Spanish Earnings

GWB · Postby **GWB** » Wed Nov 16, 2005 7:19 am

I have 2 questions to ask

1) I am looking at starting a business based in the UK, where I will be paid commissions by a company in Spain whom I introduce clients to. Can I set myself up as self employed, or would it be more efficient to become a Ltd Co immediately?

2) It is likely some commissions will be allocated to me but held over in Spain to cover any clawbacks. Would the IR here treat that as income?

JasonButcher · Postby **JasonButcher** » Wed Nov 16, 2005 8:42 am

Hi,

1) I would start off as self-employed and then see how it goes. If your profits rise you may wish to form a company.

2) You will be taxed on any money that is held over in Spain.

One further point. If you suffer any Spanish Tax you will be able to deduct this from your UK tax liability.

tom 7000 · Postby **tom 7000** » Fri Nov 18, 2005 1:54 am

Dont forget to tell HMRC that you have started being self employed - you need to fill in form CWF1 - or you can be fined Â£100

You will also have to complete some accounts and fill a tax return in after april.

Keep your eye on the commissions because if they start building up then a Ltd will half your tax bill and so you need to be able to switch to this quickly if you are succesful.

Tom@ttca.co.uk