Switch contracts to Overseas companies Switch contracts to Overseas companies
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  1. #1

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    Default Switch contracts to Overseas companies

    Hypothetical situation:

    HSBC is international. Their USA branch is a different company to the UK branch.
    If you can persuade them to sign a contract with an EU based company and work this in the UK what will happen?

    I assume because you will be doing work in the UK with your EU business you will have to pay taxes in the UK. Which taxes though?
    The corp tax on income to the EU company? Other?

    Assume your salary from the EU company is £8100/yr.

    I guess double taxation treaty will be in place, but will the IR35 rules apply?
    Last edited by pscont; 13th February 2020 at 13:58.

  2. #2

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    I wouldn't bother given the hoops. I've still got a Barclays Capital contract awaiting a start date. Based in Canary Wharf, "99% approved" in August 2012, just needed some Director in NY to click a button.

    They really don't care.
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  3. #3

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    Yes, overseas clients are treated the same as UK clients w/r to IR35, including after April (based on the draft legislation). No, it probably isn't enforceable.

    But if the overseas company has a UK branch (or, indeed, if there is any UK presence above the PSC in the supply chain), then the UK company is the Fee Payer (and the true end client, most probably).

    So, no, this isn't a route around anything.

  4. #4

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    seriously????

    You think a global multi-national bank is going to bend the rules so a single contractor can pay a bit less tax?
    See You Next Tuesday

  5. #5

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    Just asking like. It might be a valid set up.

    USA comp > EU comp. But they need some work done in the UK for any reason.

    So EU comp starts working in the UK. Not sure why IR35 will apply when there are no UK based LTDs involved.

    It makes sense to pay corp tax at the point of work (17% UK) + whatever corp tax in the EU-17%. Also if in UK 6+ month to pay personal taxes on income/salary from EU LTD.

    What are the texts in IR35 legislation that treat this setup?

  6. #6

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    Quote Originally Posted by pscont View Post
    Just asking like. It might be a valid set up.

    USA comp > EU comp. But they need some work done in the UK for any reason.

    So EU comp starts working in the UK. Not sure why IR35 will apply when there are no UK based LTDs involved.

    It makes sense to pay corp tax at the point of work (17% UK) + whatever corp tax in the EU-17%. Also if in UK 6+ month to pay personal taxes on income/salary from EU LTD.

    What are the texts in IR35 legislation that treat this setup?
    Oh, FFS, go and read them yourself if you think you know better. ITEPA, chapter 2. Plus the Finance Bill in draft.

    If *you* and *YourCo* are working from the UK, then *YourCo* is within the scope of IR35, regardless of the supply chain above.

  7. #7

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    Just a thought, bearing in mind the abject failure of every single one of your ideas, if you go and do a bit of research and try understand why your question is so utterly ridiculous you might spot something that is viable/worth discussing.

    Throwing random stupid ideas out there with no research at all won't uncover them.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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