Hi,
I'm trying to get clarification on the scope of IR35 and have really struggled to get a clear view.
My situation is that I'm British but live in the Netherlands. Current contract structure is:-
My UK PSC -> UK Agent -> UK End Client
I pay my salary from my UK company and calculate/deduct/remit Dutch taxes as I'm tax resident in the NL. I have an NT tax code issued by HMRC.
The reality is that I provide services the majority of the time from the Netherlands.
I'm trying to determine if my contract is out-of-scope or whether I could get an out-of-scope ruling from HMRC.
By default the agent, etc. are assuming that my contract is subject to an in/out review the same as everyone else because the contract is between UK companies, etc.
If I'm ruled inside IR35 and the payer calculates PAYE there would be no resulting NI/Tax to pay given my NT tax code - therefore from HMRC's perspective it's mute but from my point of view it impacts me hugely because the full contract value would need to be paid as salary and have Dutch tax calculated on.
The reality is that the Dutch benefit, HMRC don't benefit and I lose.
So if I'm forced down this route there's nothing to pay HMRC but I have increased Dutch tax and I also lose being able to process revenue through my PSC and therefore cannot claim business expenses for my travel costs which are significant, etc.
Any ideas? Is there anyway I could get an out-of-scope or similar type judgement otherwise almost certainly the end client will force me to move to an umbrella, etc. If I can prove IR35 doesn't apply then they will allow my PSC to continue to have an arrangement.
Many thanks!
I'm trying to get clarification on the scope of IR35 and have really struggled to get a clear view.
My situation is that I'm British but live in the Netherlands. Current contract structure is:-
My UK PSC -> UK Agent -> UK End Client
I pay my salary from my UK company and calculate/deduct/remit Dutch taxes as I'm tax resident in the NL. I have an NT tax code issued by HMRC.
The reality is that I provide services the majority of the time from the Netherlands.
I'm trying to determine if my contract is out-of-scope or whether I could get an out-of-scope ruling from HMRC.
By default the agent, etc. are assuming that my contract is subject to an in/out review the same as everyone else because the contract is between UK companies, etc.
If I'm ruled inside IR35 and the payer calculates PAYE there would be no resulting NI/Tax to pay given my NT tax code - therefore from HMRC's perspective it's mute but from my point of view it impacts me hugely because the full contract value would need to be paid as salary and have Dutch tax calculated on.
The reality is that the Dutch benefit, HMRC don't benefit and I lose.
So if I'm forced down this route there's nothing to pay HMRC but I have increased Dutch tax and I also lose being able to process revenue through my PSC and therefore cannot claim business expenses for my travel costs which are significant, etc.
Any ideas? Is there anyway I could get an out-of-scope or similar type judgement otherwise almost certainly the end client will force me to move to an umbrella, etc. If I can prove IR35 doesn't apply then they will allow my PSC to continue to have an arrangement.
Many thanks!
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