End client in the USA - QDOS deemed contract inside IR35. Umbrella or LTD company?

[sergeantpluck]

I thought I was leaving the PAYE employee world but I've taken a contract with a client in the USA and QDOS have helpfully told me I am most likely inside IR35. That's OK but seems harsh since I have to buy all my own equipment (they have zero legal UK presence) and can be let go at a moment's notice and they have no control over how complete the work set. Oh well (side rant over).

This will be my main source of income with one smaller client on the side (probably inside IR35 too). Now I'm wondering do I need a £90 a month accountant - I've seen I can use one of these umbrella companies to get paid to and from? I don't want to deal with too much admin but at the same time don't want to waste money either - I'm not sure what the balance is. I'm feeling overwhelmed with the amount of things I have to learn to work for myself (and get taxed like an employee).

[northernladuk]

I thought I was leaving the PAYE employee world but I've taken a contract with a client in the USA and QDOS have helpfully told me I am most likely inside IR35. That's OK but seems harsh since I have to buy all my own equipment (they have zero legal UK presence) and can be let go at a moment's notice and they have no control over how complete the work set. Oh well (side rant over).

None of those are pillars of IR35. They are minor flags at best. Perms in these days can buy their own equipment if they really wanted to, notice periods are minor and the test is Direction and Control, not just control. Main flags are substitution, Direction and control and (lack of) Mutuality of obligation. QDOS must have spotted evidence of these to give you that decision.

This will be my main source of income with one smaller client on the side (probably inside IR35 too). Now I'm wondering do I need a £90 a month accountant - I've seen I can use one of these umbrella companies to get paid to and from? I don't want to deal with too much admin but at the same time don't want to waste money either - I'm not sure what the balance is. I'm feeling overwhelmed with the amount of things I have to learn to work for myself (and get taxed like an employee).

We've quite a few threads about contracting with American companies although I can't remember if Inside has been discussed much.

If you go to google and type in something like 'America contract inside from uk site:forums.contractoruk.com' there should be some interesting reading for you. Mess with the keywords a bit as people might have put USA or US as well.

Sue B used to be part of iPaye and is a bit of an expert in international stuff. You can find her in the members list. Sue B
Also Lucy at Clarity Umbrella is very helpful and might be able to cast some light on what they can offer to a US contract. Either that or just for a general chin wag as she doesn't normally do much. lucyclarityumbrella

[jamesbrown]

Well, if your statements are close to true, then qdos made a mistake. However, perhaps your statements don't reflect the reality. That said, it is very hard to imagine a contract with a US client being inside, in practice, even though it's perfectly possible, in principle. Contrary to what you say, the contractual terms and corresponding working practices must exert a very high degree of control or imply a very high degree of personal service or mutuality, very atypical for such an arrangement.

If you have a company, you need an accountant. If you do not have a company, you do not need an accountant.

[Lance]

QDOS have helpfully told me I am most likely inside IR35.

presumably QDOS have said why, so you go back to the client and get the contract changed or you don't start.

That's it basically. That's all I got.
Don't do this gig until you're happy with the Ts&Cs (unless you're happy as a permietractor)