Contracting in UK for German Company

[Crossroads]

I may have the opportunity to do some work for a German firm, but I would remain based in the UK to do this.

What is the most tax efficient payment method for such a scenario?

[alreadypacked]

I may have the opportunity to do some work for a German firm, but I would remain based in the UK to do this.

What is the most tax efficient payment method for such a scenario?

German taxes are higher the UK, I was working for a German company while in the USA and I had a high Per-diem which, was tax free. But only for 3 months, so I had to "move office" to keep it tax free. German medical system is better and I don't think it costs much more than the NI.

It depends on the contract they offer you, but the HR office will be able to tell you your take home pay etc. for you to compare.

HTH

[BlasterBates]

If you remain in the UK you'll pay tax in the UK. There's no choice here. If you're travelling to and fro, then you can be taxed in the UK for 6 months before you become liable in Germany. There isn't much different. If you are working in Germany then use a local German tax consultant and work as a freiberufler. Quite a few British people, who don't really know the German system make the mistake of being employed by the agency, and sometimes wrongly post here that it is too difficult to be a "freibrufler" . Sometimes the end client stipulates they want employees; however this is not a problem and plenty of German agencies "satisfy" this requirement, without you having to give up your freiberufler status.

[letsarb]

I am French and I have my first contract as a freelancer in Germany.
Contractor is not a current status in France and I have to say that it is really different. This is an English agency based in Brussels who introduced me to German company and she gave me advices to become a freiberufler.
So, this agency told me to use a "contractor company or umbrella" called connexioneurope based in Luxembourg who deals with all the papers, it seems very serious. I have to have an German accountant and a health insurance...
Moreover, I know that others umbrella company propose to use offshore banking services, have you any experience with such a thing ?

[BlasterBates]

Be very careful with offshore banking, this usually means tax evasion. When working in Germany you want to work with a reputable Tax consultant, preferably one used by other Freiberuflers, and are familiar with the tax office through which you're working. I don't know about Connexions in Germany but certainly the advice of working as a freiberufler is correct. You need to ensure that VAT is correctly handled. Some British contractors operating through British companies have got stung, but things may have improved. You'll need private medical insurance, but that is usually quite reasonable if you're prepared to pay a percentage of medical costs. Hospital costs are always fully covered.

[julian_sweet]

Agreed Freiberufler

I have nothing but bad experiences of Management Companies in Europe, so decided to go it alone (Belgium). I am far happier, I get paid sooner and am back in control.

Management Companies take at least 5% and do little or nothing for it. Everything is down to the local accountant. Then if they have employed a bad accountant you are stuffed.

My advice would be if you can cut out the middleman and go directly to the a local accountant.

I would not mess with the German tax man. Read the recent news about Liechtenstein bank accounts!

One tip is if you have a SIRET in france read up on E101 if you would prefer to pay social security in France.