Non-UK citizen self employed in the UK
Thread poster: Annete
Annete
Bulgaria
Local time: 16:54
English to Bulgarian
Jan 29, 2008

Hi, I am thinking of registering as self-employed in the UK. I live in Bulgaria now, but will be relocating. I have read all about tax registration and NIC contributions and the procedure seems very straightforward, but I am still not clear about tax liabilities for translation services provided to non-UK clients, especially Bulgarian companies. I now have clients in Bulgaria and don't want to lose them because of relocating. Working for them may be my main source of income in the beginning.
Has anyone been in a similar situation - a foreign citizen establishing as self-employed in the UK and working mainly for companies from his native country. Is the self-employed person considered only UK-resident for tax purposes? In this case I guess all I will need to do is issue invoices to my Bulgarian clients and pay tax in the UK. What bothers me is that as a physical person I will still be Bulgarian, receiving income from Bulgarian sources, and I wonder whether this will bring about tax complications. I hope someone can advise me on this ! Thanks!


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Williamson  Identity Verified
United Kingdom
Local time: 14:54
Flemish to English
+ ...
My 2 cents..... Jan 29, 2008

You are a citizen of the E.U. I do not know about Bulgaria if there is free circulation of persons or whether or not the U.K. chose to restrict entrance of the lastest newcommers to the E.U. Your Bulgarian sources EXPORT a service to the UK.
In the UK, you do not need to register for VAT, if you earn less than £65,000 per annum. If you read through the leaflets of HRMC, you will notice that it is not encouraged to register for VAT. If Bulgaria is a high-taxed country with a lot of bureaucracry like France, this might cause a problem for your Bulgarian customers. You simply refer them to HRMC-website and the relevant legislation. You also provide them with your N.I. or registration number of your company, if you prefer to operate as a ltd. One your invoices, you quote the relevant piece of legislation and if requested give your N.I.
Browse in previous postings with regard to the UK.


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Annete
Bulgaria
Local time: 16:54
English to Bulgarian
TOPIC STARTER
Thanks Jan 29, 2008

I'll browse the forum for more information. P.S. Bulgarians have the right to be self-employed in the UK but are still restricted in taking employment.

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Nesrin  Identity Verified
United Kingdom
Local time: 14:54
English to Arabic
+ ...
You pay taxes for the jobs done... Jan 29, 2008

... regardless of your nationality, or where the client is located. A job done for a Bulgarian company is taxed the same way as a job done for a client in the UK or in any other country of the world. Inland Revenue is not concerned with your nationality or the client's location.
At least that's how I've understood the system for the past seven years!


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Annete
Bulgaria
Local time: 16:54
English to Bulgarian
TOPIC STARTER
Thank you for your input, Jan 29, 2008

I understand that I will be taxed in the UK on all my income from services rendered through my self-employed business. I just cannot get rid of the idea that being a Bulgarian, I will have to declare the same income in Bulgaria and will have to ask to be released from paying tax by demonstrating that I pay proper taxes as UK tax resident... Or my physical Bulgarian nationality is a separate "person" from the UK registered self-employed?

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Gillian Searl  Identity Verified
United Kingdom
Local time: 14:54
Member (2004)
German to English
Is Bulgaria a federal state? Jan 29, 2008

Imagine it like this. You currently live in one state in the EU. You are moving to a new state so you register with the authorities in the new state. Or maybe when you move cities within Bulgaria you have to change your registration for tax purposes - or your car registration number (at least you do in Germany). You tell the Bulgarian authorities "I am leaving your jurisdiction on this date" and you tell the British ones "I am entering your jurisdiction on this date". It is all about where you are resident. If you are resident in the UK for more than 6 months in a year you have pay taxes in the UK no matter where your passport was issued.
Hope that helps.
Gillian


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Annete
Bulgaria
Local time: 16:54
English to Bulgarian
TOPIC STARTER
Thank you, Jan 29, 2008

it is much clearer now, looking at things from the perspective of an EU citizen makes is look less complicated )

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LuciaC
United Kingdom
Local time: 14:54
English to Italian
+ ...
Foreign accounts Jan 29, 2008

If you move to the UK (and reside here for over 6 months a year) you will be liable for tax here. You will not be a resident in Bulgaria anymore, i.e. you will have to declare to the Bulgarian authorities that you are moving abroad.

If you are going to keep a current account in Bulgaria, as I imagine, to receive payments from your local clients, you will have to declare the interests you have earned on that account on your UK tax return.


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Annete
Bulgaria
Local time: 16:54
English to Bulgarian
TOPIC STARTER
Thanks, Jan 29, 2008

you are all so kind and helpful

[Edited at 2008-01-29 21:07]


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Annete
Bulgaria
Local time: 16:54
English to Bulgarian
TOPIC STARTER
And what about my first UK invoice, Jan 31, 2008

Will it be OK to issue an invoice to one of my Bulgarian clients and register as self-employed in the UK based on it? Or it would be better to wait till I get an assignment from a UK-based business, meanwhile working by using my status in Bulgaria? Thanks again.

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LINAG
Local time: 16:54
English
regarding bulgarian taxation Oct 24, 2008

in my opinion will be cheapet to enter in bulgaria as a self employer

I'll browse the forum for more information. P.S. Bulgarians have the right to be self-employed in the UK but are still restricted in taking employment. [/quote]

[Edited at 2008-10-24 20:24]


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reg123
English
Owner of BG company in UK Dec 1, 2008

Hi guys,
I am a partner in a company registered in Bulgaria. If that company has a contract for an on-site work with UK company. That means that I have to be in UK in order to accomplish the contract. In such case what will be my status in UK. Am I self-employed or I need a work-permit? And what will be the status of an employee of the Bulgarian company?

Regards!


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Sushan Harshe
India
Local time: 20:24
English to Hindi
+ ...
you are all so kind and helpful Dec 1, 2008

This is one of the topics; I loved to go through. u alll r great !!!

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