TAX Advice - Freelancer working remotely from Italy for the UK
I am a remote freelancer currently in in the UK and I have been running my Limited (VAT registered) company in the UK for around 10 months. There is just myself at the company and I have everything running as I would like.
Please find come notes / thoughts below of what I am trying to achieve:
- I don't want to avoid TAX in either the UK or Italy, I feel strongly about paying my fair share in the countries I live in. Having said that I would not mind being less TAX efficient if it makes my live and my clients lives simpler. Though being TAX'ed twice would be a bit of an issue.
- I have the setup I like now, I manage my UK company using freeagent.com and it is setup and very simple for me. I would like to retain this if possible.
- I will work for clients mainly in remotely in the UK and invoice in GBP. Ideally I would like to invoice through my existing UK company in GBP. My clients are setup / contracts signed and it would be much simpler not to have to make them bill to an Italian company in EUR.
- Ideally I would like to keep the UK company as this is just easier. My one idea was to keep this company and setup an Italian company who's only client is my UK company then I just invoice that company every quarter and then pay TAX on that amount in Italy?
- Or someone said I might just be able to pay corporation TAX in the UK and personal TAX in Italy. Though I don't know, and it is important for me to be legal.
- Again the above are just ideas, if I need to setup a sole Italian company then I will need to do that. If this is the case, can I still use freeagent.com to manage my invoices?
- Dear FreelanceUK,
I wondered if you could also give some advice on my situation which is a little similar to mcfarlanealex?
My partner (who is italian) will be moving to Italy for work and I will also be accompanying him there. I work remotely and am currently registered as self employed in the UK (I am a UK citizen).
Please could you kindly advise me on what I should do in regards to tax once in Italy? My client(s) are UK based, but I would be working remotely in Italy.
- Thanks for the query Elizabeth 65B; interesting times are upon you by the sounds of things!
And sure, FreelanceUK arranged for an expert to answer your question -- I hope the following's helpful:
Moore News Ltd - expert care for your editorial needs.
I have a question that is quite similar to the original one.
I have recently moved to Italy, and I will shortly be changing my work contract to a freelance contract. From what I understand, using a Partita IVA will not be very economical for me - plenty of people have told that you need to earn close to 60,000 EUR per year before the Partita IVA becomes the best option.
My question is, what other options are available as a tax status for freelancers living in Italy? My jobs will mainly be proofreading, sub-editing or writing sports articles or match reports, or commentating on sporting events. I'm fairly sure this can be classed as journalism (for tax purposes at least), and I understand there is slightly different tax regulations if you have a journalists' contract. At the moment I haven't been able to find any details of this.
If Partita IVA is the best way then I'm happy to set it up, but I've been slightly put off by some horror stories I've been told!
Apologies for replying to quite an old thread but I am in need of some fairly urgent advice.
I am currently employed as a Contract Administrator, working from home, by a company who only operates in the UK. They are an accommodating company, happy to embrace innovative ideas, evidenced by my being the first (and I think still the only) employee to work from home.
I am buying a house in Italy and intend to be resident by 29/03/19 (you can guess why).
I am looking to continue working for my employer as now with the only change being I will be living in Italy and no longer an employee of my current employer. Whilst I appreciate this sounds simple enough I am aware of tax implications, not to mention the “Brexit effect”!
I have thought about being self employed in Italy and invoicing my current employer in Sterling who would pay the invoice directly into a currency exchange account, I would take any hit on exchange rate, I would pay tax in Italy as self employed or some other option.
My initial thoughts are that I would end my employment contract with my current employer and hence save them employers costs as they would simply be paying invoices calculated to my original net monthly pay.
I guess the advice I am looking for is:
a) is what I am proposing/thinking even possible?
b) would my former employer have any tax liability under my proposed approach?
c) what is the best tax option for me as an Italian resident assuming my proposed approach is doable?
d) if my proposed approach is not doable, what alternative approaches are there, preferably ones which save my current employer £ (I have to sell this idea to them).
Many thanks for considering the above and I look forward to some positive advice.
- Hello Paul,
Here are some articles/cotent your may find relevant. Also, I recommend you either seek advice from the HMRC or a freelancer accoutnant.
Also, check out the other articles linked in the thread.
In relation to above threads. I am a shareholder of a number of uk companies and am also the M.D./employee from said companies. I also have a management company (sole shareholder)that invoices these companies management fees and pays dividends to myself. From multiple sources of income I currently pay uk taxes. I am commuting to Austria at weekends where my wife currently works and we rent a property. I’m told that I pay uk tax as I have at least two ties to the uk and spend more than 90 midnights in the uk. Firstly is this correct?
Secondly, if I was to move to Italy and my wife and I buy a house in Italy becoming (I assume) Italian residents and I work for my UK companies form home in Italy and of course including commuting, upholding the 90 midnights, am I liable to Italian taxes as a resident. Or thirdly if I commute to the uk for my 90 days and my wife stays home, how are the taxes in that situation.
I am a uk passport holder and my wife an Italian passport holder. I will soon be applying for Italian passport thanks to brexit!
Im happy paying my tax bill, I just don’t want it to double!
Any help would be grateful.
- If you take money out of your Sole proprietorship account for personal rather than business-related purposes, then that money become income to you, and is taxable at whatever your prevailing tax rate ends up being when you file your annual or quarterly tax return.
You need a new bank person and a new accountant, since neither seem interested in doing the job you pay them for
- Hi there,
I am Italian and I lived in London for 5 years. In April 2018 I moved back to Italy and I kept my job, starting work remotely for London based company; they offered me to keep my contract as it was when I was based in London and for me was fine.
Now they offered me to work as a freelance and here is where I need your help:
_ Should I pay my taxes in UK or in Italy or in both countries as I did until now as an employee?
_ My big doubt is: if I have to pay my taxes just in Italy as a freelancer, the taxes will be much higher than if I still was in London?
_ How much are the taxes if my net will be £2000?
Please let me know.
- Hi Alessio, FreelanceUK arranged for an expert to answer a version of your question, on the FreelanceUK front-page!
Moore News Ltd - expert care for your editorial needs.