Working in Belgium, tax rules
Discussion
Hi All,
just landed my first European contract. At least 9 months in Belgium and looking forward to that.
A friend is currently over there and is working through some company/scheme which sees him taxed at source and claims that way he has to pay nothing back in the UK.
I am more cautious about these things, anything that sounds like a scheme triggers alarm bells. Everything I have read suggests as I wont be a Belgian resident that I would pay tax in Belgium and then complete a UK self-assessment where I then enter how much tax I have paid in Belgium and it is then offset against the UK tax.
Is this right?
Thanks
just landed my first European contract. At least 9 months in Belgium and looking forward to that.
A friend is currently over there and is working through some company/scheme which sees him taxed at source and claims that way he has to pay nothing back in the UK.
I am more cautious about these things, anything that sounds like a scheme triggers alarm bells. Everything I have read suggests as I wont be a Belgian resident that I would pay tax in Belgium and then complete a UK self-assessment where I then enter how much tax I have paid in Belgium and it is then offset against the UK tax.
Is this right?
Thanks
That sounds correct. Currently looking at a similar situation, in the Netherlands. Fortunately the potential employer has retained the services of a firm that specialises in these sorts of things, so I'm hoping they will be able to shed some light on the realities of it all on Monday. Following with interest.
Hopefully they will forego the 10% difference, friend has gone through an agency that sorts it all out for you - tax at source but claiming no need to tell HMRC. That doesn't seem correct but at the same time I don't want to be tens of thousands out of pocket, be good to hear what your outcome is and congrats on your job!
Well, I can tell you that it won't hurt to find a company that can walk you through it. Essentially, what you said in the OP is correct.
If you are outside of the UK for more than 183 days, you will not be taxed in the UK. You will pay Belgian taxes, and then declare this in your self-assessment in the UK. Check and see if there is a reduction available in Belgium for expats, in the NL its 30% off. It is also possible to split your income between countries, depending on the number of days worked in each.
Fortunately, the company I spoke to also does the payroll for the new employer, so they will basically sort it all out, pay the salary direct into my UK account and make sure I'm legal in both places. Reassuring.
If you are outside of the UK for more than 183 days, you will not be taxed in the UK. You will pay Belgian taxes, and then declare this in your self-assessment in the UK. Check and see if there is a reduction available in Belgium for expats, in the NL its 30% off. It is also possible to split your income between countries, depending on the number of days worked in each.
Fortunately, the company I spoke to also does the payroll for the new employer, so they will basically sort it all out, pay the salary direct into my UK account and make sure I'm legal in both places. Reassuring.
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff