Umbrella if not UK resident

[NotAllThere]

Rather than continue speculation, I think I'll wait of the OP to clarify. And if necessary get Nick to move this to the right forum.

[ExpatChris]

Thanks for the replies and input chaps.

Currently I'm looking for a contract, which might come under IR35, it might not, it depends on client, but I generally do short term project work.
I am planning to work from Malta and was looking for an Umbrella who could handle payroll for me.

[cojak]

May I refer you to the threads regarding Germany and Belgian tax inspectors - and suggest you think for a minute.

I'm sorry to say this but as a Moderator you really should not be posting on things where it is clear that you don't understand the complete picture as remember this is in the umbrella companies channel which is about becoming an employee of an umbrella company and the consequences of doing so.

Finally

I hope Cojak has plenty of time post retirement as she will have to answer the questions I usually deal with here.

They'll have to go unanswered I'm afraid as you have more knowledge than I have and I have neither the energy nor motivation to learn it.

[NotAllThere]

Thanks for the replies and input chaps.

Currently I'm looking for a contract, which might come under IR35, it might not, it depends on client, but I generally do short term project work.
I am planning to work from Malta and was looking for an Umbrella who could handle payroll for me.

AIUI, legally, you do not have to go through a brolly nor do you need a payroll company. You should be able to invoice the client or the agency directly (notwithstanding local Maltese laws).

However, as Eek rightly points out, many clients and agents will simply move on to the next UK based, easy to handle contractor. Clients and agencies are risk averse. There have been discussions about this scenario in this and the main Accounting/Legal forum. I suggest you have a look there. There's a company called International Umbrella - they may be able to help, this is not a recommedation.

In my case, I was the person wanted by the client before we ever began to look at at how to handle payment.

[martinInMalta]

Hi
i am a UK citizen, resident and working in Malta
i make my living doing UK contract work..

there are afew umbrella companies that will enable you to be paid gross, and sort out the billing process with the end client...

in my experience they all do charge around 5% of your rate for this service.

you then need to use an accountant in Malta
to do your maltese tax return and VAT - you also need to pay your NI contributions..

you charge VAT At 0% - but have to legally be register if your turn over exceeds 25k euros

the best umbrella to Speak to is Sapphire,
there are others such as International Umbrella ltd..

Hope this helps

[eek]

Hi
i am a UK citizen, resident and working in Malta
i make my living doing UK contract work..

there are afew umbrella companies that will enable you to be paid gross, and sort out the billing process with the end client...

in my experience they all do charge around 5% of your rate for this service.

you then need to use an accountant in Malta
to do your maltese tax return and VAT - you also need to pay your NI contributions..

you charge VAT At 0% - but have to legally be register if your turn over exceeds 25k euros

the best umbrella to Speak to is Sapphire,
there are others such as International Umbrella ltd..

Hope this helps

Heads off to read the FSCA's charter to see what it says about this type of scheme (where a umbrella is pretending to "employ" an overseas worker).

Hmm, it doesn't cover it - one for Mr Bryce when he arrives.

[NotAllThere]

...

there are afew umbrella companies that will enable you to be paid gross, and sort out the billing process with the end client....

Sounds more like an agency set up than a brolly.

[jamesbrown]

Sounds like the OP has a woefully out-of-date understanding of the UK tax residency rules, which determine whether they pay tax on their worldwide income in the UK (with treaty protections TBD). Obviously, you pay tax on work based on where the work is performed, regardless of tax residency, but the OP is quite probably UK tax resident too.

[panders]

Just wondering how things worked out for you? I'm in a similar situation in that I am resident for tax purposes in Guernsey and will be doing a contract in the UK where I only need to be on UK soil 50% of the working week. In terms of UK tax I am non resident there for tax purposes but need to pay tax in Gsy on my global income. Umbrella's seem to be struggling with what to do, some have suggested HMRC will issue me with a NI tax code and I wont be taxed in UK, others have suggested I go the self-employed route and others just PAYE and claim back my UK tax.

[NotAllThere]

Just wondering how things worked out for you? I'm in a similar situation in that I am resident for tax purposes in Guernsey and will be doing a contract in the UK where I only need to be on UK soil 50% of the working week. In terms of UK tax I am non resident there for tax purposes but need to pay tax in Gsy on my global income. Umbrella's seem to be struggling with what to do, some have suggested HMRC will issue me with a NI tax code and I wont be taxed in UK, others have suggested I go the self-employed route and others just PAYE and claim back my UK tax.

Income coming from the work you've physically carried out in the UK is taxable in the UK. Residency is irrelevant. NI is also due. You may be tax resident - there's more to it that 180 days rule. https://www.gov.uk/tax-foreign-incom...e%20tax%20year

Any tax you're charged in the UK and Guernsey will be offset against each other. I.e. you won't be taxed twice on the same income.