Originally posted by skysies
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
IR35 - Switching Tax Residency Overseas But Staying With UK Client
Collapse
X
-
I'm alright Jack -
Originally posted by BlasterBates View PostI misunderstood, I'd assumed you were working 1 day a week. There is no difference between 1 day and 3 days. As your Accountant has suggested, you are liable for for IR35. However the original question was about working remotely, which is quite different from your circumstances.Comment
-
Originally posted by skysies View PostWell, apparently if you have a second client, IR35 ceases to apply.I'm alright JackComment
-
In principle, you must be chargeable to UK tax for a tax liability under IR35 and chargeable to UK NICs for an NICs liability. These two liabilities are separate. The residency rules are, in turn, completely separate from IR35. However, it is much harder to lose your UK tax residency nowadays.
The number of concurrent contracts is largely irrelevant for IR35, which applies to each contract separately. There is also no relationship between this and tax residency.
In other words, quite a lot of confusion in this thread.Comment
-
Originally posted by jamesbrown View PostIn principle, you must be chargeable to UK tax for a tax liability under IR35 and chargeable to UK NICs for an NICs liability. These two liabilities are separate. The residency rules are, in turn, completely separate from IR35. However, it is much harder to lose your UK tax residency nowadays.
The number of concurrent contracts is largely irrelevant for IR35, which applies to each contract separately. There is also no relationship between this and tax residency.
In other words, quite a lot of confusion in this thread.
However, in both cases it will be very difficult to escape IR35.Comment
-
Originally posted by skysies View PostI'm not saying that residency and IR35 are related. In my opinion, it doesn't matter whether you work offshore through your LTD for a client based in the UK. Or whether you physically visit him for several days. I think in both cases you can get the non-residency.
However, in both cases it will be very difficult to escape IR35.Last edited by BlasterBates; 9 February 2020, 13:03.I'm alright JackComment
-
Originally posted by BlasterBates View PostThat is not true. If you work offshore remotely you are not liable for tax or IR35. When you work remotely you are in an office in a foreign country and that office and the income is subject to the rules of that country.Comment
-
Originally posted by skysies View PostThat seems like a dodgy scheme to me. All income generated in the UK should be taxed at source, meaning in the UK. The IR35 would also appy in that case. I just can't see how the UK client will decide to put you outside of IR35, if all their other contractors are on PAYE.
The last point you make is a completely separate one and the the supply chain above you may indeed not be willing to risk that you become chargeable to UK tax at some point during the contract. It is easier for them to ignore outliers like you. FWIW, if you are regularly working from the UK or have other ties to the UK, you may well be resident for UK tax purposes, but that is the first thing to establish.Comment
-
Originally posted by skysies View PostThat seems like a dodgy scheme to me. All income generated in the UK should be taxed at source, meaning in the UK. The IR35 would also appy in that case. I just can't see how the UK client will decide to put you outside of IR35, if all their other contractors are on PAYE.
The fact is regardless of where you work you will be subject to tax, it is just a question of in which country. If you are not familiar with cross border working you can get into a lot of trouble. You need to be very careful if you decide to work remotely for the same client.Last edited by BlasterBates; 9 February 2020, 14:38.I'm alright JackComment
-
Originally posted by skysies View PostThat seems like a dodgy scheme to me. All income generated in the UK should be taxed at source, meaning in the UK. The IR35 would also appy in that case. I just can't see how the UK client will decide to put you outside of IR35, if all their other contractors are on PAYE.
If you are not tax resident in the UK and you work in the UK you are still liable for tax, and IR35 would then apply.
If you don't come to the UK to work, but your client is in the UK, then IR35 does not apply. It's simply a business to business supply from an overseas contractor to a UK company.
Non-residency for tax requires you pass a number of tests, one of which is that you must not be in the UK more than 90 days per year, and no more than 30 of those for work purposes. If you are working on your client site for 3 days per week, then you are tax resident and IR35 applies.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment