Self employed contract

[sascha410]

I would highly appreciate some input information advice experiences or any other useful piece of information on this subject.
I can get the work contract as a (permanent) Freelance Pilot in a smaller company where only requirement is to register my “company” in any EU country.
Where to go, what are pit falls, drawbacks, advantages, if the Gross is e.g. 10000 what will Nett than be (I know, it all depend but just a rough idea)
Thank you for your time…

[Dufo]

It depends on the country where your business is registered and if there is a treaty for prevention of double taxation between your tax residence and country where your business is based.


Roughly you pay between 5-20% of tax, plus all the costs of running the business and social, pension and health contributions.

[jayc004]

I would be interested to know what you mean by "(permanent) freelance".
If you are meaning that a company is offering you a job, but you must set yourself up as a company to handle your own tax (as per Ryanair), I would be very careful.
The different tax authorities in the EU are getting very upset about this, and in the UK you will have big problems with IR35. Basically, if all of your income comes from one place, you are classed as being employed by that place, and therefore are operating an illegal company from the point of tax evasion.

If you are operating under a lot of zero hour contracts, and can pick and choose the days you want to work, and with who you want to work (i.e. through a number of different agencies), then you can expect to pay as little as 0% personal tax, and 20% company tax.

I would strongly suggest you talk to an accountant, and not rely on pprune for tax advise!

[sascha410]

Thank you for trying to clarify it for me.
004 your assumption is correct. As I said it, it is small company in Western EU. I can get my residence both in EU and outside of it, but company require that I establish my own company within EU.
Honestly I do not have any idea how to handle this but I am very interested and willing to learn.
Some pilots were getting payed through agency, I believe from Channel Islands avoiding TAX but paying for services.

[Chronus]

It is not just tax. Here in the UK there is also NIC involved. I can detect a cry for help in the message, sort of a PAN. I would suggest you consult an accountant who has had experience in precisely such a matter and within the aviation industry, and do not allow the matter to develop into a MAYDAY. The sort of an accountant you need is one who has had a great deal of grass roots level aviation experience. One who preferably is or was once a pilot. The number of days for any kind of tax dodging are dwindling fast. Not just here in the UK alone, but everywhere where there is some kind of law and order.

[sascha410]

Haha..Thanks Chronus. I do have a plan B and C so it is not that urgent. But there is opportunity out there and I am trying to research a bit.
Any addresses, any names, contact details of the qualified and suitable accountants?

[latecoere240]

If it can help, it can give an idea :
Best Countries to be Self-Employed in Europe 2016 - Value Nomad (http://valuenomad.com/best-countries-to-be-self-employed-europe-2016/)

[sascha410]

Thank you latecore240...interesting, Romania, Cyprus...Montenegro however geographically in EU not in The EU. But thanks useful info.

[sascha410]

Does anyone know anything about those people (it is closed now) but something similar:
M&M aviation financial services .
Trunity house Cambridge park.
Cambridge
Friend of my was getting paid through them couple of years back and he was only paying for "services" with no tax. It worked well for him but his company ceased opperation before those guys closed down.

[ELondonPax]

HMRC in UK to step up investigation of "pretend" self employment.
https://www.theguardian.com/politics/2016/oct/20/hmrc-launch-crackdown-gig-economy-firms-agency-self-employed-staff