IR35 working with a UK client

[frederico]

Hi,

I live in the EU and run a Limited Company here. I am considering entering into a contract with a UK client as a consultant for a year. I'll be working mostly from here (in the EU) but here is my question; I am likely to come to the UK every 3 months or so to spend a week at the client site for various reasons. I won't be a tax resident in the UK but I want to understand if IR35 applies (or can apply) and what different it makes. The contract will be governed by English Law (nominally).

Imagine that by working in the UK that I'm deemed to have a permanent establishment. I'll have to set up a company to pay taxes for the period of time I work in the UK (at least that is what I understand). Now let's say that HMRC then decide the contract is not IR35 compliant. Anyone have any idea what happens?

[northernladuk]

About halfway down...

https://www.gov.uk/guidance/ir35-find-out-if-it-applies

[BlasterBates]

The fact that you will be working in the EU and not in the UK except for the odd weekly business trip means this is taxable in the EU country you are working in and not the UK.

The fact that the client is in the UK has no bearing on this.

In this case IR35 will not apply.

If you were to tax it as UK income, the EU tax authority where you are resident may routinely ask about whether you were actually in the UK and proof that you were there.

I would speak to an accountant where you live.