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Old Dec 8th 2017, 2:10 pm   #1
rzm Female
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Default 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
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Old Dec 9th 2017, 11:32 am   #2
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Default Re: Working in Italy and for a UK based Business - Tax Advice

Quote:
Originally Posted by rzm View Post
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.
In the other thread you said
Quote:
Originally Posted by rzm View Post
I shall be working for a UK Ltd company (of which I am the director and only employee)
Being an employee of a company and being a self employed person providing services to clients are two very different things, and it can make a difference to how tax and social security works. If you're self-employed, you and the business are by definition the same entity and the business is based in the country where you yourself are resident, and is subject to that country's rules. If you're an employee, ie on the payroll and the company is responsible for paying towards your social security, then you and the business are separate entities and it is possible for the business to be based in one country with employees living in another.

Which is it going to be?

You might find this helpful https://europa.eu/youreurope/citizen...s/index_en.htm
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Old Dec 9th 2017, 11:38 am   #3
rzm Female
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Default 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?
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Old Dec 9th 2017, 1:46 pm   #4
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Default 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/
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