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Working remotely for a UK client from an EU country

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    #21
    Originally posted by NotAllThere View Post
    Excellent point. Still... they'd be deducting for NI.
    Yes, it’s basically the minimum to hope for, but it won’t solve ErNI or, I suppose, the Apprenticeship Levy, if applicable. Overall, the best and correct approach is to convince the fee payer that deductions should not be made at all because it is not income subject to UK tax.

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      #22
      Originally posted by jamesbrown View Post
      I think the question here is how the fee payer treats the payment from next April, based on the client’s status determination. The OP has limited control over this, beyond informing them that they have applied the law incorrectly. However, as a minimum, the fee payer must apply the proper tax code to a deemed payment. Ideally, they will be convinced that the contract is outside of the scope of IR35 and, thus, not make deemed payments at all. In that case, it will be properly taxed at source, outside the UK. If they don’t do that, there will be ErNI to fight over unless the client is paying more.
      If he applies a tax code he will be operating through a UK registered business, and there begin the problems. He will be legally obliged to register a company where he is working remotely. Unfortunately you can't just ignore the obligations in the other country. Since it is a UK registered company he will be expected to pay tax in the UK even if he is non-resident. His country of residence will also expect to fully tax any income from working remotely. If they routinely enquire and find out he does all the work in that country he will probably get into trouble, as they would have expected him to register his business there.
      I'm alright Jack

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        #23
        Originally posted by NotAllThere View Post
        Why would you expect to? I've contracted remotely several times and have always been paid in the currency of client/agency's country of operation. I.e., I've born the currency risk.
        This wasn't the point I was making. I was loosely responding to LadyM's suggestion to invoice in Euros to a £ operation, from Europe, thereby demonstrating beyond all doubt that one is Outside IR35.

        And if the agency is not used to, or incapable of paying in Euros, specifically due to currency fluctuation, then in this case, it will be the agency who will borne out the currency risk. Except that they won't. Obviously.

        This is not about a contractor invoicing in and receiving Bolivars.

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          #24
          Originally posted by BlasterBates View Post
          If he applies a tax code he will be operating through a UK registered business, and there begin the problems. He will be legally obliged to register a company where he is working remotely. Unfortunately you can't just ignore the obligations in the other country. Since it is a UK registered company he will be expected to pay tax in the UK even if he is non-resident. His country of residence will also expect to fully tax any income from working remotely. If they routinely enquire and find out he does all the work in that country he will probably get into trouble, as they would have expected him to register his business there.
          It isn’t him or his company that applies a tax code to a deemed payment for a private sector gig from April 2021, it is the fee payer. You seem to be missing that point(?) I am talking about post April 2021 where the deemed payment is made by the fee payer to some business overseas (assuming they won’t make payments to a self employed person).

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            #25
            Originally posted by jamesbrown View Post
            It isn’t him or his company that applies a tax code to a deemed payment for a private sector gig from April 2021, it is the fee payer. You seem to be missing that point(?) I am talking about post April 2021 where the deemed payment is made by the fee payer to some business overseas (assuming they won’t make payments to a self employed person).
            If the payment is to a business overseas, then he will have no tax status in the UK, will have deregistered, and everything is above board.
            I'm alright Jack

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              #26
              Originally posted by BlasterBates View Post
              If the payment is to a business overseas, then he will have no tax status in the UK, will have deregistered, and everything is above board.
              But we don't know that in the OP's case, everything will be "above board."

              The question, with just how above or below board it would be for him/her, was whether s/he would be considered Outside IR35 by a new world client - whereby currently, most clients will blanket decide Inside, irrespective of.... just about anything.

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                #27
                Originally posted by BlasterBates View Post
                If he applies a tax code he will be operating through a UK registered business, and there begin the problems. He will be legally obliged to register a company where he is working remotely.
                Not in the country I live in. I'd register under Arbeitnehmende eines Arbeitgebers mit Sitz im Ausland. I'd be legally an employee of the UK business. And have to account for my own and company social payments (NI).
                Down with racism. Long live miscegenation!

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                  #28
                  Originally posted by BlasterBates View Post
                  If the payment is to a business overseas, then he will have no tax status in the UK, will have deregistered, and everything is above board.
                  Sure, that is the ideal situation, if the OP is non-resident. If the fee payer further accepts that position, it should be straightforward. What we’re discussing here is the possibility that they don’t accept that position post April 2021 and they instead insist on making deemed direct payments to the overseas business. In that situation, the OP can, as a minimum, have an NT code applied, but that is not ideal.

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                    #29
                    Originally posted by jamesbrown View Post
                    Sure, that is the ideal situation, if the OP is non-resident. If the fee payer further accepts that position, it should be straightforward. What we’re discussing here is the possibility that they don’t accept that position post April 2021 and they instead insist on making deemed direct payments to the overseas business. In that situation, the OP can, as a minimum, have an NT code applied, but that is not ideal.
                    Well, I think that's the situation I will be in. It seems likely that I will get the non-residency based on my circumstances. However, I think the client will declare all contractors inside IR35, including me.

                    So basically I will be declared inside IR35 but I will have the NT code given to non-residents.

                    The question is, will I still be able to claim back some taxes from HMRC?

                    Comment


                      #30
                      Originally posted by skysies View Post
                      Well, I think that's the situation I will be in. It seems likely that I will get the non-residency based on my circumstances. However, I think the client will declare all contractors inside IR35, including me.

                      So basically I will be declared inside IR35 but I will have the NT code given to non-residents.

                      The question is, will I still be able to claim back some taxes from HMRC?
                      This is not really a question of non-residency, more importantly is this UK sourced income. Non-residents pay tax on UK sourced income. If you are working remotely it shouldn't be UK sourced income. You really need to consult an accountant in the UK and where you will be living. Mistakes are very costly and very time consuming to fix once you have registered everything incorrectly. You need to be thinking about the tax authority where you will be living and not simply focus on HMRC.
                      Last edited by BlasterBates; 28 June 2020, 23:09.
                      I'm alright Jack

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