Working in Italy and for a UK based Business - Tax Advice
#1
Just Joined
Thread Starter
Joined: Dec 2017
Posts: 19
Working in Italy and for a UK based Business - Tax Advice
Dear British Expats!
I am glad to have found this group and do hope that you will be able to help me and I you (if needs be).
I went to see a commercialista this morning and he has made me more confused than I was before seeing him.
I am a British Citizen and I am moving permanently to Italy and shall therefore become an Italian resident.
My income shall come from two sources:
1) A 'Contratto di Collaborazione' for part-time work that I shall be doing in Italy
2) Work for a limited company that I have set up in the UK. I am working for myself and shall be invoicing one company directly for payment. They shall be paying me into a UK business bank account.
Can someone please simply explain to me how does it work with tax? What would be my best solution?
Do I have to pay taxes in Italy on both incomes or can I potentially pay taxes separately?
From my UK business bank account I will need to pay out business expenses e.g. flights, travel, stationery, electronic goods etc. I also know that I will have to pay corporation tax.
The accountant today made me so confused and made me feel like an absolute idiot.
I refuse to believe that no one else living in Italy works for companies based in the UK and abroad and what I am planning to do is so complicated.
I do hope my fellow countrymen shall be able to assist me in giving me clear and constructive advice
I am glad to have found this group and do hope that you will be able to help me and I you (if needs be).
I went to see a commercialista this morning and he has made me more confused than I was before seeing him.
I am a British Citizen and I am moving permanently to Italy and shall therefore become an Italian resident.
My income shall come from two sources:
1) A 'Contratto di Collaborazione' for part-time work that I shall be doing in Italy
2) Work for a limited company that I have set up in the UK. I am working for myself and shall be invoicing one company directly for payment. They shall be paying me into a UK business bank account.
Can someone please simply explain to me how does it work with tax? What would be my best solution?
Do I have to pay taxes in Italy on both incomes or can I potentially pay taxes separately?
From my UK business bank account I will need to pay out business expenses e.g. flights, travel, stationery, electronic goods etc. I also know that I will have to pay corporation tax.
The accountant today made me so confused and made me feel like an absolute idiot.
I refuse to believe that no one else living in Italy works for companies based in the UK and abroad and what I am planning to do is so complicated.
I do hope my fellow countrymen shall be able to assist me in giving me clear and constructive advice
#2
Lost in BE Cyberspace
Joined: Jan 2012
Location: Dépt 61
Posts: 5,254
Re: Working in Italy and for a UK based Business - Tax Advice
Which is it going to be?
You might find this helpful https://europa.eu/youreurope/citizen...s/index_en.htm
#3
Just Joined
Thread Starter
Joined: Dec 2017
Posts: 19
Re: Working in Italy and for a UK based Business - Tax Advice
Hello Euro trash,
I have set up the company myself. I am working on a self-employed basis.
I am a solicitor. I shall be seeing clients in the UK, representing them in court in the UK. Ultimately, preparatory work would be done in Italy.
Does me being self-employed improve things for me?
I have set up the company myself. I am working on a self-employed basis.
I am a solicitor. I shall be seeing clients in the UK, representing them in court in the UK. Ultimately, preparatory work would be done in Italy.
Does me being self-employed improve things for me?
#4
Lost in BE Cyberspace
Joined: Jan 2012
Location: Dépt 61
Posts: 5,254
Re: Working in Italy and for a UK based Business - Tax Advice
I think you might have a problem here. It sounds as if you've set up a ltd co of which you're the sole director, and you want to then set yourself up separately as a self-employed professional to provide services to your own company. Is that what you were intending to do?
I don't think this is allowed. I had a quick google and this is the first site that came up, which is an accountants that I've never heard of so you need to look into it more carefully, but they are saying exactly what I always thought which is: "A director cannot invoice his own company for his services on a self employed basis (with very limited exceptions). The director must be paid by salary, or if a shareholder then also by dividends. This is regardless of the relationship between you, your company and your company’s client."
https://www.greenaccountancy.com/res...faqs/employee/
I don't think this is allowed. I had a quick google and this is the first site that came up, which is an accountants that I've never heard of so you need to look into it more carefully, but they are saying exactly what I always thought which is: "A director cannot invoice his own company for his services on a self employed basis (with very limited exceptions). The director must be paid by salary, or if a shareholder then also by dividends. This is regardless of the relationship between you, your company and your company’s client."
https://www.greenaccountancy.com/res...faqs/employee/