German Contracting Advice

[Schaefer]

Hello,

I have searched through the forum but I cannot find the specific information I need so I am hoping someone here can advise me.

I have been contracting in Germany (registered as a freelancer with the German tax authorities) for almost 2 years through a UK agency via an umbrella company using German accountants associated with the umbrella company.

Basically, I am not happy with the service provided by the umbrella company and the fees that they charge.

It is my intention to use a German accountant directly and for me to bill the UK Agency myself and get rid of the umbrella company altogether.

However, my UK Agency says that it will only deal with a Limited Company. I have a UK Limited Company, but is it legal to get funds paid to the UK Limited Company bank account and pay only German taxes? Is there another way I can work this?

I hope someone who works in a similar manner or who has had expeinece in thsi area will be able to offer me advise.

Thanks in advance,
Schaefer.

[BlasterBates]

Sounds to me like it is preferable to stay with yor current arrangement.

If you would want to use a Ltd, you would register it in Germany. Your taxes would be paid in Germany and then most likely no further taxes in the UK.

You would need to consult an accountant. Apparently some German companies are set up as Ltd because a Ltd company is less bureacratic than a German GmbH, but taxes are paid in Germany.

What you can't do is run through your Ltd and tax everything in the UK (think equivalent to setting up an Isle of Man co and running your UK business through it and only pay Isle of Man taxes, same thing, it's a no no).

[Schaefer]

Sounds to me like it is preferable to stay with yor current arrangement.

If you would want to use a Ltd, you would register it in Germany. Your taxes would be paid in Germany and then most likely no further taxes in the UK.

You would need to consult an accountant. Apparently some German companies are set up as Ltd because a Ltd company is less bureacratic than a German GmbH, but taxes are paid in Germany.

What you can't do is run through your Ltd and tax everything in the UK (think equivalent to setting up an Isle of Man co and running your UK business through it and only pay Isle of Man taxes, same thing, it's a no no).

Thanks for the feedback BlasterBates - will meet with the German accountant. Cheers.