11607 Setting up an E-Commerce site

Hi,

I have just lost my job here in Italy, and closed down my partita IVA number, which I needed for the medical cards. This is temporary, due to the economy, and I will no doubt work for them again when the economy picks up (I hope!)

We moved over here in September ’07, we have residency and a mortgage on our house. This isn’t a problem, as I (thankfully) didn’t close my UK limited company account, so I am heading back to the UK this week to do some work for a UK company and invoices will be paid into my UK company account. What will be hard is spending the requisite 183 days in the UK, to qualify for UK taxes, and not Italian.

My big concern is medical cover for my wife and kids, as they are staying here (in Italy) whilst I go back and forth to the UK, as the children have settled in school very well. The company I worked for here in Italy have offered my wife a job running her own website, selling the products they manufacture.

If she accepted this offer, what would she need to do, and who would she need to see to set it up? I assume she needs a Partita IVA number, to qualify for the INPS contributions, is this correct?

Thank you,

Chris

Category
Legal

Submitted by Anonymous (not verified) on Wed, 02/25/2009 - 18:38

Hi Chris,

I'm sorry to hear about the recent turbulent time that you have had but you know what they say... everything happens for a reason. I'm glad your kids are doing well in school, at least that is something you can be very happy about.

As for your wife's website can you give us a bit more background please? (Sorry but I don't spend as much time on the forum as I would like to so I'm not really aware of your circumstances) Regarding the partita IVA I guess your wife would have to go through a similar path that you did when you obtained your P.IVA?

I could be completely wrong about this (Please everyone feel free to correct me if I am) but I am under the impression that INPS contributions are to pay for a pension in later life. As EU residents are you not entitled to healthcare in Italy via your EHIC cards? I find it difficult to imagine a situation where any of your family would be refused treatment due to a lack of family INPS contributions.

Ahhhhhhh, I have just re-read your post and seen the part about the medical cards. Now I see what you mean about the healthcare...

However, before becoming more fully integrated into Italian society with a P.IVA etc. I had a motorbike accident in the Appennines and I received fantastic healthcare from the local hospitals, virtually free of charge and without any problems at all.

Are the medical cards necessary? (I have to admit I have no idea how such things as prescriptions would work for somene in your family if there is nobody in the household making INPS contributions.) Perhaps someone else can shed some more light on this?...

I hope you have/have had a good trip to the UK.

Best of luck,

Chris

Submitted by Anonymous (not verified) on Wed, 02/25/2009 - 18:43

Afterthought:

If INPS are not really necessary to be paid by your wife, for the medical cards, could the company that you worked for not pay 'you' via, your UK company, and in return you could work on their website during your trips in the UK? (Perhaps your wife could assist you with this)

Just a thought...

:smile:

Submitted by Anonymous (not verified) on Sun, 03/01/2009 - 03:37

I'd get some accounting advice. I think that if you're being 'employed' by a UK company - which you will be, even though it's your own, and your work is generally in the UK then you may only have to spend 91? days a year in the UK to remain UK tax resident. Take this at face value since I've read so much about this previously without actually 'walking the walk'.

Submitted by Anonymous (not verified) on Tue, 03/10/2009 - 15:48

Thank you guys, for the information. I did think about setting up the website as a subsidiary of my own company, but I am sure that we'd still have to pay Italian tax, as the profit would be made in Italy, thus liable for Italian taxes, so am not sure how that would work, I don’t think the Italians would buy the fact that she was paying UK taxes.
I will seek advice from accountants, to see if a website would be worth it, as I know Italy like its taxes, making the UK seem like a tax haven in comparison – although I think website commerce isn’t so bad (I was classed as professional, and at least 50% of my gross was tax, IVA and INPS! – my accountants fee alone was more than my 2006 corporation tax AND accountants fees from the UK!)

Glad to be in the UK again though, I missed proper Indian meals!

Submitted by Anonymous (not verified) on Wed, 03/11/2009 - 16:43

Hi Chris,

I have to admit to being a bit jealous about the Indian meals!

I think you could pay UK taxes for the website. I believe that a UK company can operate in Italy and pay UK taxes if they fulfil certain requirements, such as not having an office in Italy. (It is, however, allowable to have a warehouse in Italy and still pay UK taxes.)

I personally would rather fork out some money at first for decent professional advice (even if it is incredibly difficult to find someone who is really knowledgable) then avoid paying unneccesary tax later. Michael Murphy has a good reputation, perhaps it would be worth contacting him...

Good luck and keep us posted!