Access Financial International SA
 
Newsletter: January 2012
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Access Financial International SA
Why do several of the leading UK umbrella companies and PSC providers refer their foreign business to Acess Financial? In the attached article written by Brooksons Limited the resons why using a UK limited company while working abroad is ill advised are set out clearly.
The common myth is that the UK PSC works abroad for stints up to six months.Well it doesn't and when the end of the six months arrives and you want your contractor to extend the assignment there is a painful threshold to cross or explianing why the advice is now faulty. How much better to encourage your contractors to start the way that they must continue, namely, the lawful way? In other words, start the contractor with a setup that respects the laws in work country as well as those back home. APSCo's members all undertake to do just this. Let AF help you to do just that.
 
 
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Brookson Freedom to Earn
Contracting overseas
The current economic climate and exchange rates make UK contractors a skill bargain for many overseas countries. Brookson has seen this trend developing clearly in its customer base and receive a steady stream of enquiries from existing and new customers seeking advice on how to take advantage of this export opportunity.
Our advice to any contractors in this position is to seek specialist help on the financial implications as there could be some unexpected factors that may influence your decision.
Contracting overseas
In most instances if you currently work in the UK via your own limited company and are considering now working overseas, it is not advisable to operate via your UK limited company whilst working abroad.You should seek an alternative way of working to ensure that you pay the correct amount of tax and National Insurance in the correct country. There may also be non tax related issues such as visas, work permits and health care provisions to consider.
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Tax implications of working overseas Your limited company
Tax implications of working overseas Your limited company
If you use a UK limited company for an overseas contract your UK company is likely to become resident in the country where you are working and you will need to register your company in that country and pay the local taxes which will be due.
There are exceptional circumstances where this may not be the case, for example, if the contract is short term (less than six months) and forms a part of a UK assignment, similar to an overseas secondment.
Your limited company will also continue to have to pay UK tax. As a result your company will be taxed in two countries. In many cases you will be able to claim relief for the tax paid in one country against that due in the other; however, this is dependent on the terms of the double tax treaty between the UK and the country of work.
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Other factors to consider
UK tax returns
Even though you may be working outside of the UK, depending on your personal circumstances you may still need to file UK tax returns. In addition if you are spending time overseas you should notify HMRC of your intended departure and subsequent return.
Overseas tax compliance
You are likely to have to report your own, and possibly your limited company's income in the country in which you are working. We would therefore recommend that you seek specialist local tax advice to ensure you are operating compliantly in the overseas country.
Social Security Contributions
Social Security Contributions
You should consider whether to continue to pay National Insurance Contributions when leaving the UK or pay local Social Security in the country of work. You may find that you no longer have access to certain state benefits if your UK contributions are not kept up to date.
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What are Brookson's recommendations?
What are Brookson's recommendations?
Martin Hesketh, managing director of Brookson Accountancy and Support Services, advises that "as with any change of circumstances we would always recommend that you seek specialist advice before accepting an overseas assignment and that you seek this advice as soon as possible.It is generally not recommended that you use your limited
company for the overseas assignment and that you seek an alternative solution, such as working through a specialist overseas provider. This will ensure that you are paying the correct amount of tax in the country you are working in and do not have to deal with the additional tax payments and tax filing obligations which would arise if you use your UK limited company.
If you intend to use your UK limited company again for a UK assignment you should consider whether you leave your company to operate in "dormant state" until you need it again or whether you should close the company down. This decision will be dependent upon the anticipated length of your overseas contract(s). Your accountant should be able to help you to make this decision."
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Brookson provides accountancy, tax and support services for self employed professionals working in the UK on the umbrella basis, or running their own business either as a sole trader or via their own limited company.
Brookson was launched 15 years ago 'by contractors, for contractors' to provide advice and support to self-employed individuals to ensure they access the benefits they are entitled to,while working compliantly.
Managed by a highly-qualified team of chartered accountants and former contractors, Brookson is committed to providing a first class service to its customers.
For more information on Brookson, please feel free to contact our new business advisors on 0800 230 0213 alternatively you can e-mail newbusinessadvisors@brookson.co.uk
 
 
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Conto Netherlands Conto Netherlands
Our new EUR 165 a month offering for the Netherlands is flying out.
This is the only sensible choice when contracting in The Netherlands. There is absolutely no point in paying Euro 300 and upwards elsewhere for the same product. This offer contains everything!
Conto Netherlands To download
the brochure
click here
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Brochure Downloads
We now have the following new brochures available for download.
To obtain them click below:
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Africa Solutions
Africa Solutions
South Africa;
Kenya, Tanzania;
Ghana
& Nigeria
Asian solutions
Asian solutions
China, Hong Kong, Singapore, Vietnam, Malaysia, Indonesia, Japan and India
EEA & Switzerland Solutions
EEA &
Switzerland
Solutions

All 31 EU and EFTA countries
New India Solutions
New India Solutions
3 new solutions
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China Conto Direct
Conto Direct
The Netherlands
Switzerland Access Innovation
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Please contact us if you need hard copies
 
 
Nyon Office
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Tel:+44 20 7017 3110
Fax:+44 20 7017 3119
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Corner of Ayiou Andreou &
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3036 Limassol

Tel:+357 25 820 640
Fax:+357 25 341 027


Access Financial International S.A. | Chemin Precossy 7 |Case Postale 2123 | NYON | 1260 | Switzerland