Offshore client, UK resident, EU Ltd, IR35?

[dogquoteplus]

But you are trying to create a contrived structure to gain a tax advantage that isn't required or you use currently.

Tax aside, I see that it's unclear whether such a case would have to have an IR35 determination.

[eek]

Tax aside, I see that it's unclear whether such a case would have to have an IR35 determination.

Is the UK presence large enough to meet the criteria of the company being a medium or large-sized non-public sector organisation?

If it does them you need a determination (as the client is responsible for the decision regardless of the fact they won't have a clue) if it doesn't then you can make the decision.

[dogquoteplus]

Is the UK presence large enough to meet the criteria of the company being a medium or large-sized non-public sector organisation?

If it does them you need a determination (as the client is responsible for the decision regardless of the fact they won't have a clue) if it doesn't then you can make the decision.

Yes, the company is what you would classify a "global company" really, with HQ in Amsterdam, and an office of circa 200 people in London. The contract just happens to be with the Dutch entity.

Again, I know that using a PSC, in this case the end client makes a status determination, I just can't find anywhere what happens if using a non-UK company for a non-UK contract (if I were hired, I would have been hired in Amsterdam so to say).

[eek]

Yes, the company is what you would classify a "global company" really, with HQ in Amsterdam, and an office of circa 200 people in London. The contract just happens to be with the Dutch entity.

Again, I know that using a PSC, in this case the end client makes a status determination, I just can't find anywhere what happens if using a non-UK company for a non-UK contract (if I were hired, I would have been hired in Amsterdam so to say).

That's because it's irrelevant - there still needs to be a determination by the client and as the entire point of IR35 is to ignore intermediary companies add more overseas ones is just going to annoy HMRC.

[dogquoteplus]

That's because it's irrelevant - there still needs to be a determination by the client and as the entire point of IR35 is to ignore intermediary companies add more overseas ones is just going to annoy HMRC.

I guess, the question then becomes, "who does IR35 apply to?".

[eek]

I guess, the question then becomes, "who does IR35 apply to?".

Nope - the question (taken from HMRC's workshop).

The client must look through the PSC as if it wasn’t there, and consider what
the employment status would be if they were engaging the contractor directly –
would the contractor be an employee or a self-employed worker?

The fact that your PSC is not in the UK doesn't make a single bit of difference here - it just screams Fraud to HMRC.

I know how I would handle this because being blunt it's obvious but as you are trying to be clever it's only right that I let you try to work out the solution.

[dogquoteplus]

Nope - the question (taken from HMRC's workshop).

The client must look through the PSC as if it wasn’t there, and consider what
the employment status would be if they were engaging the contractor directly –
would the contractor be an employee or a self-employed worker?

The fact that your PSC is not in the UK doesn't make a single bit of difference here - it just screams Fraud to HMRC.

I know how I would handle this because being blunt it's obvious but as you are trying to be clever it's only right that I let you try to work out the solution.

That's a good quote!
That example makes sense, thanks. Although, based on what people say, HMRC is notorious for trying to bring everyone closer to inside IR35.