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Offshore client, UK resident, EU Ltd, IR35?

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    Offshore client, UK resident, EU Ltd, IR35?

    Here's the scenario:
    I'm UK based, my client is in the EU.
    What would happen IR35-wise, if I create an EU based Ltd (say Estonia, or Bulgaria), and use that to work with the end client? I suppose corp tax would be attributed to the country where the Ltd resides, but what about the IR35 status? Would it even apply?

    Btw, the client is offshore, but does have a UK presence (office).

    #2
    Originally posted by dogquoteplus View Post
    Here's the scenario:
    I'm UK based, my client is in the EU.
    What would happen IR35-wise, if I create an EU based Ltd (say Estonia, or Bulgaria), and use that to work with the end client? I suppose corp tax would be attributed to the country where the Ltd resides, but what about the IR35 status? Would it even apply?
    Won't make any difference the money arrives in the UK and as you are sat in the UK you will need to pay tax on it.
    merely at clientco for the entertainment

    Comment


      #3
      Originally posted by eek View Post

      Won't make any difference the money arrives in the UK and as you are sat in the UK you will need to pay tax on it.
      Corp tax will be paid to the country where the Ltd is registered.
      Any declared dividends will have to be taxed in the UK, by the UK bands (7.5%, 32.5% etc).

      Will the IR35 status even apply to me as the company director? That's the question.

      Comment


        #4
        Originally posted by dogquoteplus View Post

        Corp tax will be paid to the country where the Ltd is registered.
        Any declared dividends will have to be taxed in the UK, by the UK bands (7.5%, 32.5% etc).

        Will the IR35 status even apply to me as the company director? That's the question.
        That's fraud

        For a small company's the company's location is based on the location of it's main officer which is you sat in the UK.

        This is why if you went to work in Germany, Holland or Switzerland we tell you that the tax needs to be paid where you live.
        merely at clientco for the entertainment

        Comment


          #5
          Originally posted by dogquoteplus View Post
          Here's the scenario:
          I'm UK based, my client is in the EU.
          What would happen IR35-wise, if I create an EU based Ltd (say Estonia, or Bulgaria), and use that to work with the end client? I suppose corp tax would be attributed to the country where the Ltd resides, but what about the IR35 status? Would it even apply?

          Btw, the client is offshore, but does have a UK presence (office).
          Very few agents will work with a non UK company. Might be an option for this one client (questionable though) but isn't really feasible longer term.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by northernladuk View Post

            Very few agents will work with a non UK company. Might be an option for this one client (questionable though) but isn't really feasible longer term.
            Agent and client are non-UK. I don't think they care where the PSC is based TBH.

            Comment


              #7
              Originally posted by eek View Post

              That's fraud
              That's bold.

              Comment


                #8
                Originally posted by dogquoteplus View Post

                That's bold.
                Nope it's accurate given that you are sat in the UK and you are earning money from the work are doing in the UK.
                merely at clientco for the entertainment

                Comment


                  #9
                  Originally posted by eek View Post

                  Nope it's accurate given that you are sat in the UK...
                  It's a generalization, in case the end client deemed that the contract falls outside IR35 for all intends and purposes, despite the company being based offshore.
                  The question still remains. Would the end client still need to make an IR35 assessment?

                  Unless you mean, utilizing an EU company as a UK resident to work with EU clients is fraud?

                  Comment


                    #10
                    Originally posted by dogquoteplus View Post

                    It's a generalization, in case the end client deemed that the contract falls outside IR35 for all intends and purposes, despite the company being based offshore.
                    But you are trying to create a contrived structure to gain a tax advantage that isn't required or you use currently.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment

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