IR35 Compliance
Hi there,
I am new to the site and I was hoping you all might be able to help me as I have quite a pickle.
I am a UK expat living in New Zealand since August 2012, before I left the UK I worked for a UK company. Since I arrived in NZ with full residency I haven't really found any work that suits my qualifications as the industry doesn't really exsist. The company that I worked for in the UK kept in contact and after some discussions they offered me some Freelance work on a contract by contract basis. The first few contracts I performed as a sole trader before becoming incorporated as a NZ Ltd company. These contracts have been to complete a set amount of work with a fixed day rate but indefinite time scales. With gaps of upto a couple of months in between. The work is based on computers and I either work on the data locally or through remote access from my home office.
This has worked fine but it lacks some of the stability I crave with a young family.
The company I used to work for has since come back to me saying that they value my services greatly and would not like to lose me to other clients as they fear I will be snapped up. We have looked into ways for me to be an employee but as they are a small-ish company they don't want to necessarily have an NZ tax presence, which is required for me to be an employee. So we discussed me remaining as a Contractor but writing a contract between the companies such that I would provide 37.5 hours a week from my home office to them and be paid a monthly fee to my NZ company.
Being a NZ tax resident ordinarily IR35 would not be an issue, however as part of my contract the UK company would like me to return to the UK for 2-3 months starting next summer and every summer after to work in their office and on site as requested. This becomes an issue as under the DTA the work that I perform is to do with the exploration and exploitation of the seabed which the DTA states that I would be required to pay UK tax on those earnings. Would this at the same time lead me in to trouble with IR35?
I have talked to my accountant here and he says it is beyond him and to look at some UK tax advice. I am pissed off with him as when I took on his services he led me to believe that he would help me file a UK tax return and was happy to advise me with regards to UK tax law now he says he will only go as far as the DTA.
As yet the contract with the UK company is un-written and we are looking for a place to start.
I am more than happy to pay my dues I would just like to know where I stand before we write the contract.
Cheers
Sparky
I am new to the site and I was hoping you all might be able to help me as I have quite a pickle.
I am a UK expat living in New Zealand since August 2012, before I left the UK I worked for a UK company. Since I arrived in NZ with full residency I haven't really found any work that suits my qualifications as the industry doesn't really exsist. The company that I worked for in the UK kept in contact and after some discussions they offered me some Freelance work on a contract by contract basis. The first few contracts I performed as a sole trader before becoming incorporated as a NZ Ltd company. These contracts have been to complete a set amount of work with a fixed day rate but indefinite time scales. With gaps of upto a couple of months in between. The work is based on computers and I either work on the data locally or through remote access from my home office.
This has worked fine but it lacks some of the stability I crave with a young family.
The company I used to work for has since come back to me saying that they value my services greatly and would not like to lose me to other clients as they fear I will be snapped up. We have looked into ways for me to be an employee but as they are a small-ish company they don't want to necessarily have an NZ tax presence, which is required for me to be an employee. So we discussed me remaining as a Contractor but writing a contract between the companies such that I would provide 37.5 hours a week from my home office to them and be paid a monthly fee to my NZ company.
Being a NZ tax resident ordinarily IR35 would not be an issue, however as part of my contract the UK company would like me to return to the UK for 2-3 months starting next summer and every summer after to work in their office and on site as requested. This becomes an issue as under the DTA the work that I perform is to do with the exploration and exploitation of the seabed which the DTA states that I would be required to pay UK tax on those earnings. Would this at the same time lead me in to trouble with IR35?
I have talked to my accountant here and he says it is beyond him and to look at some UK tax advice. I am pissed off with him as when I took on his services he led me to believe that he would help me file a UK tax return and was happy to advise me with regards to UK tax law now he says he will only go as far as the DTA.
As yet the contract with the UK company is un-written and we are looking for a place to start.
I am more than happy to pay my dues I would just like to know where I stand before we write the contract.
Cheers
Sparky
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