Please find below a list of the top 10 most commmonly asked questions by contractors placed by Maximus in Europe.....

1. Why can I not use my own Ltd when working internationally?

It is possible to use your own limited company in any country you wish however you must register this company with the local authorities for tax purposes. Once you have done this your UK ltd company can apply for (on your behalf) an E101 – assuming you are on the payroll of your UK ltd company. You will then need to run a payroll in both country’s (your home country and the country you are working in) deduct from your income the tax for the country you are working in and anything additional owed in your home country along with Social Security paid in your home country (because of the E101).
 - Question answered by Adam Craighill @ TCP Group

2. Where should my taxes and social security be paid?

The guiding principle is that tax and social security should be paid locally unless a dispensation is given by the local authorities (in writing and usually in advance).
Tax: Dispensations are very hard to come by, and you will almost always have to pay tax locally on your locally-sourced income.
Social security: social security must be paid locally unless an E101/A1 has been obtained by your employer for the same salary.
 - Question answered by Matt Walters @ Capital Tax Consulting

3. What is the 30% tax allowance?

The 30% ruling is a special incentive for The Netherlands. It means that the Dutch authorities have deemed you as a highly desirable worker who posses skills that are seen to be in short supply and high demand (there are 5 criteria). The ruling means that the first 30% of your income is exempt of Dutch tax (Social Security is still due).
 - Question answered by Adam Craighill @ TCP Group

4. Am I eligible to use the E101?

E101 (or A1 as it is now known) is a local social security dispensation obtained by an employer sending their employee on a temporary (up to 2 years) assignment abroad. If you are working on a foreign assignment, you may well be eligible for E101, and may therefore pay social security contributions to the country of your employer.
 - Question answered by Matt Walters @ Capital Tax Consulting

5. What is the 183 day ruling?

The 183 day ruling is designed for project based assignments. It means a ltd company can send their employee to their client in a foreign country (with an E101) and assuming that the contractor will not exceed 183 there will be no need to withhold that particular country’s tax. There is a strict distinction that under no circumstances can this employee work on-site for anyone other than the site belonging to the client their company is billing. They may not work through a 3rd party (agency).
 - Question answered by Adam Craighill @ TCP Group

6. Why do other agencies seem more "flexible" on how I work in Europe?

Because Maximus have made the decision to be totally compliant and are therefore able to indemnify every party in the employment chain against and Tax, Social Security and tax liabilities.
 - Question answered by Adam Craighill @ TCP Group

7. Why can I not use a payroll service provider of my own choice?

Maximus has selected a shortlist of service providers to ensure that what is being done is compliant with local tax and social security laws. In this manner we are confident that the payroll solution that you are using will allow you to complete your project without any concerns about compliance.
 - Question answered by Matt Walters @ Capital Tax Consulting

8. But I have many contractor friends who work in this way, why can't I?

Essentially any contractor working in a non-compliant fashion presents a liability to anyone in the employment chain and Maximus have made a business decision to protect all in the chain from tax, employment and Social Security liabilities.
 - Question answered by Adam Craighill @ TCP Group

9. I don’t buy it! It's merely scare mongering, what's the worst that can happen?

You (the contractor), your agency (Maximus) and more likely the end client will be held liable for any unpaid tax and social security. There will also be a large fine which is commonly 100% of the unpaid tax as well as a mandatory fine for not paying. For example, if a countries authorities deem a contractor to have earned (in a non-compliant way) €10k a month they can decide that this contractor was the employee of either the agency or most likely the end client and that this €10k was a net payment and therefore the company has a liability of tax and Social Security ion this €10k as well as employer SS – the 3 of these usually amounting to the net figure (€10k). the fine would therefore be €10k in unpaid taxes/SS and the same figure again as a fine. The total; fine for this would transpire to be around €20k. it would then be the responsibility of the end client and the agency to prove otherwise. This is incredibly costly in both time and finance.
 - Question answered by Adam Craighill @ TCP Group

10. So what are in fact the benefits of working in Europe, if there's so much red tape?

There is no more red tape involved in most European countries than there is at home, it’s just different.  There is more to think about because more than one country (home and workplace at least) is involved, however, the companies that Maximus has selected are professional, competent and experienced, and will be able to reduce the administrative load of working abroad. With the job market as it stands, work in Europe holds many attractions: good rates; availability; interesting locations; opportunities for professional advancement and others.  With the proper support, working in Europe can be as rewarding now as it ever has been.
 - Question answered by Matt Walters @ Capital Tax Consulting