Main Customer in USA?

[portseven]

Asking for a friend (honest!)

UK Ltd, invoicing a LLC in the USA, this is the main client. I assume given the engaging company / end client is in the USA, the obligation with the proposed new approach won't apply as they are not in the UK and thus not subject to UK Tax policy?

[jamesbrown]

It still applies, in principle (in the draft legislation at least).

In practice, it's completely unenforceable unless there's a UK company in the supply chain, in which case the liability moves to them.

There's no requirement to inform the US company of its obligations.

There's no (realistic) prospect of HMRC forcing a US company with no UK presence to comply.

In the absence of fraud, there's no liability on the PSC.

In short, unenforceable.