Client wants me to go abroad (India) and change my limited company

[Eirikur]

Can your client hire you as a temporary employee and pay all taxes for you from your salary?

[coolestchip]

Thanks folks for all your replies.

I have been contemplating not taking it, but the point is that this looks like a very good role - they are making me Country head which I think would serve me good CV wise.
And as I said before, bullet has left the pistol - I'm already here and started. They were fine with UK company initially, but now are behind my back to do something.

I thought it would be as simple as setting up a company somewhere in Europe, like Germany or Spain - lots of help on that. But this Asian thing looks tricky.

[northernladuk]

If you want to use a UK limited would I be right assuming IR35 would still apply regardless of you working abroad. With a role like Country Head you'd do be considered a controlling person and therefore inside IR35?

If you are that senior you might already have an IR35 issue already. Sounds like you are part and parcel from the limited information so far.

[sal]

Thanks folks for all your replies.

I have been contemplating not taking it, but the point is that this looks like a very good role - they are making me Country head which I think would serve me good CV wise.
And as I said before, bullet has left the pistol - I'm already here and started. They were fine with UK company initially, but now are behind my back to do something.

I thought it would be as simple as setting up a company somewhere in Europe, like Germany or Spain - lots of help on that. But this Asian thing looks tricky.

The contract is with your UK company so them asking to change that gives you way out if you want it.

IMHO the best approach is get them to put you on their payroll as employee and let them deal with the majority of the tax complications and negotiate a NET salary you deem appropriate. Sits even better in CV, I have always wondered about Senor management contractors, in my mind they are usually just scapegoats.

Any other complex arrangements with Singaporean Co or whatever are too risky with potential complications for years after the contract finishes.

[coolestchip]

Thanks people,

I'm checking if they can make me perm. It has bee a long time since I was one...
In the meantime, somehow my mind is taking me towards keep on exploring Singapore option. i'll let the group know how that goes too..maybe it'll benefit someone else.

[Milkyway]

Looking at your role in the client company, your contract and working practices clearly will be inside IR35 already, before even thinking about all this India business.
So I don't think your India tax position is more than uk one, considering IR35.

I hope you are already doing IR35 deemed payments based uk taxes? If not, you are already in hot water.

Ensure you get proper local tax experts to work on this proposal rather than from a free forum with strangers.

[kaiser78]

It has already begin, about a couple of months into it now.
Thanks for the advise on such companies, I really don't intend to do anything that upsets the taxman..

Why wasn't this sorted before you went over there, let alone now being a couple of months into it ??

[TykeMerc]

Not forgetting that there are ways and means of doing business and setting up corporate structures which would be seen as very alien if not completely illegal if you tried to do that in the UK, Europe or other parts of the "first world".

When it comes to doing business in some cultures it's desperately risky with some nasty consequences if you don't get it right, just waving a UK passport doesn't make those sorts of consequences disappear.

I would be incredibly cautious about this opportunity and if you can't get advice (where the advisor is equally culpable and liable to nasty consequences) that you totally trust about how to set things up correctly I'd be looking at running like hell from the whole setup another company in Asia idea.

[northernladuk]

Aha ... IR35 does not apply in this situation if the client/contract is with an Indian firm.

Hmm. Cognizant, Infosys etc are Indian firms but IR35 applies???

[stek]

Aha ... IR35 does not apply in this situation if the client/contract is with an Indian firm.

What?