New to contracting - oversea client - in/out IR35 - umbrella/ltd - uk/europe

[Abbot]

I’m intrigued. I understand equity. But I’ve never come across a contract with holiday pay in it. What’s the logic here?

[jamesbrown]

I’m intrigued. I understand equity. But I’ve never come across a contract with holiday pay in it. What’s the logic here?

That there is an employer who wants an employee...

[0xsrwea31]

I’m intrigued. I understand equity. But I’ve never come across a contract with holiday pay in it. What’s the logic here?

They just don't have a UK presence but would like to give me all the benefits of a normal employee.

[0xsrwea31]

Another point that we haven't really discussed here is that there are some umbrella companies like <mod snip> that claim to be super tax-efficient. I've searched the forum but couldn't really find anything about that. Does anyone have any experience with them?

[Whitelime]

Another point that we haven't really discussed here is that there are some umbrella companies like <mod snip> that claim to be super tax-efficient. I've searched the forum but couldn't really find anything about that. Does anyone have any experience with them?

Don't be tempted by anything "super tax-efficient". Look into the HMRC Scheme Enquiries section of the forum and you'll get the picture.

[northernladuk]

Another point that we haven't really discussed here is that there are some umbrella companies like<mod snip> that claim to be super tax-efficient. I've searched the forum but couldn't really find anything about that. Does anyone have any experience with them?

Not too sure what search you are using but put 'tax efficient umbrella site:forums.contractoruk.com' in to google and you'll get a raft of warning posts. There is no legal thing as a super tax efficient umbrella and we, as mentioned, an entire sub forum full of people paying the price for falling for it.

[NotAllThere]

Since they are not based in the UK, I could potentially evaluate the idea of moving abroad and working from there. Does anyone have any suggestions/experience on where this would be beneficial from a tax perspective?

Find a country that has lower tax and lower other employment related deductions - and will permit you to work in that way.

[0xsrwea31]

You make a significant mistake, client considers you liable, client brings a legal case in the relevant jurisdiction, you lose, which means you probably lose everything, house, everything. In other words, limited liability means something. I only deal with US clients through my company and with all relevant insurance in place for the jurisdiction in which the contract is written.

Do you know if it's possible to get personal liability insurance as a sole trader? Maybe I could just get that but still be able to save in terms of Employer NI. I'm seeing several websites that provide that for just a few pounds a month.

Find a country that has lower tax and lower other employment related deductions - and will permit you to work in that way.

Do you have any recommendations? I've heard many people are moving to the canary islands but the rates don't seem that low. But maybe I'm missing something?

[jamesbrown]

Sure, you can always get insurance, but insurance is expensive for a high amount of cover if the jurisdiction and/or governing law is a US state and insurance is always partial/limited, whereas limited liability is a hard backstop.

[0xsrwea31]

Update: the client is not ok with me using an umbrella company. What is the best path forward?

What's the difference in terms of taxes etc between being a sole trader and using the DPNI scheme?