# Help with understanding the autonomo contract and tax working for a company in the uk



## mikee106 (Aug 26, 2014)

Hello, 

I've currently been offered prospective work for a company which is registered in the uk. As they are a start up, they are currently only able to offer freelance or autonomo contracts. 

Intially, during my meetings with them, and before I was informed of the contract situation, we had settled on a monthly net amount.

Since my last meeting, and finding out that they wish to use a autonomo contract, I've had to reevalute the costs as, obviously with being autonomo I would have to managed the IVA (or VAT) and IRPF to pay in the system here. 

I've spend the last 4 days trying to understand exactly what these outgoings would be, which I think I understand now, but would just like to clear a few things up. 

If the company is registered in the UK and will invoicing there, I understand I will not need to include IVA, or at last include it at 0%, and also I would not mention IRPF either. 
My question is, whether then I would need to deduct this of my declarcion on a monthy/quarterly basis?, which I understand would be 20% of my invoiced earning.?

As the UK company would not be making any 'retenciones' this makes me liable to pay the IRPF, correct? Would I also be liable to pay IVA direct to 'hacienda'?

Finally, I'm trying to find a ball park figure of what my outgoing would be, after deductions; Seguridad social= 53€ for first 6 months, gestor = 50-80€ a month, 20% IRFP a month (?), so I can understand what exactly I would need to invoice to get close to the original net amount. 

Any help would be much appreciated, as the more I find out about this, the more questions it raises 

Thanks in advance.
Mike


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## Supercod (May 22, 2014)

Hi Mike, I am going to be in a similar situation to you, only it's a company I work for in the UK currently. Here is the bits I "think" I understand so far.

1. The UK company has to be VAT registered, otherwise you can't 0% the IVA. So both your IVA and their VAT number must be on the invoice. Otherwise you need to charge them 21% on top of the amount they said or you will loose out, if they are not vat registered then they lose out. If both are VAT/IVA registered it's an Interstat form and just show the money going in and out on the boxes causing no VAT to be payable, from what I understand (could have that a little confused as I want to get clarification exactly how that works).

2. You need to pay your personal tax out of the amount your getting. This happens the same as if your employed in the UK, company pays your Personal Tax on your behalf, what you need to make sure is the amount your invoicing them for takes that in to account aka they have not given you the amount you will get after personal tax like a UK staff member without them actually having to pay it.

3. You will need to pay the IRFP every quarter, your Gestor will help you with this. The UK it's done monthly when paid, so mind and keep aside that money so the bill is not a shock each quarter.

4. You can claim what you pay your Gestor as an expense of being self-employed, so it comes off the money you get taxed on.

That's pretty much most of what I can remember from my meeting, I may have that a little wrong as I am just going over the notes I made. Interested to hear from others on this also.


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## mikee106 (Aug 26, 2014)

Supercod said:


> Hi Mike, I am going to be in a similar situation to you, only it's a company I work for in the UK currently. Here is the bits I "think" I understand so far.
> 
> 1. The UK company has to be VAT registered, otherwise you can't 0% the IVA. So both your IVA and their VAT number must be on the invoice. Otherwise you need to charge them 21% on top of the amount they said or you will loose out, if they are not vat registered then they lose out. If both are VAT/IVA registered it's an Interstat form and just show the money going in and out on the boxes causing no VAT to be payable, from what I understand (could have that a little confused as I want to get clarification exactly how that works).
> 
> ...



Thanks for the reply, 

When you refer to paying both personal tax and IRFP, I had assumed these were the same thing, effectively IRFP is equivalent to Income Tax in the UK, so I think its the same thing, no? So a quarterly cost of I believe to be 20%? It starts at 9% if you are new to the autonomo system and working for a Spanish company, as they retain this amount on your behalf to pay to seguridad social.

I have a meeting this evening regarding everything, so hopefully everything will be clearer later.. I'll let you know if I find out any more helpful information. 

Thanks again.


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## Supercod (May 22, 2014)

mikee106 said:


> Thanks for the reply,
> 
> When you refer to paying both personal tax and IRFP, I had assumed these were the same thing, effectively IRFP is equivalent to Income Tax in the UK, so I think its the same thing, no? So a quarterly cost of I believe to be 20%? It starts at 9% if you are new to the autonomo system and working for a Spanish company, as they retain this amount on your behalf to pay to seguridad social.
> 
> ...


Yes it is, was not as clear in my reply as I thought in my head lol ;-) Good luck with it all, when it's my turn I am going in with the attitude of whatever I am told budget for more so if it is I am not struggling to pay tax etc.


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