Paying my own ers NI? Sanity check.

[eek]

(a) Blimey!
(b) Thanks a million for your advice! It's really appreciated

FWIW, my accountant is going down the "operating a deemed payment yourself" route on the basis that the supply chain is entirely overseas, as in MYCO -> OVERSEAS INTERMEDIARY -> OVERSEAS END CLIENT which in turn is owned by OVERSEAS HOLDING COMPANY

The UK-present part of client is not the end client, it's another separate company who are also wholly owned by OVERSEAS HOLDING COMPANY, therefore UKCO is not at the top of the supply chain or even in the supply chain, which is why (to me) it beggars belief that they could even be involved!

the problem for the subsidy is that they exist and therefore HMRC can blame them even if they aren’t even aware of the work being done

its not fair but you can see why HMRC will use anyone they can vaguely hold responsible if money is involved

[jamesbrown]

(a) Blimey!
(b) Thanks a million for your advice! It's really appreciated

FWIW, my accountant is going down the "operating a deemed payment yourself" route on the basis that the supply chain is entirely overseas, as in MYCO -> OVERSEAS INTERMEDIARY -> OVERSEAS END CLIENT which in turn is owned by OVERSEAS HOLDING COMPANY

The UK-present part of client is not the end client, it's another separate company who are also wholly owned by OVERSEAS HOLDING COMPANY, therefore UKCO is not at the top of the supply chain or even in the supply chain, which is why (to me) it beggars belief that they could even be involved!

You might want to correct your OP then. You're now saying that the end client doesn't have a UK PE, rather some other company that owns the end client has a UK PE. You'd have to look into whether the foreign end client has a UK PE because you don't seem very sure (given that it has changed between the OP and this post).

Either way, I wouldn't trust your accountant on this - they are not qualified to make judgements about specialist tax issues (the clue's in the name), even if they have a better general knowledge than the average contractor. As I said earlier, on the one hand the risk is mainly for the supply chain above you, but not entirely. You could ask the foreign client whether they have a UK PE - they should be able to answer that straightforwardly. If they do, then the UK PE will be pursued by HMRC in the first instance for the failure of the supply chain to correctly operate the OPWR.

To correct an earlier post I made, I think it's actually the foreign client that issues the SDS and operates payroll when there's a UK PE, not the UK PE (but the UK PE is certainly liable, for obvious reasons) - crazy, but there you go.

[Platypus]

You might want to correct your OP then.

I've updated my original post. I'd welcome any additional comments you have. Plus I'm getting additional professional advice. Thanks again!

[jamesbrown]

I've updated my original post. I'd welcome any additional comments you have. Plus I'm getting additional professional advice. Thanks again!

Sounds like you have it covered then. My advice is pretty much the same, though - find a UK umbrella. There is no opportunity to "save" on any payroll tax (including ErNI) if the supply chain is working properly - that's the point.

[Platypus]

but speak to Lucy at Clarity and see if she can help

Sounds like you have it covered then. My advice is pretty much the same, though - find a UK umbrella. There is no opportunity to "save" on any payroll tax (including ErNI) if the supply chain is working properly - that's the point.

Thanks again cukkers, I have spoken to Lucy at Clarity. She was hugely helpful and clearly knows her stuff.

[lucyclarityumbrella]

Thanks again cukkers, I have spoken to Lucy at Clarity. She was hugely helpful and clearly knows her stuff.

Thanks Platypus lovely to speak with you and you are more than welcome