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True or False? Illegal Workers (cash jobs)

True or False? Illegal Workers (cash jobs)

Old May 25th 2011, 11:12 am
  #16  
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Default Re: True or False? Illegal Workers (cash jobs)

Shell companies are perfectly legal in the UK. It is a system where the "employee" works for the shell company as a self employed person. The client company pays the shell company who deduct the appropriate taxes before paying the employee.

http://www.companiesmadesimple.com/s...d-company.html

Your friend may have misunderstood and he may be required to establish a shelf company? This is very simple, see here > http://www.spanish-companies.com/she...nies-spain.htm
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Old May 25th 2011, 8:16 pm
  #17  
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Default Re: True or False? Illegal Workers (cash jobs)

Originally Posted by missile
Shell companies are perfectly legal in the UK. It is a system where the "employee" works for the shell company as a self employed person. The client company pays the shell company who deduct the appropriate taxes before paying the employee.

http://www.companiesmadesimple.com/s...d-company.html

Your friend may have misunderstood and he may be required to establish a shelf company? This is very simple, see here > http://www.spanish-companies.com/she...nies-spain.htm
When I was there you were not allowed to be self employed if you only had one customer, they felt that you should be an employee of the client.
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Old May 25th 2011, 8:24 pm
  #18  
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Default Re: True or False? Illegal Workers (cash jobs)

Originally Posted by jdr
When I was there you were not allowed to be self employed if you only had one customer, they felt that you should be an employee of the client.
That is what I think too.
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Old May 25th 2011, 8:26 pm
  #19  
 
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Default Re: True or False? Illegal Workers (cash jobs)

Originally Posted by jdr
When I was there you were not allowed to be self employed if you only had one customer, they felt that you should be an employee of the client.
That's quite correct JDR. It happened a lot with "consultants" who only had one client.

HMRC would force the company to be responsible for all their taxes.
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Old May 26th 2011, 7:36 am
  #20  
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Default Re: True or False? Illegal Workers (cash jobs)

Originally Posted by missile
Shell companies are perfectly legal in the UK. It is a system where the "employee" works for the shell company as a self employed person. The client company pays the shell company who deduct the appropriate taxes before paying the employee.

http://www.companiesmadesimple.com/s...d-company.html

Your friend may have misunderstood and he may be required to establish a shelf company? This is very simple, see here > http://www.spanish-companies.com/she...nies-spain.htm
Hmm then that looks like a scam to sell a "shelf company". (I'm so suspicious!;D)
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Old May 26th 2011, 7:59 am
  #21  
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Default Re: True or False? Illegal Workers (cash jobs)

Originally Posted by whitelinen
Many choose to pay the 2.50 per week class 2 contributions in the UK, thus ensuring a UK pension.
I wouldn't relish a visit from HMRC after several years of doing that yet declaring no income. At best you'd be hit with an estimated tax bill for those years...ouch!
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Old May 26th 2011, 9:03 am
  #22  
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Default Re: True or False? Illegal Workers (cash jobs)

When taxes are too high in a country, or the collection system is too harsh, a black economy thrives. It's very hard for a small business or a self employed person to thrive in Spain, I don't know the percentages, in fact there can't be any reliable ones, but all the people I know here in Spain try their best to beat the system.
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Old May 26th 2011, 11:00 am
  #23  
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Default Re: True or False? Illegal Workers (cash jobs)

A black money thrives for no other reason than greed and selfishness.

Nothing whatsoever to do with taxes.

The Spanish only care for themselves...me me me. If they can get away with paying no tax, it's a pat on the back.

The so called "Crisis" is the current excuse for not paying taxes. People are even quite open about it on official business......"There's a crisis. Why would I pay tax?!"

Just like the unemployment statistics.....doesn't give a real indication of what's happening in the country. Many have opted out of legal employment for the black market, cash in hand method.

Impossible to police, as it's endemic.
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Old May 26th 2011, 11:35 am
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Default Re: True or False? Illegal Workers (cash jobs)

Originally Posted by HBG
When taxes are too high in a country, or the collection system is too harsh, a black economy thrives. It's very hard for a small business or a self employed person to thrive in Spain, I don't know the percentages, in fact there can't be any reliable ones, but all the people I know here in Spain try their best to beat the system.
I agree with you. That's The main reason many can't even start working. Nearly 50% of my income from sales within the EU goes in IVA and income tax. IVA of course is charged on sales. Not sales minus costs! I like it better when I don't have to charge IVA (i.e. to customers in the rest of the world) At least I don't have to save it up and give it to the tax man when I'm counting every penny on the other side! I'd prefer it if we were all completely legal and all paying equally. That way we'd all have a voice and speak out when taxes are too high. Now the weedy voice of the honest will never get heard because everybody is keeping shushhhhhhhh.
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Old May 26th 2011, 12:24 pm
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Default Re: True or False? Illegal Workers (cash jobs)

Originally Posted by avocados
A black money thrives for no other reason than greed and selfishness.

