Is it best i use my UK Ltd co to work in Belguim

**BlasterBates** · 3 November 2010, 16:12

If you did tax yourself in Belgium you won't be paying any tax in the UK, it's one or t'other.

One thing you can be certain is, if you pay tax in Belgium you will be above board and won't have to worry about whether you comply.

If your contract is short then you probably only pay Belgian tax, not "Sozialversicherung" (it should be possible to avoid this when you're not tax resident), you won't be taxable on all your income because you won't be resident.

If you tax yourself in Belgium then if you were to use your Ltd, which you can, you would setup a branch and register it there, and this branch would have it's own set of accounts and would not be taxed in the UK.

However I would take advice from a Belgian accountant as to how to do business in Belgium. It would probably be easiest to use a reputable (and I stress reputable) umbrella co., if they are efficient at doing these short term contracts.

You could just hide under the radar and hope it's legal or if it isn't that the Belgian authorities don't catch you. I don't know whether it is or not, but I suspect it's "grey" and they could decide to tax you if they really wanted. If I were to do even a short contract in Belgium I would tax myself there, that's what I'm used to doing when I go to another country; that way I know I'm compliant. I find when you're there short term often it's tax efficient anyway (assuming you actually did have a choice), simply because you often benefit from lower tax rates, and they can't touch it again in the UK.

Best to at least take some professional advice. It's cheaper than having no advice and relying on contractors advice, many of whom have fallen foul of tax authorities in various countries.

The other thing to bear in mind is, if you try to tax yourself in Belgium and the tax isn't actually due they would inform you. For example I paid NI in the UK and I wasn't resident, they asked me whether I wanted it refunded, however if I had have done I would have had to pay even more of it in Luxembourg, so I declined.If the Belgians decline to tax you (unlikely but not impossible) then it gets taxed in the UK.

When I started working in Switzerland the German authorities tried to refund my interest and dividend tax payments, it took a bit of correspondence to convince them that I was actually tax resident.

**selinadelvecchio** · 3 November 2010, 16:47

Thanks for your reply very informative.

I think i will take the risk and just keep below the radar, carry on paying UK taxes thru the Ltd company and not pay the Belgium's nothing .........less complicated on a short-term contract.

Hopefully i can claim back B&B expenses too!

**SueEllen** · 3 November 2010, 19:34

If you have another director who is UK based and in charge of strategic decisions then your company will be based in the UK, you can then ask your employer if they will reimburse some of your flights back to the UK to see your family.

Oh and make sure you don't use the same B&B through out the contract.

**manclarky** · 4 November 2010, 09:20

Originally posted by SueEllen View Post

Oh and make sure you don't use the same B&B through out the contract.

Why shouldn't you use the same B&B...?

Also, whilst I'm sat here thinking after reading this, why can't you bill your flights back to UK to your company?
Surely, the costs of getting to ClientCo and back are chargeable??

**selinadelvecchio** · 4 November 2010, 09:27

Originally posted by SueEllen View Post

If you have another director who is UK based and in charge of strategic decisions then your company will be based in the UK, you can then ask your employer if they will reimburse some of your flights back to the UK to see your family.

Oh and make sure you don't use the same B&B through out the contract.

Thanks SueEllen .....good advice!

**selinadelvecchio** · 4 November 2010, 09:31

Originally posted by manclarky View Post

Why shouldn't you use the same B&B...?

Also, whilst I'm sat here thinking after reading this, why can't you bill your flights back to UK to your company?
Surely, the costs of getting to ClientCo and back are chargeable??

Actually i would be going via the EuroTunnel and thought like a UK standard job that i would claim it back as mileage allowance as i'm going from my work address (Brussels) to my home address on a Friday and coming back on the Sunday (though i doubt if i could get away with claiming the Tunnel as an expense).That is what i would normally do in the UK if i was staying away from home during the week and then claiming the mileage back.

**SueEllen** · 4 November 2010, 17:07

Originally posted by selinadelvecchio View Post

Actually i would be going via the EuroTunnel and thought like a UK standard job that i would claim it back as mileage allowance as i'm going from my work address (Brussels) to my home address on a Friday and coming back on the Sunday (though i doubt if i could get away with claiming the Tunnel as an expense).That is what i would normally do in the UK if i was staying away from home during the week and then claiming the mileage back.

Your work address is the place that your employer trades from in the UK. The fact that they have international clients who you, as an employee, have to visit temporary to perform duties is just part of your employer's business.

It depends on your employer what accommodation and travel costs including parking, bridge/tunnel tolls they will reimburse you for.

Download booklets 490 and 480 from HMRC (google for the links) on expenses to see what your employer will allow you to claim.

**Boo** · 5 November 2010, 00:31

Originally posted by selinadelvecchio View Post

Should i be honest and pay some Belgium taxes

Honesty doesn't come into it - if you are working through a UK Ltd Co then you need not pay Belgian tax for the first 183 days you work in Belgium.

The advantage of staying in a B&B is that you do not have a potential business address in Belgium and the BTA cannot sugest your centre of economic activity has moved to B. from day one. And it saves registering at the local commune.

You will most likely be forced to register with Limosa by the client / agency (unlikely to be the agency who asks, since they are a UK firm). You should avoid registering if possible because 1: it's not you who is fined for not complying and 2: not registering will save being sent a B. tax return, which in turn will save you paying a B. accountant for filling it in for you.

If you are going to stay more than 183 days then all bets are off though and you'd better see a B. accountant right away.

Hth,

Boo

**Boo** · 5 November 2010, 00:44

Originally posted by SueEllen View Post

If you have another director who is UK based and in charge of strategic decisions then your company will be based in the UK,

That is not the criterion which is used to determine where your company is based. The BTA take a rounded approach and consider many things including whether you have a "permanent" residence (ie whether you rent a flat) in Belgium, whether your "centre of economic activity" is in Belgium, whether your car is registered in Belgium etc etc.

Originally posted by SueEllen View Post

you can then ask your employer if they will reimburse some of your flights back to the UK to see your family.

The OP will be working through their UK Ltd Co and can claim all travelling and Belgian subsistence under the 24 month rule.

Originally posted by SueEllen View Post

Oh and make sure you don't use the same B&B through out the contract.

It is utterly irrelevant how many B&Bs you use during the contract. B&B accommodation cannot be considered a residence under Belgian law.

Boo

Is it best i use my UK Ltd co to work in Belguim