Non Resident In UK But On UK Payroll

[eek]

To be fair, I think everyone and their dog knows the OP's background because they keep banging on about it in every possible context.

A quick check told me that ComplianceLady has only posted 2 pro FCSA posts between March 15th and today (so I was generously given her the benefit of the doubt given that she hadn't even read the OPs initial post).

[jamesbrown]

Yeah, I'm just pulling your leg, given the OP's infinity posts about their BTLs.

[fridgemagnet1776]

This is a risk for you and the client. Client thinks they're mitigating the risk but they're not. It would be much cleaner to do what we do - have a compliance process for the country (we have one for every country in Europe and some in Asia.) There's 2 specific risks for the client - one is personal taxation - if you aren't paying the correct tax they could be liable and 2nd is establishment rules - some regions having someone do work for you in that country creates a place of establishment for the client.

The world has changed - remote is much more palateable for clients but they are also starting to see that there is more to it than having a laptop and working where you want. There was a good article recently (that I can't find now!) about 3 workers working remotely from different countries and the relative difference in overall tax. Clients are starting to see this and if you want to make it work, in my view, you need to be able to present a much more compliant mechanism (I would say that!)

Thanks for your comment. I agree with others that the OP is a perm and I'm contract, so my comment wasn't entirely relevant. However, I'm interested in what you said about establishment rules and will look into it, but isn't it the case that if I am a separate legal entity and can clearly show I'm outside IR35. (e.g. I have other clients) that this risk is very low? I mean what do you have to do for HMRC to recognise it's a true B2B transaction?

[eek]

Thanks for your comment. I agree with others that the OP is a perm and I'm contract, so my comment wasn't entirely relevant. However, I'm interested in what you said about establishment rules and will look into it, but isn't it the case that if I am a separate legal entity and can clearly show I'm outside IR35. (e.g. I have other clients) that this risk is very low? I mean what do you have to do for HMRC to recognise it's a true B2B transaction?

IR35 works on a contract by contract basis and as of April the status is dependent on the end client's viewpoint - you having other clients is not and never has been a valid IR35 factor.

[ComplianceLady]

A quick check told me that ComplianceLady has only posted 2 pro FCSA posts between March 15th and today (so I was generously given her the benefit of the doubt given that she hadn't even read the OPs initial post).

Sorry I haven't a clue what you're referring to?

[ComplianceLady]

Thanks for your comment. I agree with others that the OP is a perm and I'm contract, so my comment wasn't entirely relevant. However, I'm interested in what you said about establishment rules and will look into it, but isn't it the case that if I am a separate legal entity and can clearly show I'm outside IR35. (e.g. I have other clients) that this risk is very low? I mean what do you have to do for HMRC to recognise it's a true B2B transaction?

IR35 isn't the risk I was talking about. As I understand it you are not a UK tax resident and are not delivering work from the UK so IR35 doesn't apply. But your client's are paying a UK entity for work, that entity is then billing a separate legal entity in a different country for work that you, as an employee, are doing in a different country. The client thinks they're paying a UK company for work but that company is sub-contracting the work abroad. The risks are many if something is not done properly - insurance, VAT, personal tax, corporate tax, deemed employment... the issue is the client thinks they're safe because they're paying you through a UK company. I would imagine they'll have a contract - it's unlikely this arrangement is known to them and so probably breaches the contract.