EU Company/Consultant contracting in UK

**northernladuk** · 16 August 2011, 15:30

Здравейте и добре дошли на форумите!

I don't think there will be many people with Bulgarian LTD's but we do have a few questions about cross European working. You could try a search in the top right and use the advanced feature. Use a keyword that is relevant and just contrain it to searches in Business and Accounting forums.

Maybe something will be helpful there.

**nirth** · 16 August 2011, 15:38

I am trying to search, but most topics cover registering new company, or working under umbrella. Which is not what I want, I thought the whole point of EU – is that I don't have to run around and register company in every country

**SueEllen** · 16 August 2011, 16:52

Rule of thumb in the UK is agencies only know how to deal with umbrella companies, and small limited companies registered in the different legal jurisdictions of Great Britain and NI.

Lots of them will refuse to deal with you if you have anything different even if you can clearly show them your set up is legitimate and won't leave them with a large tax bill.

Possible useful pages from HMRC -

HM Revenue & Customs: Tax Treaties in force - Bulgaria

http://www.hmrc.gov.uk/cnr/hmrc6.pdf

http://customs.hmrc.gov.uk/channelsP...yType=document

**BlasterBates** · 16 August 2011, 17:40

Originally posted by nirth View Post

Hello Board

I've tried to search on both this site and hmrc.gov.uk, but could not find any relevant data, which probably means that I'm using wrong keywords.

Story is – I have a limited company in Bulgaria with VAT registration. And I got a contract with UK agency to work on-site in London. Contract deals with software engineering so it's falls in Consulting category I guess.

I called Home Office, and they told, me that I don't need to register and stuff, however accounting department in company does not know how to deal with me, and recommended Umbrella company. I'm trying to contact HMRC but I'm wondering if anyone dealt with anything like this and/or have experience. And maybe could give me advice or keywords to use.

Thanks in Advance.

It would probably easier to go through an umbrella co. for the duration of the contract. Declare all your stuff to HMRC and you'll probably end up with a tax rebate. It highly highly unlikely, unless HMRC actually say you're not taxable, that there will be additional tax in Bulgaria. The norm is it is taxed once and left alone in the other country.

It could actually work in your favour as HMRC would not take into account any other earnings and would tax you simply on the amount you earned in the UK, that is because you are not tax resident. The chances are the tax rate will be low, with probably no National Insurance to pay, and in Bulgaria you wouldn't be taxed. It is also possible that HMRC would refund your tax completely so just let the system put it's wheels in motion.

I would advise getting a UK accountant to handle this for you.

**yasockie** · 16 August 2011, 18:51

You just need to convince your client that dealing with a Bulgarian Ltd is not different than a UK one - they just get an invoice with different set of number.
Also normally, you would not add VAT to cross-EU transactions.

Finally, have you researched the tax levels in Bulgaria etc? It might be a bit of a hassle to set up a UK Ltd but, but might be worthwhile tax wise, or maybe even keeping both...

**nirth** · 16 August 2011, 20:30

Thanks yasockie, BlasterBates

Do you think I can find any document on HMRC or Home Office site to support it? I asked my accountant in Bulgaria, and she confirmed this, but It would help, if I can present some official article. I'm trying to search for "cross eu"/"cross european union" articles, but no luck so far.

**northernladuk** · 16 August 2011, 20:38

Originally posted by nirth View Post

Thanks yasockie, BlasterBates

Do you think I can find any document on HMRC or Home Office site to support it? I asked my accountant in Bulgaria, and she confirmed this, but It would help, if I can present some official article. I'm trying to search for "cross eu"/"cross european union" articles, but no luck so far.

Try using a few different country or capitals names. The threads tend to be something like.... Contracting in UK Swiss LTD. Not sure how searching different countries will help you but worth a look. I think we have had Norway, Netherlands a few times, Brussels a lot, Belgium etc...

**nirth** · 16 August 2011, 21:28

Nah, I suck at it, I find lot's of topics about UK residents working abroad, and EU residents without limited using umbrella. I guess I'll pay for my lack of search-skill by getting consultation with solicitor, and try again tomorrow morning.

Thanks all =)

EU Company/Consultant contracting in UK