Nothing whatsoever to do with taxes.

The Spanish only care for themselves...me me me. If they can get away with paying no tax, it's a pat on the back.

The so called "Crisis" is the current excuse for not paying taxes. People are even quite open about it on official business......"There's a crisis. Why would I pay tax?!"

Just like the unemployment statistics.....doesn't give a real indication of what's happening in the country. Many have opted out of legal employment for the black market, cash in hand method.

Impossible to police, as it's endemic.
You really have a way with words, I have been looking over your posts and just wondered what has happened to make you so bitter.

You hate everything, eveyone on the forum is treated with the same attitude, such a know all, what are you doing here in Spain?
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Old May 26th 2011, 12:25 pm
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Default Re: True or False? Illegal Workers (cash jobs)

Originally Posted by angiescarr
I agree with you. That's The main reason many can't even start working. Nearly 50% of my income from sales within the EU goes in IVA and income tax. IVA of course is charged on sales. Not sales minus costs! I like it better when I don't have to charge IVA (i.e. to customers in the rest of the world) At least I don't have to save it up and give it to the tax man when I'm counting every penny on the other side! I'd prefer it if we were all completely legal and all paying equally. That way we'd all have a voice and speak out when taxes are too high. Now the weedy voice of the honest will never get heard because everybody is keeping shushhhhhhhh.
Very true, Angie, there should at least be a VAT threshold like in the UK, and then the smaller business would have a fighting chance.
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Old May 26th 2011, 3:44 pm
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Default Re: True or False? Illegal Workers (cash jobs)

Originally Posted by JLFS
You really have a way with words, I have been looking over your posts and just wondered what has happened to make you so bitter.

You hate everything, eveyone on the forum is treated with the same attitude, such a know all, what are you doing here in Spain?

OK this is getting personal.

So, I am going to step in and get personal.

The poster is very well qualified to answer questions on this forum and has one of the most informative websites regarding tax and other issues that I have seen so far.

Since he has chosen not to take the option of giving a link to it in his signature I am not going to post it.

Suffice it to say that I have quoted information from his site on this forum and many others.
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Old May 26th 2011, 5:57 pm
  #28  
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Default Re: True or False? Illegal Workers (cash jobs)

I'm not a tax expert, far from it, but for many years I've been an employer in Spain, to start with, and I'm still self employed paying autonomo. Both are an absolute minefield, and advice, from the right quarters, is essential. It's the right advice that is the problem, charlatans abound, and many of them are fellow expats.

For me, it's the carrot and the stick. My current Gestor guides me although he thinks I'm mad for declaring what I do declare, but I'm concentrating on the carrot, I can smell it, it's right in front of me - what I currently earn after paying as much of the costs as I have to, is risible, if it was my only source of income I would have to be sitting outside Mercadona with a begging bowl.

But I can see the light at the end of the tunnel, I'm going to get a pension if I carry on for a bit longer, quite a decent one, based on my contributions for at least 15 years.

It's hard, and I'm learning to play the accordion, it earns more than a begging bowl from what I've seen.
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Old May 26th 2011, 7:43 pm
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Default Re: True or False? Illegal Workers (cash jobs)

Originally Posted by HBG
I'm not a tax expert, far from it, but for many years I've been an employer in Spain, to start with, and I'm still self employed paying autonomo. Both are an absolute minefield, and advice, from the right quarters, is essential. It's the right advice that is the problem, charlatans abound, and many of them are fellow expats.

For me, it's the carrot and the stick. My current Gestor guides me although he thinks I'm mad for declaring what I do declare, but I'm concentrating on the carrot, I can smell it, it's right in front of me - what I currently earn after paying as much of the costs as I have to, is risible, if it was my only source of income I would have to be sitting outside Mercadona with a begging bowl.

But I can see the light at the end of the tunnel, I'm going to get a pension if I carry on for a bit longer, quite a decent one, based on my contributions for at least 15 years.
I play blues guitar;-) (At least I did, until I had to sell my beloved Dobro:-( Between us we should be able to manage a bit of Cajun

It's hard, and I'm learning to play the accordion, it earns more than a begging bowl from what I've seen.
I play blues guitar;-) (At least I did, until I had to sell my beloved Dobro:-( )
Between us we should be able to manage a bit of Cajun
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Old May 26th 2011, 7:58 pm
  #30  
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Default Re: True or False? Illegal Workers (cash jobs)

Originally Posted by angiescarr
I play blues guitar;-) (At least I did, until I had to sell my beloved Dobro:-( )
Between us we should be able to manage a bit of Cajun
I am a blues fanatic, post some on youtube and put a link on here.
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