Hi All,
First post here so hoping the experts on here can help. Hopefully not as complicated as I fear it is!
Background, I currently work for a UK company as an employee, remotely from Dubai for the last 2 months, and my employment will come to a stop in a couple of weeks. I have now been offered a contract (still to decide if FTC, limited company, agency etc.). I've never contracted before so do not have a limited company set up yet. I have already attained an NT code from HMRC as we are non-residents, and intend to stay out of the UK for a few years at least. When I move companies (say from current employer to my own LTD company hypothetically) in Nov, does that change my tax code automatically? I hope it doesn't as my Non-resident status doesn't change, so not sure why the NT code would change as a result of just getting a P45 from current firm.
The proposed contract also requires me (not in writing yet) to be in the UK physically for ~30 days a year (a week every 2 months or so). I've checked the criteria for residency test and I'll be ok from this aspect (<90 days in the UK + will work <30 days from the UK too every year).
My questions are essentially two pronged. One to do with the best way to contract (FTC, Ltd company etc), and the second re: IR35.
- Considering I'm already on an NT code for the last couple of months, what's the best way forward with this contract? Do I ask for an FTC, or set up my own limited company, or an agency route is better?
- In my simplistic head, if I were to start a ltd company, and try to draw down most of the monthly contractor income as salary, I wouldn't be taxed through PAYE as I'm on an NT code and will continue to be? Don't want to take big dividends, as if we come back to the UK within 5 years, we'll be liable to pay for such gains from what I recall.
- I'm not even sure about IR35 in this instance, but I'm hoping since I'm non resident, it doesn't apply. However, my company is a mid-large company, and hence will probably have to deduct at their end if this role is deemed inside IR35.
-Is there anything I can do to steer them in the direction of outside IR35? If deemed inside, is there anything I can do to claim back the tax paid since I'm non-resident?
Since there is no income tax in Dubai (double taxation agreement as well), I only have to ensure I get the UK leg right.
If there's anything else I need to be wary of, please let me know too.
Appreciate the help in advance!
Many thanks
Pratt
First post here so hoping the experts on here can help. Hopefully not as complicated as I fear it is!
Background, I currently work for a UK company as an employee, remotely from Dubai for the last 2 months, and my employment will come to a stop in a couple of weeks. I have now been offered a contract (still to decide if FTC, limited company, agency etc.). I've never contracted before so do not have a limited company set up yet. I have already attained an NT code from HMRC as we are non-residents, and intend to stay out of the UK for a few years at least. When I move companies (say from current employer to my own LTD company hypothetically) in Nov, does that change my tax code automatically? I hope it doesn't as my Non-resident status doesn't change, so not sure why the NT code would change as a result of just getting a P45 from current firm.
The proposed contract also requires me (not in writing yet) to be in the UK physically for ~30 days a year (a week every 2 months or so). I've checked the criteria for residency test and I'll be ok from this aspect (<90 days in the UK + will work <30 days from the UK too every year).
My questions are essentially two pronged. One to do with the best way to contract (FTC, Ltd company etc), and the second re: IR35.
- Considering I'm already on an NT code for the last couple of months, what's the best way forward with this contract? Do I ask for an FTC, or set up my own limited company, or an agency route is better?
- In my simplistic head, if I were to start a ltd company, and try to draw down most of the monthly contractor income as salary, I wouldn't be taxed through PAYE as I'm on an NT code and will continue to be? Don't want to take big dividends, as if we come back to the UK within 5 years, we'll be liable to pay for such gains from what I recall.
- I'm not even sure about IR35 in this instance, but I'm hoping since I'm non resident, it doesn't apply. However, my company is a mid-large company, and hence will probably have to deduct at their end if this role is deemed inside IR35.
-Is there anything I can do to steer them in the direction of outside IR35? If deemed inside, is there anything I can do to claim back the tax paid since I'm non-resident?
Since there is no income tax in Dubai (double taxation agreement as well), I only have to ensure I get the UK leg right.
If there's anything else I need to be wary of, please let me know too.
Appreciate the help in advance!
Many thanks
Pratt
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