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Contract Resources for UK Nationals
UK Nationals can work freely in the Republic of Ireland, Germany, Belgium, the Netherlands & all other European Economic Area (EEA) Countries. If you’re an experienced British IT Consultant you may not have to worry about a European work visa, but you should consider the tax implications of consulting abroad! At Commonwealth Contractors we may be able help!
When considering Consulting abroad you should be aware that:
- Overseas Tax Rates are normally higher than the UK
- Overseas Social Security rates are significantly higher than in the UK
- You may have an ongoing UK tax liability whilst overseas
Ideally, you would remain liable for UK taxes whilst undertaking a European assignment, however using a UK Contractor Limited Company can cause endless headaches. Some Contractors say ‘use and offshore company’ but you know that by doing this you will be taking the ‘I hope I don’t get found out’ approach. So what’s the best solution?
If you would you like to consult in the Republic of Ireland, Germany, Belgium, the Netherlands or another EEA Country Commonwealth Contractors may be able to help! For more Information call now on 0800 294 4388 or Submit your Details and we will get back to you!
Contractor Limited Companies
There are more Contractor Limited Companies in the UK then the whole of the European Union put together, using one is a very British way of doing business.
If you run your own Contractor Limited Company you are strongly advised not to use it when consulting abroad. This is due to the fact that the company will normally be considered to be tax resident wherever company management & control are physically present. For example a Company based in the Channel Islands will be deemed to be UK tax resident if the company is controlled in the UK. The same applies the other way around i.e. a UK one man Limited Company is tax resident in Germany if control & management are based in Germany.
If you do decide to use your own Contractor Limited Company you could find that the company becomes liable for overseas Corporation tax at a significantly higher rate than in the United Kingdom.
Offshore Companies
Using an Offshore Company (e.g. Channel Islands, Isle of Man etc) is not really an option when consulting abroad. These companies do not comply with European Social Security Legislation and therefore using one is not an option.
UK Taxation whilst abroad
Many British Consultants working overseas continue to have a UK tax liability, unless an entire tax year (April to April) is spent outside the UK. In which case it may be possible to claim an exemption from the UK tax system.
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