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Inside IR35 Contract and Staying out of UK

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    Inside IR35 Contract and Staying out of UK

    Hello!

    Two questions:
    1. I have an inside IR35 contract. If I stay out of UK for more than 180 days, I need to inform HMRC. If I informed HMRC will that information, i.e., the fact that I am outside UK for tax purposes be available for my Umbrella company and therefore, would my Umbrella company get that information and pass it on to my client leading to problems for me? I use a dedicated VPN and have a rental agreement with a friend of mine that I am subletting their place and using my own device.
    2. If I am not regarded as a UK Resident for Tax purposes but still working as an inside IR35 contractor, what would happen to my NI contributions? I understand that I would not be in the NHS list as I am not a resident, but would my NI contributions still need to be paid (I am perfectly happy paying it as I am grateful for what NHS does even though, I rarely go to the hospitals / GP / A&E and there is a good chance I would retire elsewhere and not be a dependent upon NHS). Someone was saying that if I am not a UK Tax resident then, when I return to UK I would have to pay the NHS premium for a 6 months (someone said for 2 years!).
    Kind Regards,
    DC



    #2
    Not sure I understand - is the work in the UK? If it is you’ll have to explain to the tax authority of your resident country that you’re already paying tax in the UK.

    Inside means that you pay NI - it doesn’t matter where you are living, HMRC don’t care provided that you’re paying it.

    If the work is out of the UK, why on Earth are you on an inside contract?? (Oh, and the resident tax authority will still need to be told.)
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      Originally posted by cojak View Post
      Not sure I understand - is the work in the UK? If it is you’ll have to explain to the tax authority of your resident country that you’re already paying tax in the UK.

      Inside means that you pay NI - it doesn’t matter where you are living, HMRC don’t care provided that you’re paying it.

      If the work is out of the UK, why on Earth are you on an inside contract??
      I doubt you have the whole story. I suspect the question is really about how do I do this work and not pay anybody any tax?
      Public Service Posting by the BBC - Bloggs Bulls**t Corp.
      Officially CUK certified - Thick as f**k.

      Comment


        #4
        You would need to get an NT tax code, but your employer (umbrella) would still make the employer deductions.

        Comment


          #5
          Originally posted by Divya Chandrakumar View Post
          would my Umbrella company get that information and pass it on to my client leading to problems for me?
          If you don't want your client to know that you're outside the UK, that's a red flag. E.g. there might be data protection issues. My advice is to either:
          a) Be honest with the client.
          b) Stay in the UK.
          c) End the contract.

          Comment


            #6
            Of course, bear in mind that it's actually quite hard to become non-resident for tax purposes with the SRT, so you'd better be sure you are first.

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              #7
              Originally posted by cojak View Post
              Not sure I understand - is the work in the UK? If it is you’ll have to explain to the tax authority of your resident country that you’re already paying tax in the UK.

              Inside means that you pay NI - it doesn’t matter where you are living, HMRC don’t care provided that you’re paying it.

              If the work is out of the UK, why on Earth are you on an inside contract?? (Oh, and the resident tax authority will still need to be told.)
              Sorry, if the question was not clear.
              1. Yes, the work is for a charity / non-profit organisation based in UK.
              2. OK, so, I am staying in India which means, that I just need to tell India's Tax Authorities that I am already paying tax in UK? Understood.
              3. No, no - the work is fully remote and I was living in the UK (as I am a naturalised citizen of UK). I moved back to India for some personal commitments (to take care of family).
              4. The Tax Resident Authority? Is it HMRC that needs to be told about the UK Tax Resident Status?
              I will inform HMRC, but I do not want to run the risk of informing HMRC and them updating my umbrella company who updates my client and run into problems.

              Instead, I would just move back to UK - stay for 181 days and then move back to India for less than 180 days and continue like that.

              Comment


                #8
                Originally posted by hobnob View Post

                If you don't want your client to know that you're outside the UK, that's a red flag. E.g. there might be data protection issues. My advice is to either:
                a) Be honest with the client.
                b) Stay in the UK.
                c) End the contract.
                No, they are fine with me being outside the UK. Permanent employees as well as Contractor's regularly go out of UK and work although, this is usually for small duration of time such as for 4-5 weeks. We connect via VPN and there is nothing that we can do without VPN connection, so the client is perfectly fine with working from India.

                My concern is more of a impact w.r.t longer period's of time.

                Data Protection issues have been discussed and the client is completely aware of it - there is no issue and nothing is being hidden in terms of client not being aware w.r.t data protection / GDPR etc.,

                Comment


                  #9
                  Originally posted by Divya Chandrakumar View Post

                  Sorry, if the question was not clear.
                  1. Yes, the work is for a charity / non-profit organisation based in UK.
                  2. OK, so, I am staying in India which means, that I just need to tell India's Tax Authorities that I am already paying tax in UK? Understood.
                  3. No, no - the work is fully remote and I was living in the UK (as I am a naturalised citizen of UK). I moved back to India for some personal commitments (to take care of family).
                  4. The Tax Resident Authority? Is it HMRC that needs to be told about the UK Tax Resident Status?
                  I will inform HMRC, but I do not want to run the risk of informing HMRC and them updating my umbrella company who updates my client and run into problems.

                  Instead, I would just move back to UK - stay for 181 days and then move back to India for less than 180 days and continue like that.
                  In that case the problem is with your contract and the end-client as I suspect that you’ll be in breach of contract and they will find out soon enough once they realise that you’re not available in the afternoons. That time difference is going to be quite punishing quite quickly.

                  Edit : ignore me as you’ve explained that in the above post.
                  "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
                  - Voltaire/Benjamin Franklin/Anne Frank...

                  Comment


                    #10
                    Originally posted by Fred Bloggs View Post

                    I doubt you have the whole story. I suspect the question is really about how do I do this work and not pay anybody any tax?
                    No, I am perfectly happy paying all the tax, NI contribution, Apprenticeship Levy, Employer Contribution and anything else that is mandated my law.

                    This is NOT to avoid paying taxes.

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