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B2B between overseas company. Who does SDS

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    B2B between overseas company. Who does SDS

    If a UK company signs a contract with overseas company, who is responsible for SDS? It should be the overseas company, but they wouldnt do it. And quite rightly. What is the worst that can happen?
    Reason for asking: started looking for b2b remote work with overseas companies, work to be done in the UK.
    Last edited by min; 20 February 2020, 15:06.

    #2
    I'm in that scenario too. Some conflicting advice, partly due to unclear guidance/draft legislation, but best I can gather is that the Overseas Company is still liable to do it (unless they're a Small Company in which case it reverts to the status quo... but how would HMRC know they're a Small Company anyway if they chose not to share the info?). The fact that they may not be interested in doing so is irrelevant, it's still their responsibility. That said, they're out of jurisdiction so the chances of HMRC having the appetite to launch an investigation is pretty low.

    What I'm still trying to clarify is:
    * Do I even have to tell the overseas client about their responsibility? It seems like not.
    * As you say - is there any way to all it can come back to my PSC if they don't provide a determination? What's the worst case?
    Last edited by Pring; 20 February 2020, 15:21.

    Comment


      #3
      The draft legislation as we know it puts the liability with the overseas client. There is no mechanism for them to enforce it if the overseas client has no presence in the UK. They might gain the ability to enforce it through coming trade deals but that doesn't seem likely to happen.

      If the foreign company is a small company the liability rests with YourCo just as it always did. If it is close, keep records proving that it is a large company which keeps the liability on them.

      There is nothing in the draft legislation that would require you to discuss this with your client. You may wish to do so.

      I suppose there's some risk that if HMRC argues that you are inside and then your client opens a branch in the UK later that they might try to use their negligence in the last six years against the client. I think they'd have a rough time trying to enforce even then.

      What's the worst that could happen? It's remotely possible that they might try to have it on against you personally. I discussed that previously and have copied it on a couple times. You can read the whole thread for a little more background but the worst that could happen is here: https://www.contractoruk.com/forums/...ml#post2717334

      I think they'd have to amend the legislation to pull that one off. But I expect them to eventually amend the legislation, either before implementation or within a year or two, regarding overseas companies anyway. Something will change.

      Comment


        #4
        Extensive further discussion here:
        https://www.contractoruk.com/forums/...u-clients.html

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