Unpaid Invoice LTD Company - Norwegian Tax

[computerbarry]

Hi all

I signed a contract with a UK limited company (IT agency) to do some work in Norway. I've basically been working in Norway 4 half months on and off, invoices have always been paid in full until my last invoice which should have been paid last week. Still waiting.

Their response is that another umbrella company from denmark have taken the taxes at source and they can't pay me. The invoice is between myself LTD company and another UK LTD company (the agency) surely this is not my problem and its their duty to pay me? Is this even legal?

I understand Norway has a strict tax policy and contractors pay 28% but I'm working as a UK company and even then, they have no right to take any tax from my invoice without my permission. Its my obligation to pay the taxes at the end of the year else I'll be paying tax both in Norway and the UK.

Any information advice much appreciated,
Thanks CB

[northernladuk]

I guess being a UK agency then Opt In/Out status is still valid. Did you opt in or out when you started the contract?

[computerbarry]

being a UK agency then Opt In/Out status is still valid

so what does this mean? I don't think I opted in or out, gut feeling maybe out.

Thanks, CB

update: for the record I have it in writing in an email...

"You will paid the full amount we don’t deduct tax from you"

[jmo21]

Their response is that another umbrella company from denmark have taken the taxes at source and they can't pay me.

Where do the danish company come in? were you aware of them before? do your agency invoice them? Why are they suddenly in the chain?

All questions only you and the the agency can answer.

[northernladuk]

so what does this mean? I don't think I opted in or out, gut feeling maybe out.

Thanks, CB

update: for the record I have it in writing in an email...

"You will paid the full amount we don’t deduct tax from you"

If you have not opted out the agency is obliged to pay if you have a signed timesheet regardless of what the complications are between him and the client etc...

http://forums.contractoruk.com/busin...-2003-act.html

[computerbarry]

The Danish company are the umbrella company who had the work with the norwegian client. I was working with another UK guy for a couple of months who was working directly with the Danish company as a PAYE, he was getting taxed every month at source.

I was working through my LTD company working through the LTD company in discussion and getting payed in full. Only now at the end they have taken all the tax they say I owe and deducted from the invoice, hence the UK company telling me they can't pay me.

?

I've basically worked in Norway for the last month for nothing.
It still boils down to, is it a legal requirement for them to pay me?

[SueEllen]

The Danish company are the umbrella company who had the work with the norwegian client. I was working with another UK guy for a couple of months who was working directly with the Danish company as a PAYE, he was getting taxed every month at source.

I was working through my LTD company working through the LTD company in discussion and getting payed in full. Only now at the end they have taken all the tax they say I owe and deducted from the invoice, hence the UK company telling me they can't pay me.

?

I've basically worked in Norway for the last month for nothing.
It still boils down to, is it a legal requirement for them to pay me?

Your post is confusing what has the Danish company got to do with anything?

If you are working directly through the agency then follow the Dunning (use search on here) process to get your money and don't bother communicating any more with the agency by telephone as you can't use it as evidence if you do end up going to court.

Also don't worry about the opt-in/opt-out as soon as the agency realises you are going to court they will have to give a proper reason why they can't pay you.

[DirtyDog]

Their response is that another umbrella company from denmark have taken the taxes at source and they can't pay me. The invoice is between myself LTD company and another UK LTD company (the agency) surely this is not my problem and its their duty to pay me? Is this even legal?

If you were working overseas, then what does the local legislation say? Did you fall under Norwegian tax at all? What is the exact chain between you and the client - if the Danish company aren't meant to be in the chain, then why are they getting involved?

I understand Norway has a strict tax policy and contractors pay 28% but I'm working as a UK company and even then, they have no right to take any tax from my invoice without my permission.

Are you certain that they can't do that?

[SueEllen]

If you were working overseas, then what does the local legislation say? Did you fall under Norwegian tax at all? What is the exact chain between you and the client - if the Danish company aren't meant to be in the chain, then why are they getting involved?

It doesn't matter what country you are working in.

What matters is legal jurisdiction the contract states applies.

So if I work in Timbuktu but the contract states the laws of England apply to it, then I any disputes I have go under English law.

[DirtyDog]

It doesn't matter what country you are working in.

What matters is legal jurisdiction the contract states applies.

So if I work in Timbuktu but the contract states the laws of England apply to it, then I any disputes I have go under English law.

If there is a legitimate tax bill to be paid, and the operating laws of the country allow for the tax to be claimed this way, then are you suggesting that just by having an English contract that makes it illegal for that to happen?