Non-UK Resident & IR35?

[portal85]

I have just left the UK and applied for a tax code to become non-resident.

I will be residing in a new/different EU country.

I will keep my UK company open and continue its trade while being UK non-resident.

My plan is to set up a new consultancy corporation and to perform my duties and services to my UK company in the new country that I will be residing in.

I will invoice my UK company accordingly and I will be using my new company to invoice other companies worldwide for the same/similar consulting services.

However I was informed that I might come under the IR35 test as I am the Director of the UK company?

I'm hoping someone can shed some light on if/how the IR35 will apply to me if I am non-resident in the UK and the duties are performed outside of the UK.

Many thanks in advance guys.

[Fred Bloggs]

This is not so simple as it first appears, not by a long shot. For starters, if you are the director of your UK Ltd company then the company will effectively become a company of the new EU country you have moved to and will be taxed in your new EU country. That's just for starters. I think you need professional help with this from someone who is an expert in your new EU country as well as the UK. There is no harmonisation of taxes in the EU, it's a mess in my opinion.

[Chart Accountancy]

I will invoice my UK company accordingly and I will be using my new company to invoice other companies worldwide for the same/similar consulting services.

If you could clarify the purpose of invoicing your UK company, this will be related party transaction if you own both companies, and so the IR35 unlikely to be applicable but other matters are to be considered with regard to connected companies? If your UK company is in receipt of income, it will continue to trade in the UK, so liable to all taxes etc. If you receive personal income from your UK company, dividends, employment income, this will be taxed in the UK irrespective whether you are resident here. It will be only your overseas income that will come under the split year treatment in the first year, and not taxed in future years.