Working in Finland for a UK Agency

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Jason
Posts: 163
Joined: Mon Oct 13, 2003 9:04 am
Location: Järvenpää

Working in Finland for a UK Agency

Post by Jason » Tue Mar 23, 2004 12:22 pm

Hi all. Just a quick question that I am sure will not have a simple answer but I'll try.

It looks like I am about to be offered a fantastic contract job in Finland. I am being placed in the role by a UK Contracting Company (IT Contractor company). That company will be being paid by the Finnish company and then they will pay me. The question is, do I pay tax in Finland or in England. I know which I would prefer but I am not sure if that is legal.

I will be doing the work in Finland/ Sweden/ Norway/ Denmark/ Baltic States and Russia over a period of 3 - 4 years.

I already live in Finland but work in the UK and pay tax there. I am currently a permanent employee in the UK so all is ok currently. But I am now going contracting so I guess it will all change.

Should I set up a company in Finland, England or somewhere like Guernsey? What I want to make sure about is that I do not "upset" the Finnish Taxation Department.

Can someone who has the knowledge please give me some advice or direct me the the most apporpriate places to find the information.

Thanks in advance for all your help.

Regards

Jason

Working in Finland for a UK Agency

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Miss Jones
Posts: 136
Joined: Tue Dec 23, 2003 5:30 pm

Re: Working in Finland for a UK Agency

Post by Miss Jones » Tue Mar 23, 2004 1:53 pm

Jason wrote:
Should I set up a company in Finland, England or somewhere like Guernsey? What I want to make sure about is that I do not "upset" the Finnish Taxation Department.



Isle of Man is a good bet if you can swing it. Congratualtions on the contract. :)
Because something is happening here, but you don't know what it is, do you, Mister Jones?


Jason
Posts: 163
Joined: Mon Oct 13, 2003 9:04 am
Location: Järvenpää

Post by Jason » Tue Mar 23, 2004 2:42 pm

Thanks for the advice. The problem I have which I really should have said in the first place is I am not an EU citizen. I am married to a Finnish national so I qualify to work in Finland. What I do not understand is, can I actually own a company in England if I do not have a UK residence permit? I am currently on a 5 year work permit so this will finish.

I guess I need to speak to a lawyer in the UK.

Any advice will be appreciated.

Cheers

Jason


dusty_bin
Posts: 2208
Joined: Sun May 04, 2003 10:56 pm
Location: Estonia
Contact:

Post by dusty_bin » Tue Mar 23, 2004 4:58 pm

Anybody can have a company in Britain. There are no nationality restrictions. By company, I assume that you will incorporate a limited company, this will mean that you have a business address, a company secretary and that you file accounts. You can arrange these things through the internet, just do a Google search on 'company formation off the shelf'. Don't forget though , that in the UK just as in Finland, if you are working for just one firm, then it is almost certain that you will be regarded as that firm's employee. In that case you will be liable to PAYE and NI. There are some systems for contractors, but they are onerous and you have to be able to demonstrate that you are genuinely self employed.
Essentially, you will almost certainly find that you will be better off as an employee than self-employed.

There are some simple tests for being an employee...
Will you be working with the firm's equipment?
Will you take holidays at the same time and in the same manner as other employees?
What happens if you decide not to work for the firm any longer?

I dont remember all the details, quite a while since I dealt with this stuff.

Just a though though, if you are not British, or Finnish, but are working (creating the value) in Finland and as is likely, one tax authority or the other will deem you an employee, you will probably end up paying tax in Finland.


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