You should at least qualify how this thread is different from the multiple previous threads of yours such as viewtopic.php?f=37&t=87751&p=538772#p538772andycheeseman wrote:I'll be moving to Finland, but doing work for a number of UK clients. Film and design work, so a majority of the work will be carried out on UK soil.
Under these circumstances, as long as I note this as foreign income on my Finnish tax return, and pay my social security in the UK; can I continue to operate primarily as a UK sole trader (no ALV, YEL etc)?
I asked a lady on the phone today at Vero and she didn't have an answer.
I don't think toiminimi is complicated. However, I have found that there's less information available for it than for Osakeyhtiö.Rosamunda wrote: Personally I find it so much easier to keep business and "me" separate. My invoicing is through my Oy and if I earn a salary (some places where I work prefer to have me on their payroll) then that goes to my personal account. I think the whole "toiminimi" thing in Finland is quite complicated and not particularly flexible.
This is not correct. It's possible to be considered resident under the legislation of multiple countries when one splits time between multiple countries. The tax treaties have clauses to deal with these situations. It's correct to say that as Finnish tax resident your worldwide personal income is taxable. See the thread I linked for more information.Rosamunda wrote: You seem to be confusing personal taxation with business taxation which makes everything very confusing. As a Finnish resident, your worldwide personal income is taxable here.
If you are resident in Finland then you are de-facto not resident in the UK.
I hadn't considered that I can just file a personal tax return. I thought you had to at least be a toiminimi to do this.Rosamunda wrote:I don't understand why, from the outset (ie your other threads), you are hellbent on having a toiminimi.
In the UK the calculation is different than Finland. Residency isn't just based on time spent in the country. Factors can include family ties, previous residency, available homes, days worked in the UK etc. KPMG's flowchart is useful below to illustrate this.Rosamunda wrote:If you are resident in Finland then you are de-facto not resident in the UK.
I can continue to pay in the UK and use the A1 form to satisfy my Finnish social security arrangement. Doing it this way, I keep all my pension information in one system. It wouldn't have affected my pension entitlement either way (it would have been collected from all the EU 'pots' anyhow).Rosamunda wrote: I see no reason why you would pay NI contributions in the UK. From a welfare point of view (health, unemployment, pensions) you would come under Finnish benefits once you are resident here.
Just out of interest. Is there any exacting terminology we could be using to help define the different 'types' of residency?betelgeuse wrote:It's correct to say that as Finnish tax resident your worldwide personal income is taxable.
No. I'm not particularly concerned about registration. (Though I'll come back to this thread and eat my hat if I need to).Pursuivant wrote:If the trouble is that you need to show "income" in Finland to get registered etc. ?
But think of all those ferry crossings!Pursuivant wrote:I'd establish a company in Estonia actually and "live" in Tallinn
A sole trader in Finland files both a business tax return and a personal tax return. Things that freelancers do in Finland can usually be done both without registering and as a registered sole trader. In the former the employer will take care of withholding taxes and the other bureaucracy. For the latter the bureaucracy is on you personally. The resulting taxation is different for the two models.andycheeseman wrote:I hadn't considered that I can just file a personal tax return. I thought you had to at least be a toiminimi to do this.Rosamunda wrote:I don't understand why, from the outset (ie your other threads), you are hellbent on having a toiminimi.
In Finnish it's easy to differentiate since the different words used in your contexts are clearandycheeseman wrote:Just out of interest. Is there any exacting terminology we could be using to help define the different 'types' of residency?betelgeuse wrote:It's correct to say that as Finnish tax resident your worldwide personal income is taxable.
Type 1 = 'I live here' Resident - "I'm a resident of Helsinki. I love living by the sea."
Type 2 = 'Tax' Resident - "I am tax resident in Finland, so I file tax returns there."
Or is it like you say, just resident and tax resident?
Their answer assumes you are Finnish tax resident.andycheeseman wrote:I have emailed IntoFinland (VERO + KELA) and they have said that I'd just need to fill out my UK income on my pre-filled Finnish personal tax return in April.