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Earning in UK living in se

Moving to sweden for 2 years or less

post 25.Jun.2019, 04:26 PM
Post #1
Joined: 25.Jun.2019

Hi All,

I have a query on tax and best way to reduce our cost of it. I am moving with my husband to Stockholm in Sept. We and confused whats the best way forward. My UK company wants to convert my job into contract. It can be in Sweden or UK. My company has its base only in London.

I am planning to live 3 weeks in Stockholm and 1 week in London due to our London home commitments
We will continue to have address in UK. I was hoping what would be best way forward for me

1) Join a umbrella company/ Open a ltd in UK and pay no taxes in Sweden. I will not apply for any personal number etc. Will I still have to pay tax in Sweden or can continue in UK ?

2) Join a umbrella company in Sweden but with high taxes how to I get tax benefits and not end up paying more than what I earn today in taxes

We don't plan to stay beyond 2 years.

Anyone in same boat or understanding of it
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post 26.Jun.2019, 12:16 PM
Post #2
Joined: 20.Sep.2011

If tou have a contract wouldn't that make you self employed?

If you want to have a car, mobile etc in sweden you'll find it easier with a personal number.

Plus there is Brexit to consider and your rights to be a migrant worker.
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yet another brit
post 28.Jun.2019, 07:38 PM
Post #3
Joined: 5.Jan.2013

There are several things you might want to think about...

1. Where you pay personal tax depends on where you are resident. It sounds as if you will be tax resident in the UK. Therefore, it becomes a question of how much liability for employers tax you can limit/avoid.

2. If you are/own a corporate entity (whether in the UK or SE) - either a sole trader or a limited company - then you invoice the client for the work. The corporate entity pays/reports in the country where it is incorporated. You who receive the money are liable to pay employers tax on your own behalf as required when/if you take a salary.

3. If you want the employer to pay you as a private individual, and you are resident elsewhere, then they can pay a reduced employers tax (the so-called SINK rate) which takes into account that you aren't accumulating a SE pension. But you need to apply for this.

Roughly put, a Swedish company can *either* pay an invoice as a B2B transaction ( in which case the receiving business - you - is responsible for the downstream consequences) *or* they can pay an individual, in which case they have to withhold employers tax at the full rate unless an exception (SINK) been applied for and approved since the recipient is not SE resident.

In other words, set your hourly rate wisely.
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