Belgian Contract
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Manners

Original Poster:

74 posts

267 months

Friday 7th November 2008
quotequote all
Hi all,

Looking for some advice, currently working in Belgium and using an umbrella company to handle the tax side of things.

Been advised by them to register as being self employed in Belgium and pay tax here. If I do this will I need to advise HMRC of the earnings?

The reasoning behind this was that because the duration contract is only 8 weeks. I'll end up paying less tax. Now whilst it all makes sense, can anyone see any tax implications in the UK?

Eric Mc

125,855 posts

296 months

Friday 7th November 2008
quotequote all
Are you still a UK tax resident?

Manners

Original Poster:

74 posts

267 months

Friday 7th November 2008
quotequote all
Hi Eric,

Yes, I'm am a UK tax resident and will be switching to a UK permie role straight after this contract.

Eric Mc

125,855 posts

296 months

Friday 7th November 2008
quotequote all
This means you are technically liable to UK tax on ANY of your income no matter in what country you earn it. Therefore, you would be liable to UK tax on your Belgian earnings. It does not matter whether you are classified as Self Employed in Belgium or not .

If you suffer Belgian tax on this income, the UK tax authorities will give you a tax offset against your ultimate UK tax liability on this income - if there is a balance to pay. If the Belgian tax arising is greater than the UK tax liability, you will not be asked to pay any UK tax.

Manners

Original Poster:

74 posts

267 months

Friday 7th November 2008
quotequote all
Ok thanks for your help Eric.

In your professional opinion what would be the best way to retain as much as I can also being completely above board?

Eric Mc

125,855 posts

296 months

Friday 7th November 2008
quotequote all
Not knowing a single thing about Belgian taxation means that I can't really offer you any advice on that subject.

As a UK tax resident, you will need to contact your local UK tax office so that they will issue you with a tax form for completion at the appropriate time. You will need to complete a Self Assessment tax return and the related "Foreign Income Supplementary Pages".

If this new arrangement starts before 5 April 2009, you will need to complete a 2008/09 Self Assesment tax return which will need to be submitted by 31 October 2009 (if filing on paper) or 31 January 2010 (if filing on line).

Any taxes due to HM Revenue and Customs will need to be paid by 31 January 2010.