You'll probably be tax resident in both places...now we've had a big discussion about this and it isn't easy, the worst case is that the UK will charge you some difference between tax already paid in the other EU country, that is if the Euro zone tax rate is lower. Now my understanding of the double taxation treaties is that only dividends or interest is subject to this form of tax credits, and in the treaties I've read it clearly states tax credits for divis, but not for employment or income for personal services.
Unfortunatley you'll probably need tax advice both where you will be working and in the UK. Don't rely on a UK accountant, for tax advice where you will be working.
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Reply to: Working in the Euro Zone
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Previously on "Working in the Euro Zone"
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Originally posted by MarillionFan View PostLooks like I might have the opportunity to work in the Euro Zone for a while on a new contract. Trying to negotiate a 2000 Euro - 3 day week.
Contract would be for a year and primarily I'll fly over Monday night and come back Thursdays.
Now, whats the deal with working outside the UK and tax. Anyone explain the tax situation to me here?
MF
HTH
tim
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MF welcome back to the dark side
what happened in permiedom ?
Milan.
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Originally posted by MarillionFan View PostLooks like I might have the opportunity to work in the Euro Zone for a while on a new contract. Trying to negotiate a 2000 Euro - 3 day week.
Contract would be for a year and primarily I'll fly over Monday night and come back Thursdays.
Now, whats the deal with working outside the UK and tax. Anyone explain the tax situation to me here?
MF
You'll remain resident in UK for tax purposes so nothing changes as far as your UK taxes go, assuming you use your UK Ltd co. You'll be in the foreign country less than 180 days so don't bother registering or doing anything silly like opening a local bank account.
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Suggest you do research on a thing called "Perpetual Traveller", there are many UK contractors wandering Euroland doing this.
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My understanding
Is that the siuation you describe that Hector will not consider you non-resident for UK tax reasons therefore you will be liable to UK tax on all worldwide earnings.
If you pay tax in the Euroland country then this is taken into account with the joint tax agreements in place.
Things such as whether you get a hotel or rent a serviced apartment will influence whether the Euroland country you are going to consider you resident for their tax purposes.
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Originally posted by MarillionFan View PostLooks like I might have the opportunity to work in the Euro Zone for a while on a new contract. Trying to negotiate a 2000 Euro - 3 day week.
Contract would be for a year and primarily I'll fly over Monday night and come back Thursdays.
Now, whats the deal with working outside the UK and tax. Anyone explain the tax situation to me here?
MF
That's my "head in the sand" approach anyway.
Edit: Just to note that I meant you're not liable for German tax. UK tax, yes.
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Working in the Euro Zone
Looks like I might have the opportunity to work in the Euro Zone for a while on a new contract. Trying to negotiate a 2000 Euro - 3 day week.
Contract would be for a year and primarily I'll fly over Monday night and come back Thursdays.
Now, whats the deal with working outside the UK and tax. Anyone explain the tax situation to me here?
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