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Umberella company for Luxembourg IT contract

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    Umberella company for Luxembourg IT contract

    Hi everyone.
    I have a potential contract for Luxembourg, wfh in the UK until covid situation changes.

    I had a psc, but dissolved it and my last UK contract was umbrella.

    I have a quote from a Lux umbrella but their margin is 8% compared to paystream taking less than 1 pc in my previous contract. All in all they are quoting 29% before any income tax, including a mandatory 8% govt pension which I do not need. I believe I will pay 40pc tax in UK for the remainder of the year on the remain 71pc so not very attractive.

    I got a quote from a company called Bradford Jacobs for a scheme similar to a psc with a basic salary and dividend payments from shares I would be issued. All taxes would be paid in Luxembourg first but need to be declared as foreign earnings in the UK is my understanding.

    I know such a scheme might not be a good idea in the UK. I wondered if anyone had any experiences or knowledge about how viable it is in EU? Would it be open to a challenge in the uk when I declare?

    Or anyone know another option such as a UK umbrella that can accept euros?

    Regards,

    Joe

    #2
    You have a problem that you need to split into 2 bits

    For your WFH work in the UK you need a UK umbrella who will accept Euros - I know Clarity does so speak to Lucy next week.

    When you start work in Luxemburg you then need a local umbrella for that work and will be paying tax in Luxemburg not the UK. You shouldn't then need to pay UK tax as tax credits should resolve the issue.
    merely at clientco for the entertainment

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      #3
      Originally posted by Joeo View Post
      Or anyone know another option such as a UK umbrella that can accept euros?
      as long as you are tax resident here and as you said working from home, then we can help. Drop me a message if you'd like me to talk you through things.

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