Determining Tax Location .. too many variables Determining Tax Location .. too many variables - Page 2
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  1. #11

    Nervous Newbie


    Join Date
    May 2018
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    Default I used a UK umbrella when working in Germany

    Hi WhiteRabbit,

    Might be a bit late but thought I should let you know for the future - I used a UK umbrella called IF Contracting (IF Workforce Group) when working in Germany, and before that in Italy. They were very useful and responsive, sorted me out with registration, accountancy and taxes. They were also able to achieve a very good retention rate so I would definitely recommend using this umbrella
    I had some bad experience before with other umbrellas who were unable to claim some expenses they told me they could claim so had to pay more - IF Contracting offered me a guarantee so I was sure to get the amount of money quoted before signing up with them!
    Hope this helps !!
    Quote Originally Posted by WhiteRabbit View Post
    Hi and upfront thanks for any input... including putdowns ,

    I am UK domiciled and tax resident and it will stay that way
    I have an upcoming contract with an end client in Germany.
    The end client has a service delivery contract with a German service provider
    Services from my legal entity will be defined in the contract with the German service provider
    I will work/provide services from home (UK), I will also work/provide services at client site (Germany) and also in other worldwide locations
    Travel to from specfied German location is within rate, other locations will be have travel costs charged to the end client
    It is looking like the physical location where services will be delivered from is something like 45% UK, 45% Germany, 10% elsewhere .. this is all a bit of a guess as it will be driven by the tasks required which in contractual terms are very broad.

    I no not have a issue with paying taxes (honest !!!) but what I cannot figure out is where I should actually be paying tax and the mechanics for doing that.
    I could consider the German trips as business trips .. which they would be, but if my work attendance in Germany was more than UK then that might be a tricky argument
    I ultimately have a number of options but there is a need for some flex as I do not know at this point where the majority of work will be undertaken.
    Choices are :
    German Umbrella
    UK Umbrella
    UK Ltd

    I have talked to my usual Admin. company and the key driver is 'where is most of the work executed' but maybe that is not quite correct with the permutations above.

    Any thoughts appreciated and welcomed

  2. #12

    Some things in Moderation

    cojak's Avatar
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    Default

    Quote Originally Posted by Lkahncontractor View Post
    Hi WhiteRabbit,

    Might be a bit late but thought I should let you know for the future - I used a UK umbrella called IF Contracting (IF Workforce Group) when working in Germany, and before that in Italy. They were very useful and responsive, sorted me out with registration, accountancy and taxes. They were also able to achieve a very good retention rate so I would definitely recommend using this umbrella
    I had some bad experience before with other umbrellas who were unable to claim some expenses they told me they could claim so had to pay more - IF Contracting offered me a guarantee so I was sure to get the amount of money quoted before signing up with them!
    Hope this helps !!
    I wouldn’t use any umbrella that promises a good retention rate, not here and certainly not Germany where they treat dodgy tax dealings as criminal behaviour.

    Treat the German tax system with the greatest respect at all times. Hell awaits if you don’t.

  3. #13

    My post count is Majestic

    northernladuk's Avatar
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    Mar 2009
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    Quote Originally Posted by Lkahncontractor View Post
    IF Contracting offered me a guarantee so I was sure to get the amount of money quoted before signing up with them!!
    Hmmm.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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