a rare IT product, I wouldn't even consider coming over to the UK as the market is saturated with very talented IT gurus.

and some of them are women

[PinkPoshRat]

TBH unless you have an incredibly rare talent and expertise in a rare IT product, I wouldn't even consider coming over to the UK as the market is saturated with very talented IT gurus.

[SueEllen]

I suspect our friend is non-EU on a Blue Card EU-wide Work permit which doesn't work in the UK, but let's wait and see....

Explains why he was having trouble with the authorities.

[stek]

In every EU and EEA country there are laws on personal tax residency. This differs for company tax residency.

So even if your foreign employer sends you to a country to work depending on how long you are there you, have to pay personal tax in that country.

In the case of most EU and EEA there is no official way of checking when someone comes in and out. This means the tax authorities rely on honesty. However they also rely on people and other companies reporting people who they think are evading tax. So if you engage a UK accountant or lawyer to assist you they have a legal obligation to report you to the tax authorities if they think something you are doing is not quite right.

This could result in the taxman either fining you or imprisoning you, or chasing you to your country of origin for payment with a fine plus interest payments. Lots of tax authorities around the world now talk to each other.

In regards to setting up a company and handling the set up paper work an accountant can do it all for you for example Nixon Williams who post on here can do it. You don't need to engage with HRMC at all.

To find the rules about UK tax legislation use google. Personally I would talk to a UK based accountant rather than googling. If you read this link for example you will understand why - DT1921 - Non-residents: UK income: Employments: short term visitor exemption 183 day rule

I suspect our friend is non-EU on a Blue Card EU-wide Work permit which doesn't work in the UK, but let's wait and see....

[SueEllen]

I'm not quite sure how this 183 days rule applies as I'm planning to send myself on a business trip to UK from my company. I have a blue card and everything but I'm not going to register as a resident there as I don't plan to become such. Can you point to some documents that can clarify this rule?

In every EU and EEA country there are laws on personal tax residency. This differs for company tax residency.

So even if your foreign employer sends you to a country to work depending on how long you are there you, have to pay personal tax in that country.

In the case of most EU and EEA there is no official way of checking when someone comes in and out. This means the tax authorities rely on honesty. However they also rely on people and other companies reporting people who they think are evading tax. So if you engage a UK accountant or lawyer to assist you they have a legal obligation to report you to the tax authorities if they think something you are doing is not quite right.

This could result in the taxman either fining you or imprisoning you, or chasing you to your country of origin for payment with a fine plus interest payments. Lots of tax authorities around the world now talk to each other.

In regards to setting up a company and handling the set up paper work an accountant can do it all for you for example Nixon Williams who post on here can do it. You don't need to engage with HRMC at all.

To find the rules about UK tax legislation use google. Personally I would talk to a UK based accountant rather than googling. If you read this link for example you will understand why - DT1921 - Non-residents: UK income: Employments: short term visitor exemption 183 day rule

[stek]

Thanks for the heads-up Sue. I guess I'll see how things work in a month or so when I come. Setting up a company in the UK for the moment is out of the question for me, I'm having more than enough headaches dealing with brainless government employees already



I'm not quite sure how this 183 days rule applies as I'm planning to send myself on a business trip to UK from my company. I have a blue card and everything but I'm not going to register as a resident there as I don't plan to become such. Can you point to some documents that can clarify this rule?

Are you an EU citizen or otherwise permitted to work in the UK?

If not and you do have the EEA 'Blue Card' you are not permitted to work or live in the UK (or Ireland or Denmark) as they are exempt from the directive.

[TheGrave]

Thanks for the heads-up Sue. I guess I'll see how things work in a month or so when I come. Setting up a company in the UK for the moment is out of the question for me, I'm having more than enough headaches dealing with brainless government employees already

Plus they find the tax and NI loopholes are better allowing them to keep up to 80% of company income particularly considering if you stay 183 days in the UK you are tax resident anyway.

I'm not quite sure how this 183 days rule applies as I'm planning to send myself on a business trip to UK from my company. I have a blue card and everything but I'm not going to register as a resident there as I don't plan to become such. Can you point to some documents that can clarify this rule?

[SueEllen]

Come on, that doesn't sound serious to me Tax legislation is complex all over Europe mostly because of VAT (which, in that case, is not applicable as I said).

No tax legislation in the UK is complex and VAT is the simplest part of it to get your head round.

In fact the VAT department of HMRC will even help you calculate your VAT etc because you are collecting the money on behalf of them if you are VAT registered.

That's why company hire accountants after all

Even accountants don't agree on the interpretation of tax laws. For example have a search on here about salaries for directors who are the only employee of their company if you don't believe me.

Besides that, many of the IT consultants in the UK are not British (forgot to mention I'm in IT)

I know. I'm in IT also (yes- there are female contractors who work in IT) and I have friends and worked with those from other countries.

and I'm pretty sure at least half of them does not have UK-registered companies. I already have friends out there applying the scenario I quoted.

Lots do use UK companies because loads of agencies won't deal with foreign ones. Some put it in the contracts others just withdraw the contract if you aren't operating from a UK registered company. This is due to the small risk to them if everything isn't above board. (BTW you still may be required to pay corp tax in the UK even if your company is registered aboard depends on tax agreements.)

Plus they find the tax and NI loopholes are better allowing them to keep up to 80% of company income particularly considering if you stay 183 days in the UK you are tax resident anyway.

I should add setting up a UK company can cost you nothing. I set mine up free via my accountant and so do lots of people. Most accountants now have rules in place that as long as you stay with them for year you don't pay anything, but at the time I set mine up mine didn't.

[TheGrave]

You will have to charge VAT. Its done by the customer, effectively they charge themselves VAT on cross border invoices and the same rules about what is reclaimable stand which doesn't make you any cheaper than a standard uk company.

I'm 100% sure you are wrong, I've checked this with a number of accountants, read some EU directives regarding that and lots of local laws in my country. VAT is not charged between EU countries for importing/exporting services (maybe it was for goods but that doesn't matter to me). I'm not coming to sell flowers you know

Lots of problems:
1. UK tax legislation is very complex so there are reasons why you charge VAT
2. Most agencies won't touch non-UK registered companies as they don't want any hassle with HMRC (taxman)

Come on, that doesn't sound serious to me Tax legislation is complex all over Europe mostly because of VAT (which, in that case, is not applicable as I said). That's why company hire accountants after all Besides that, many of the IT consultants in the UK are not British (forgot to mention I'm in IT) and I'm pretty sure at least half of them does not have UK-registered companies. I already have friends out there applying the scenario I quoted.

[SueEllen]

Yes you are, Brian. And you are 55 years of age and balding.

You really must let this 1980's Soap Opera image of yourself go. Remember what the nice man at the clinic said...