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Contracting from France to UK company

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    #21
    Originally posted by zerosum View Post
    It's not an intermediary. Without the UK company the work would not have been obtained at UK market rates. There are very strict internationally accepted rules around this. You cannot ignore transfer pricing. And if you're hoping to get away with it without them noticing, the fines are heavy.
    That's correct, operating via a UK LTD was a non-negotiable condition.
    If I were to use a notional daily rate from a local market, it doesn't help that the contract market in Poland for my services does not exist at all (as in most cases for continental Europe). But if I tried to use a rate from 'similar' markets, and take into account all of the costs of running a branch/another co. (including an additional red tape burden and a good accountants that would be able to handle all of it both sides), remaining taxable profit would be minimal if any.

    Hopefully covid eases soon and I plan to commute to the UK at least for a couple of days a month.

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      #22
      Originally posted by ContractorPL View Post
      That's correct, operating via a UK LTD was a non-negotiable condition.
      If I were to use a notional daily rate from a local market, it doesn't help that the contract market in Poland for my services does not exist at all (as in most cases for continental Europe). But if I tried to use a rate from 'similar' markets, and take into account all of the costs of running a branch/another co. (including an additional red tape burden and a good accountants that would be able to handle all of it both sides), remaining taxable profit would be minimal if any.

      Hopefully covid eases soon and I plan to commute to the UK at least for a couple of days a month.
      Right. I can only see this working if you’re moving to a country which has lower taxation than the UK, so you can afford to swallow both sets of fees and taxes.

      Another aspect is it’s much cheaper to get indemnity insurance in the UK than Europe. So much so that if an agency will accept you using a European company, they will probably accept a lower insurance figure, as that’s the reality of the market. It can be 4-8x the cost for 1m€.


      Sent from my iPhone using Contractor UK Forum

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