Contracting from EU

[BynradHics]

I've looked through the posts here and this seems to be a semi-tired discussion, but I haven't found anybody asking actual specifics, mostly people wanting to "work" for their UK company overseas.

I have an equivalent of a limited company in the EU country I am (tax) resident in. I want to establish a limited company in the UK through which I want to accept UK contracts. I then want to subcontract this work to my overseas company. The UK company would have no employees.

Is this possible if the original contracts permits subcontracting? Where I'm from doing this would also mean paying no taxes on the revenue that's being sent overseas, would there be tax implications in the UK?

My main worry is about selling a "worker" instead of a product, and what additional implications this has on subcontracting. Lastly there's the question of IR35; I'd assume that's mostly off-limits as those contracts will usually forbid subcontracting. In the case where it doesn't, would it still apply if the work is being subcontracted overseas? Is it on the UK company then to pay NI even if the end worker isn't in the UK?

[eek]

No agency will touch that will a barge pole.

That doesn't mean you can't get work from the UK but you will need to do all the selling yourself and that won't be easy.

[jamesbrown]

Massively over-complicated. If you want this to work, you’ll need to find clients directly and get them to pay your overseas company or umbrella or you personally, which is pretty routine if you’re in demand. Regarding IR35, it doesn’t work like that. Subcontracting and substitution have no weight when they are without substance, as in your example. The whole point of IR35 is to ignore all intermediaries. However, IR35 will not apply if you are non-UK tax resident and performing 100% of the work outside the UK (although the UK client will need to accept that too, even if factually correct).

[BynradHics]

No agency will touch that will a barge pole.

That doesn't mean you can't get work from the UK but you will need to do all the selling yourself and that won't be easy.

What do agencies put in their contract that would prevent this? No subcontracting?

[northernladuk]

What do agencies put in their contract that would prevent this? No subcontracting?

It's likely that will be in there, or at least with permission but they are much more likely just to move on the next person that doesn't pose a significant risk and complications you do. All your model is doing is putting a sham UK face in front of your EU one which helps no one. The same entity is doing the work and the same risks exist as if you tried applying via your EU one. With so many 'standard' contractors applying for the same roles there is nothing in it for the agency to deal with you.

[BynradHics]

It's likely that will be in there, or at least with permission but they are much more likely just to move on the next person that doesn't pose a significant risk and complications you do. All your model is doing is putting a sham UK face in front of your EU one which helps no one. The same entity is doing the work and the same risks exist as if you tried applying via your EU one. With so many 'standard' contractors applying for the same roles there is nothing in it for the agency to deal with you.

That is a quite different sentiment from the "No agency will touch that will a barge pole." that eek was saying. Just for reference, I worked for a large multinational company in London over the past few years and recently moved out (potentially temporarily). I'd assume having a history in the UK would make this more palatable than a foreign person randomly applying for these contracts.

[Workr International]

Hi BynradHics, I would ask the question why do you need to set up the UK Ltd company in the first place, there is nothing to stop a UK company having a contract with your European company. If however the agency or client you are trying to get the contract via is telling you they will only hold a contract with a UK Ltd company, then you could look into using an international umbrella company, that would be more straight forward that setting up your own UK Ltd. Best of luck.

[eek]

That is a quite different sentiment from the "No agency will touch that will a barge pole." that eek was saying. Just for reference, I worked for a large multinational company in London over the past few years and recently moved out (potentially temporarily). I'd assume having a history in the UK would make this more palatable than a foreign person randomly applying for these contracts.

I don't think NLUK or myself are saying anything different - I was just blunter.

[Fred Bloggs]

Hi BynradHics, I would ask the question why do you need to set up the UK Ltd company in the first place, there is nothing to stop a UK company having a contract with your European company. If however the agency or client you are trying to get the contract via is telling you they will only hold a contract with a UK Ltd company, then you could look into using an international umbrella company, that would be more straight forward that setting up your own UK Ltd. Best of luck.

I guess, quite by coincidence, you can recommend someone? Funny thing that.