Some further questions in post #7
Hi guys! I've just registered and thought that this forum may be a best bet for some of my questions. First, let me introduce myself and give you some background of my situation.
I'm a web/software developer from Poland who recently got hired on a permanent basis by a UK company to work remotely from Poland. I received a fairly standard British contract of employment with one significant difference - my whole gross salary is transfered to my bank account and as a Polish resident I'm legally obliged to pay all income taxes and national insurance to Polish authorities in obedience to Polish law. There are no deductions done on a British side.
Before getting hired by this UK company I used to be (and I still am, in fact) self-employed in Poland, doing all my IT work as a contractor. Not a typical freelancer - those were in fact standard 40h/week jobs, just billed as a B2B service with standard VAT invoices. This is completely legal in Poland. We don't have such strict regulations as British IR35 and almost everyone who's salary is significantly above national average becomes a contractor at some point because of huge tax benefits of such move.
When negotiating with my current employer I've raised a question if it is possible for me to be hired as a contractor and the answer was 'no', however they failed to give me a specific reason (they said something vaguely about all people there being permanent etc.). Recently I've learned about British IR35 regulations and I think this may be a real reason. I would like to renegotiate my current situation and try to convince my employer to allow me to become a contractor as this will increase my income thanks to reduction in tax and national insurance amount I'm required to pay (it will result in ca. 1000 pounds per month more in my pocket - huge difference).
I know how B2B contracts for EU residents work. I had an opportunity to do some freelancing work both for British and German companies with me residing in Poland. The only requirement is that both me and a client company are registered as EU VAT payers. After completing my work I issue a VAT invoice with a 'reverse charge' of VAT. This in theory forces my client to pay the VAT, but in practice it is cancelled, as they can deduct it from their own taxes.
So my questions are:
1. Am I right that as a Polish tax resident I don't fall into IR35 (there are no similar regulations in Poland)?
2. Are there any other things or regulations I didn't account for in my calculations?
3. What would you, as people better versed in British employment regulations, recommend to try to convince my employer to such change?
Thanks for reading and have a splendid day!
Hi guys! I've just registered and thought that this forum may be a best bet for some of my questions. First, let me introduce myself and give you some background of my situation.
I'm a web/software developer from Poland who recently got hired on a permanent basis by a UK company to work remotely from Poland. I received a fairly standard British contract of employment with one significant difference - my whole gross salary is transfered to my bank account and as a Polish resident I'm legally obliged to pay all income taxes and national insurance to Polish authorities in obedience to Polish law. There are no deductions done on a British side.
Before getting hired by this UK company I used to be (and I still am, in fact) self-employed in Poland, doing all my IT work as a contractor. Not a typical freelancer - those were in fact standard 40h/week jobs, just billed as a B2B service with standard VAT invoices. This is completely legal in Poland. We don't have such strict regulations as British IR35 and almost everyone who's salary is significantly above national average becomes a contractor at some point because of huge tax benefits of such move.
When negotiating with my current employer I've raised a question if it is possible for me to be hired as a contractor and the answer was 'no', however they failed to give me a specific reason (they said something vaguely about all people there being permanent etc.). Recently I've learned about British IR35 regulations and I think this may be a real reason. I would like to renegotiate my current situation and try to convince my employer to allow me to become a contractor as this will increase my income thanks to reduction in tax and national insurance amount I'm required to pay (it will result in ca. 1000 pounds per month more in my pocket - huge difference).
I know how B2B contracts for EU residents work. I had an opportunity to do some freelancing work both for British and German companies with me residing in Poland. The only requirement is that both me and a client company are registered as EU VAT payers. After completing my work I issue a VAT invoice with a 'reverse charge' of VAT. This in theory forces my client to pay the VAT, but in practice it is cancelled, as they can deduct it from their own taxes.
So my questions are:
1. Am I right that as a Polish tax resident I don't fall into IR35 (there are no similar regulations in Poland)?
2. Are there any other things or regulations I didn't account for in my calculations?
3. What would you, as people better versed in British employment regulations, recommend to try to convince my employer to such change?
Thanks for reading and have a splendid day!
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