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Does anyone know If you can register as self employed in the UK while in poland


mw78 3 | 29  
29 Sep 2009 /  #1
Does anyone know If you can register as self employed in the UK while living in Poland? So that you pay National Insurance to the UK and therefore become exempt from paying ZUS.

I have heard of Polish people doing something along these lines. Any Brits doing the same? I've been told it is much cheaper than paying your own ZUS when self employed.
dnz 17 | 710  
29 Sep 2009 /  #2
It depends what line of business you are in and how you want to operate, if you are in a type of business which requires you to invoice your clients then you could set up a UK LTD company and do it that way but you will be paid in sterling or euros.

I do something along these lines
OP mw78 3 | 29  
29 Sep 2009 /  #3
Interesting, I really want to see if it's possible or worthwhile.

Basically the idea was to just find a cheap way to work as a native speaker over here.

I'm asking because, as you know, many English schools prefer to employ self employed native speakers so they don't have to pay ZUS (or in effect pay your ZUS indirectly at the lower self employed rate).

My plan was to register myself self employed in the UK as a freelance English teacher but do all my teaching in Poland, whilst living here at the same time.

I've been told this will be considerably cheaper than paying my own ZUS.

So are you saying anyone I taught for would have to pay me in euros?
dnz 17 | 710  
29 Sep 2009 /  #4
In that case it could be a viable option, You wouldn't have to accept payment in euros but it might be best due to the exchange rate fluctuation.
OP mw78 3 | 29  
29 Sep 2009 /  #5
Thanks Dnz,

will go to HM customs and revenue website to find out more.
delphiandomine 88 | 18,131  
29 Sep 2009 /  #6
My plan was to register myself self employed in the UK as a freelance English teacher but do all my teaching in Poland, whilst living here at the same time.

The problem is that it's essentially tax evasion - you won't be resident in the UK for tax purposes (the 185 day rule would be applied here) but would be resident in Poland.

Yep, it is cheaper, especially with the tax brackets - but you would be running a hell of a risk, especially as a UK business invoicing Polish companies for teaching (or any sort of language services) would set off a red flag if anyone got audited.
OP mw78 3 | 29  
29 Sep 2009 /  #7
I expect your right delphi. I'm a complete newbie in these areas.

I need to read up on this 185 day rule.

I was thinking I could put in a tax claim each year as you're supposed to. So I would still be committing tax evasion?

The only reason I ask is a Polish friend of mine did something similar, and thought I should do the same. I was told many Poles do this from various foreign countries as a way to avoid paying ZUS.

hmrc.gov.uk/cnr/ca3837-info.htm

oh well
delphiandomine 88 | 18,131  
29 Sep 2009 /  #8
I was thinking I could put in a tax claim each year as you're supposed to. So I would still be committing tax evasion?

Now...that's an interesting point. If you were paid through a UK limited company and were receiving nothing but dividends from the company (which you'd be free to pay as you want, I think?), you could just pay tax on the dividend income and have no liability for ZUS. As far as I remeber, dividend income is a flat 19% - and you wouldn't be paying any tax in the UK.

I think if you were self employed in the UK and yet residing in Poland, they'd have you with the lack of paying ZUS. But if you're simply the 100% shareholder and director of a limited company in the UK, as long as the company pays UK taxes and you tell the Polish taxman that you earnt x amount in dividend income, there shouldn't be an issue - I think.

Might be worth finding a friendly English speaking accountant and see what they advise?

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