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Old Aug 2nd 2017, 11:17 am   #1
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Default Hungary - UK IT Independent Contract Tax Liability

Hi All

Please i need a help on UK IT contractor tax liability in Hungary. This is my first contract outside UK and I am so confused with mixed statements available over google search.

I am an independent IT contractor(UK citizen) and i have my own limited company in UK. I do all my IT contracts through my UK limited company. Recently i got a IT contract in Hungary through a UK recruitment agency for 5 months and with possible extension of 1 more month.

IT work contract is between UK recruitment agency and my UK limited company and UK recruitment agency is paying amount plus VAT to my UK limited company.

My Questions :

1. What are my tax liabilities in Hungary ?

2. Do i need to pay my taxes both in hungry and UK (I.e. VAT and corporation tax) or only in UK ?

Many thanks for all your Inputs..

KSS
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Old Aug 2nd 2017, 1:16 pm   #2
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Default Re: Hungary - UK IT Independent Contract Tax Liability

Dump the whole lot in the lap of your company's accountant.

But........you are employed by your UK company
your company has a contract for work from another UK company.
You will remain an employee of your UK company and be paid in the UK but will work for a time in another EU location.

Sounds simple!

The temptation would be to keep your head down and say nothing.

The Hungarian company will get their bill for services from the UK recruitment agency which will not reference your company and the amount the agency charge has nothing to do with your company any more than how much your company bill the agency - as the employee you don't need to know this either. So I would suggest that you will remain a UK employed person and that there is a sufficiently long accounting trail that it will never come home.

We run an a (Hungarian) company here which has taken on work and hired staff to do it. There has never been any questions about which staff did what work even though the work done required qualified people e.g architect and translator for government agencies (which require state exams)

But as I said at the top....dump it in the lap of your accountant

By the way you won't have double taxation, it will be either one or the other and you REALLY don't want to get involved with Hungarian bureaucracy if you can avoid it !!
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Old Aug 2nd 2017, 1:33 pm   #3
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Default Re: Hungary - UK IT Independent Contract Tax Liability

Quote:
Originally Posted by Peter_in_Hungary View Post
Dump the whole lot in the lap of your company's accountant.

But........you are employed by your UK company
your company has a contract for work from another UK company.
You will remain an employee of your UK company and be paid in the UK but will work for a time in another EU location.

Sounds simple!

The temptation would be to keep your head down and say nothing.

The Hungarian company will get their bill for services from the UK recruitment agency which will not reference your company and the amount the agency charge has nothing to do with your company any more than how much your company bill the agency - as the employee you don't need to know this either. So I would suggest that you will remain a UK employed person and that there is a sufficiently long accounting trail that it will never come home.

We run an a (Hungarian) company here which has taken on work and hired staff to do it. There has never been any questions about which staff did what work even though the work done required qualified people e.g architect and translator for government agencies (which require state exams)

But as I said at the top....dump it in the lap of your accountant

By the way you won't have double taxation, it will be either one or the other and you REALLY don't want to get involved with Hungarian bureaucracy if you can avoid it !!


Hi Peter

Many thanks for your explanation and help.

Regards
KSS
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