Hi everyone,
After reading many posts here and elsewhere on the Internet I have come to the conclusion that there still persists confusion in regard to scenarios where one or more of the entities of a contracting relationship (contractor, PSC, client) is based abroad.
We know that in all four scenarios where the Contractor is based in the UK, that IR35 should apply:
1) UK-based: Contractor, PSC, Client --- EU-based: None --- IR35 applies: Yes
2) UK-based: Contractor, PSC --- EU-based: Client --- IR35 applies: Yes
3) UK-based: Contractor, Client --- EU-based: PSC --- IR35 applies: Yes
4) UK-based: Contractor --- EU-based: PSC, Client --- IR35 applies: Yes
But, what about scenarios where the Client and/or the PSC is UK-based, but the contractor is not (deemed non-UK resident for tax purposes, and performs the work 100% remotely from their EU residence)?:
5) UK-based: Client --- EU-based: Contractor, PSC --- IR35 applies: ? (logically it does not?)
6) UK-based: Client, PSC --- EU-based: Contractor --- IR35 applies: ? (potentially?)
7) UK-based: PSC --- EU-based: Contractor, Client --- IR35 applies: ? (probably strange scenario)
What would be your opinion about IR35 having a role in scenarios 5, 6, or 7?
My situation is Scenario 5 (am resident in Latvia, contracting via a Latvian PSC, for a UK-based Client).
Also, what do people think is the role of the Agency in this equation, since the Agency is UK-based? So, aside from the Client being UK-based, there is also the agency?
Any opinions are welcome!
After reading many posts here and elsewhere on the Internet I have come to the conclusion that there still persists confusion in regard to scenarios where one or more of the entities of a contracting relationship (contractor, PSC, client) is based abroad.
We know that in all four scenarios where the Contractor is based in the UK, that IR35 should apply:
1) UK-based: Contractor, PSC, Client --- EU-based: None --- IR35 applies: Yes
2) UK-based: Contractor, PSC --- EU-based: Client --- IR35 applies: Yes
3) UK-based: Contractor, Client --- EU-based: PSC --- IR35 applies: Yes
4) UK-based: Contractor --- EU-based: PSC, Client --- IR35 applies: Yes
But, what about scenarios where the Client and/or the PSC is UK-based, but the contractor is not (deemed non-UK resident for tax purposes, and performs the work 100% remotely from their EU residence)?:
5) UK-based: Client --- EU-based: Contractor, PSC --- IR35 applies: ? (logically it does not?)
6) UK-based: Client, PSC --- EU-based: Contractor --- IR35 applies: ? (potentially?)
7) UK-based: PSC --- EU-based: Contractor, Client --- IR35 applies: ? (probably strange scenario)
What would be your opinion about IR35 having a role in scenarios 5, 6, or 7?
My situation is Scenario 5 (am resident in Latvia, contracting via a Latvian PSC, for a UK-based Client).
Also, what do people think is the role of the Agency in this equation, since the Agency is UK-based? So, aside from the Client being UK-based, there is also the agency?
Any opinions are welcome!
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