IR35 - outside to outside, move overseas IR35 - outside to outside, move overseas
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  1. #1

    Default IR35 - outside to outside, move overseas

    I am moving overseas in March permanently. Been contracting a few years and my current client is a very large financial services co (not a bank), started Sep.
    Have always operated all my contracts outside. My plan was to leave at the end of Feb when the contract's up, as I was 99% sure an inside-or-umbrella type of choice would be offered.

    Amazingly, all pointers now are for an outside SDS in the coming couple of weeks. So I am now 95% sure of that outcome, having spoken with people in direct contact with the decision makers (agent, effectively).
    The client also offered an extension for 3+ months to work remotely, which I am happy to accept - based on no IR35 risk to me.

    Questions:
    - Is there anything I should still worry about, or have I lucked out and should go business as usual into the next tax year?
    - Is my being based abroad a reason for extra caution with regards to IR35? I guess it's good actually that I work 'wherever I want to' from the supervision/control POV. But I don't want to attract interest from the taxman from any 'offshore-working' type of checks. I intend to get those right i.e. pay my taxes 100% correctly. But in theory it could then lead them to look into my previous contracts for IR35 clues, even though this one will likely have the cast iron guarantee of an outside SDS!

    The country in question has high (UK-level) taxes, plus bilateral taxation agreements with the UK where they ask for how much I paid in the other country and offset theirs. Just saying to show it's not some tax heaven island :-D

    I am posting under IR35 and not in another area because a) my first question is about IR35, and b) in my second question, I am not too worried about how to get the inter-country taxation right i.e. declare and pay all correctly, but more about whether even after getting it right, if I might be at a higher risk of interest from HMRC if in the midst of the IR35 reform I up sticks and leave, yet continue contracting - outside.
    Or am I overthinking it?

  2. #2

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    Quote Originally Posted by worthchanging View Post
    <snip>

    Amazingly, all pointers now are for an outside SDS in the coming couple of weeks. So I am now 95% sure of that outcome, having spoken with people in direct contact with the decision makers (agent, effectively).
    The client also offered an extension for 3+ months to work remotely, which I am happy to accept - based on no IR35 risk to me.
    The agent told you????

    Quote Originally Posted by worthchanging View Post
    Questions:
    - Is there anything I should still worry about,
    yes. The agent being a lying toerag.
    See You Next Tuesday

  3. #3

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    Quote Originally Posted by Lance View Post
    The agent told you????

    yes. The agent being a lying toerag.
    Hehe yes I understand where you're coming from but it's a slightly different kind of agent, dedicated to the only client of his, based on site, responsible not only for recruiting but also some project business side of things. Known him for a while too, so I'm sure he's relaying what he's told

  4. #4

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    by by, don't let the door slap yer arse on the way out
    Entropy is NOT what it used to be.
    Inertia, however........................

  5. #5

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    Quote Originally Posted by worthchanging View Post
    Hehe yes I understand where you're coming from but it's a slightly different kind of agent, dedicated to the only client of his, based on site, responsible not only for recruiting but also some project business side of things. Known him for a while too, so I'm sure he's relaying what he's told
    Is the agent fearful of being determined inside as well?
    See You Next Tuesday

  6. #6

    Should post faster

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    Agent and client, understandable, would like to keep you a happy little worker until either: they have another option to fall back on or it is too late for you to do anything about it and you might be more likely to take one for the team.

    For your second question you should get a consultation from a trusted accounting firm in the host country. Shouldn't set you back too much. If you get it in written it could be your insurance policy if ever you get investigated by the tax office.

  7. #7

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    Quote Originally Posted by GigiBronz View Post
    For your second question you should get a consultation from a trusted accounting firm in the host country. Shouldn't set you back too much. If you get it in written it could be your insurance policy if ever you get investigated by the tax office.
    thanks, good point. I was more 'curious' about getting looked into by HMRC not that country's tax office, but I guess one thing might lead to another...
    Trying to be a bit paranoid here.

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