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

[NotAllThere]

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?

The NI scheme is different. You pay more through DPNI.

[0xsrwea31]

Isn't the difference just in the NI class I would be paying? It sounds like as a DPNI, I'd pay Class 1 employee while, as a sole trader, I'd pay Class 2 and 4. Overall, the amount is very similar as far as I understood.

[cojak]

Another point that we haven't really discussed here is that there are some umbrella companies like 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?

I have removed your link because it’s only super efficient for the provider, NOT the contractor using them.

But we do have posters with experience with them, they are all in this forum: https://forums.contractoruk.com/hmrc-scheme-enquiries/

[0xsrwea31]

In the contract, it states the following:

INDEPENDENT CONTRACTOR. You agree that you are an independent contractor, and not our agent or employee. You don’t have the authority to bind us, by contract or otherwise. You will perform the Services under our general direction, but you will determine, in your sole discretion, the manner and means by which you accomplish the Services.

Should I consider the employment to be outside IR35 despite receiving stock options etc?

[Lance]

In the contract, it states the following:


Should I consider the employment to be outside IR35 despite receiving stock options etc?

receiving stock options?

I think you're being taken for a ride. Forget IR35/tax for a minute.

- Are they going to pay you properly? By properly I mean market value ££££ not options.
- Why do they want you when they have no presence in the UK?
- What does being in the UK add that they don't already have? And why don't they simply establish a UK/EU wing of the business?
- Why would they not consider an umbrella? Seems very odd to avoid the simplest legal way to hire a UK worker.

There's summat fishy here.... The stock options set off my spidey-sense as that's just jam tomorrow.

[northernladuk]

In the contract, it states the following:


Should I consider the employment to be outside IR35 despite receiving stock options etc?

It's not employment. You need to go back and learn the fundamentals which will make this ride a little smoother.