Contractor from other country

[Grolubao]

Hi to all!
This is my first post and I'm glad there is a forum about contractors since I'm a bit confused about all this.

So the thing is that I'm from Portugal and I possibly will work in the UK for a 6 month's contract.
I haven't signed the contract yet so I could use some advice from you people.

My questions are related to IR35 and Umbrella company's. Since I don't know if I will be staying in the UK after those 6 months, I believe that the Umbrella company is the best solution for now. I've did a search for some umbrella companys and read some of your opinions and possibly the better one I've found was contractorumbrella. Now, they say the following:

How does ContractorUmbrella help me avoid IR35?

As a client of ContractorUmbrella Ltd, you will not fall under IR35 rules. You will have income tax and national insurance deducted from your fees before you receive payment from us.

Is this true? Or should I pay for someone to look at my contract?

If I'm IR35 I can deduct a part of my expenses (food, accomodation, etc) and reduce the tax right? What is the percentage that I can deduct?

Thanks in advance for all the answers!

[Badgers Armpit]

You are obviously unaware of recent legislation introduced that means anyone from Portugal is not allowed to work in England. I'm surprised that you were actually allowed into the country to be honest!

This was introduced shortly after Saturday, 1 July 2006.

It does not affect Scotland, however. Go up there; I'm sure you'll be very welcome.

HTH

Adeus

[ASB]

Hi to all!
This is my first post and I'm glad there is a forum about contractors since I'm a bit confused about all this.

So the thing is that I'm from Portugal and I possibly will work in the UK for a 6 month's contract.
I haven't signed the contract yet so I could use some advice from you people.

My questions are related to IR35 and Umbrella company's. Since I don't know if I will be staying in the UK after those 6 months, I believe that the Umbrella company is the best solution for now. I've did a search for some umbrella companys and read some of your opinions and possibly the better one I've found was contractorumbrella. Now, they say the following:

How does ContractorUmbrella help me avoid IR35?

As a client of ContractorUmbrella Ltd, you will not fall under IR35 rules. You will have income tax and national insurance deducted from your fees before you receive payment from us.

Is this true? Or should I pay for someone to look at my contract?

If I'm IR35 I can deduct a part of my expenses (food, accomodation, etc) and reduce the tax right? What is the percentage that I can deduct?

Thanks in advance for all the answers!

It's really not that simple. Assuming you are UK resident but not UK domiciled (and this seems likely) then you have some advantages depending upon your exact circumstances.

It is also useful to note that you may well still be resident in portugal this tax year - as well as the UK - thus the provisions on the double taxation agreement between UK and Portugal may become important.

I would suggest you look towards a good accountant and make an appointment to someone in the international tax division. They may give a free initial consultation, but any serious advice will cost.

Unlike Portugal the UK does not operate a withholding tax if the invoices are paid to a non UK enterprise.

I am given to understand the the Azores or Madeira (currently undergoing some rule changes) can be useful places for Portuguese nationals who are working outside Portugal - depending upon circumstances of course.

[malvolio]

Just to clear up one small point - if you go with an umbrella you are outside IR35 because you are employed by the umbrella and will be paying full PAYE and NICs on all your income. It doesn't mean you are saving any tax as a result (and you have to pay the umbrella, but that's another argument!)

As far as I know, you can earn money here and get taxed at home as if it were earned at home. However, you need proper professional advice - inter-EU tax rules are complicated (to say the least!) and things change after 6 months.

[Grolubao]

You are obviously unaware of recent legislation introduced that means anyone from Portugal is not allowed to work in England. I'm surprised that you were actually allowed into the country to be honest!

This was introduced shortly after Saturday, 1 July 2006.

It does not affect Scotland, however. Go up there; I'm sure you'll be very welcome.

HTH

Adeus

yeah, cristiano ruined the contract market for all portuguese! Damn he be! But still it was a good night of celebrations.

[Grolubao]

Just to clarify, the agency that will pay me is based in London.

Were can I get some advice on the subject? I can't believe there isn't anybody who went trough this as well... Is there somebody or some agency that I can send an e-mail to try to get some answers?

Thanks!

[ASB]

Just to clarify, the agency that will pay me is based in London.

Were can I get some advice on the subject? I can't believe there isn't anybody who went trough this as well... Is there somebody or some agency that I can send an e-mail to try to get some answers?

Thanks!

Try here: http://www.pkf.co.uk/web/PKF800.nsf/...A?opendocument

I know people who have recommended PKF, never used them myself. The link above gives you some pointers of things you should be considering. As I said earlier, it's really easy. You make an appointment, you pay. Then you get valid advice appropriate for you.