Claiming expenses incurred abroad finding client

[jamesbrown]

I'd have thought that when threatened with the tax authorities, most American companies would bend over backwards to comply with a simple request to answer the question. And if they know nothing of IR35 then why wouldn't they be honest and say "we always saw him as an employee"?

Even if they remain silent, that doesn't prevent HMRC from assuming that the arrangement is a sham because there was no unfettered right of substitution in the contract.

Whose tax authorities? HMRC have no jurisdiction in the US, obviously, and it's unlikely that the client would be caught off-guard. This would immediately get pushed to their legal department. Also, HMRC can assume what they like; they need to demonstrate the absence of all three pillars (of which lack of D&C is, arguably, the most important and straightforward to demonstrate, barring an actual substitution), and it will be tough (but certainly not impossible) if they only have a solid contract and supporting evidence coming from the OP. However, as I said, it changes nothing about the reality of the situation, and the OP should treat this as any other engagement. One can expect that HMRC will pursue any case doggedly, even when faced with clearcut evidence, such as an actual substitution.

[buddy99]

I'd have thought that when threatened with the tax authorities, most American companies would bend over backwards to comply with a simple request to answer the question. And if they know nothing of IR35 then why wouldn't they be honest and say "we always saw him as an employee"?

Even if they remain silent, that doesn't prevent HMRC from assuming that the arrangement is a sham because there was no unfettered right of substitution in the contract.

The contract also states the below. Guess it only helps if my client does not say otherwise:

"<My company> and <my company staff> shall serve solely as independent contractor’s performing services for Client, and not as employees, partners, representatives or joint ventures of Client."

Anyway, I get the point. I'll check with an expert. End of.

As for my original question expenses, sounds like its at best, a "maybe" situation with some risk but ultimately the consensus seems to be to worry about other more pressing things for now. Thanks to everyone(with maybe one exception) for your help! I know, as with all advice, it is just advice but it does make things a little clearer now before I go to an accountant.

[TheFaQQer]

The contract also states the below. Guess it only helps if my client does not say otherwise:

"<My company> and <my company staff> shall serve solely as independent contractor’s performing services for Client, and not as employees, partners, representatives or joint ventures of Client."

Anyway, I get the point. I'll check with an expert. End of.

If the contract said "<My company staff> shall have sex with Angelina Jolie all day every day", and it doesn't reflect the reality of the situation, it isn't going to happen

That's why the contract and working practices review by an expert are important.

[jamesbrown]

<My company staff> shall have sex with Angelina Jolie all day every day

<trips over in rush to check contracts>