Contract in belgium - no tax there or in the UK?!

**Vito** · 24 April 2007, 09:09

Who knows...the rules and small print are all too complicated for me...but if you are not out the country for a full tax year then generally it is not as simple as it may sometimes seem.

To be considered non-resident in the UK for tax purposes you have to be out of the country for 183 days in a tax year...however, I think this only applies if you are not an 'Ordinary Resident' in the two years prior...(although think this depends where you are working)

It is all very confusing so if anyone on here can clarify the situation on overseas working and tax residency status (including dependencies on different parts of the world, i.e. Europe, Middle East etc as I know there are special rules applying to some parts) then I'm sure that many people would benefit.

There are probably some rules around whether or not the money stays in the country where you earn it as well??

**SizeZero** · 24 April 2007, 09:50

Originally posted by nucastle

Surely this is too good to be true? He says this is something that happens in both belgium and the netherlands.

Pretty sure it's crap. I can't believe you are so close to starting a new contact and havent contacted an accountant or EU tax specialist about this?

I think (but I'm not an accountant) that unless you are out of Britain for over 1 year (366 days), you are obliged to pay tax here? So if you are on a 12 month or less contract, Gordo will stake his claim. But unless you enjoy stress, seek qualified advice fast.

**scooterscot** · 24 April 2007, 09:53

What Belgium’s don't pay tax?! Are you serious? Expatriate or citizen one of the highest tax in all of Europe!

I'm in Norway and I'd rather still be paying UK tax, so I do make sure. Although I do agree the tax rules between two lands can very confusing.

**Vito** · 24 April 2007, 09:56

Originally posted by SizeZero

Pretty sure it's crap. I can't believe you are so close to starting a new contact and havent contacted an accountant or EU tax specialist about this?

I think (but I'm not an accountant) that unless you are out of Britain for over 1 year (366 days), you are obliged to pay tax here? So if you are on a 12 month or less contract, Gordo will stake his claim. But unless you enjoy stress, seek qualified advice fast.

I think its worse than this, I think the 366 days have to include an entire tax year which means you will have to be there until April 2009...unless there are any exceptions relating to certain parts of Europe as there are with some other parts of the world (I think????)

**scooterscot** · 24 April 2007, 10:05

Originally posted by Vito

I think its worse than this, I think the 366 days have to include an entire tax year which means you will have to be there until April 2009...unless there are any exceptions relating to certain parts of Europe as there are with some other parts of the world (I think????)

This is true, if you wanted to pay Belgium tax you should have left the UK prior to April 5th. You are allowed to return to the UK but only for a set number of days per tax year and you cannot exceed x amount at any one time. Even then you'd pay more tax there than in the UK. belgium not Dubai

**nucastle** · 24 April 2007, 10:56

Fair enough - ill do some research. Although it looks like im just going to fall under the same situation as if i was contracting in the UK (im assuming). Uk agent im working with, and invoicing them from the UK etc....

It doesnt worry me that i havent contacted a tax specialist yet ... i only got this gig a matter of days ago. What difference does it make if i speak to them now, or in a few weeks time? Dunno where the 'stress' is going to be here

**scooterscot** · 24 April 2007, 11:11

Originally posted by nucastle

Fair enough - ill do some research. Although it looks like im just going to fall under the same situation as if i was contracting in the UK (im assuming). Uk agent im working with, and invoicing them from the UK etc....

It doesnt worry me that i havent contacted a tax specialist yet ... i only got this gig a matter of days ago. What difference does it make if i speak to them now, or in a few weeks time? Dunno where the 'stress' is going to be here

It's the positive attitude. Nonetheless you got to take into account the cost of living and renting out there and modify your rate if need be.

**Cowboy Bob** · 24 April 2007, 12:33

Not only that, but if you declare that you are not tax resident in this country, then you are only allowed into the UK for only a small number of days in the year (I think it's 30, but can't quite remember). Failure to comply could leave you paying tax in BOTH countries.

**tim123** · 24 April 2007, 14:26

Originally posted by Cowboy Bob

Not only that, but if you declare that you are not tax resident in this country, then you are only allowed into the UK for only a small number of days in the year (I think it's 30, but can't quite remember). Failure to comply could leave you paying tax in BOTH countries.

It's 91 per year (averaged over total period outside the country)

tim

Contract in belgium - no tax there or in the UK?!