What is the tax position if I am working overseas but via a UK agency?

What is the tax position if I am working...

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A client has a UK registered limited company.

It has one client, a UK based agency.

The services are delivered in Finland and other EU countries. The client will be based in Finland as it is essential that he is on site.

It is expected that the contract could go on for some time - 8 to 9 months potentially if the contract is extended.

The UK limited company will be invoicing the UK based agency.

What are the tax implications for the UK registered limited company and the personal tax implications for the director of the limited company.

All pointers appreciated!

Thanks.

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By glynisbm
25th Aug 2014 12:46

National Insurance

As far as the National Insurance (NI) side of things go, Finland is classed as part of the European Economic Area (EEA) - see Chapter 4, CWG2 Employers further guide to PAYE & National Insurance, which is available on HMRC website.

The basic rule is that you pay NI in the country where you work.

However, if your client is an employee who normally  works in the UK but is temporarily working in Finland and the work is not expected to last more than 24 months, they would usually carry on being insured in the UK and would pay NI as if they were.

The UK employer should apply for form A1 before the employee leaves the UK.

 As it's all a bit of a minefield, my advice, would be to contact HMRC International Caseworker on 0300 200 3506 or +441912037010 if calling from abroad.

Hope that helps!

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