Originally posted by SuperLooper
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Advice on "employment" with USA-based company
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Originally posted by jamesbrown View PostI really don’t see how this could be inside IR35 given the far more clearcut AB5 rule in CA and the difficulty in enforcing SDC, in practice, but you should get it reviewed.
I also don’t really see the problem with the DPNI scheme. It isn’t the CA company that manages this, it’s you. The advantage is employment without ErNI and also no problem w/r to MVL.
Still, it sounds like you’re going the contract route to begin with. Best of luck. You may want to purchase some forward contracts for GBP in USD to reduce currency risk. They may ask for a W8-BEN-E. Insurance should be simple with UK jurisdiction and governing law of E&W.
Agree about the DPNI scheme but I guess from their perspective it’s not just about payroll but also having proper employment contracts in place that reflect U.K. employment rules and that’s what services like Remote.com. They’re small and they’re legal team is tied up with other business right now which is why it’s not happening now.
I just need to ensure that when the perm role begins that the salary offered is still the same gross after employers NIC and that they don’t try to reduce it to compensate. On the plus side I will have U.K. employment rights, a proper contract and should hopefully be able to agree a salary in GBP too. Should make it easier to get the pension sorted as an employer contribution/salary sacrifice.Comment
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This sounds a lot like the company I am engaged with in the USA.
I have had my contract reviewed via QDOS recently. I had some ammendments changed in the contract but overall they have deemed the as outside IR35.
Most definitely get your own contract checked and good luck.Last edited by dpilch; 1 October 2020, 11:04.Comment
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Originally posted by TheCyclingProgrammer View PostI just need to ensure that when the perm role begins that the salary offered is still the same gross after employers NIC and that they don’t try to reduce it to compensate. On the plus side I will have U.K. employment rights, a proper contract and should hopefully be able to agree a salary in GBP too. Should make it easier to get the pension sorted as an employer contribution/salary sacrifice.Comment
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I think the reality is that they want to treat their employees like employees, not independent consultants. That requires either setting up a permanent establishment or using a service like Remote.com or LetsDeel and I think more and more remote-first tech companies will start moving in this direction.
Let’s face it, in the tech world in particular, the days of just looking to hire from your existing base are over. Remote first companies are going to become more and more prevalent. It’s only right IMO that they hire people correctly and those employees are afforded the rights they are entitled to and taxed correctly in their jurisdiction.
I’m surely they are fully aware of the PE risks but as you say this is unlikely to be an issue so long as the employees have no real authority to conduct business on behalf of their employer.
From my own personal perspective, I made a decision to return to a perm role as I felt it was the right move for my career. I don’t want some weird hybrid employee/contractor relationship. I’m ready to leave that world behind for now.Comment
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