UK Limited company providing outside IR35 services to a European country based client

[luxCon]

Anyone with the experience of providing services to a European based company and getting paid from outside of the UK?

I appreciate if anyone with personal experience can share any information and things to watch out for.

Thanks

Ps. Please do not reply with a talk to an accountant response

[sadkingbilly]

Anyone with the experience of providing services to a European based company and getting paid from outside of the UK?

I appreciate if anyone with personal experience can share any information and things to watch out for.

Thanks

Ps. Please do not reply with a talk to an accountant response

OK.

[ladymuck]

I provide services to a Swiss company. Invoices are in USD. Payment is made to a USD account with Wise.

Your question is so vague as to make it almost impossible to answer. What exactly are you asking?

[luxCon]

I provide services to a Swiss company. Invoices are in USD. Payment is made to a USD account with Wise.

Your question is so vague as to make it almost impossible to answer. What exactly are you asking?

Thank you. It's not a firm offer yet, so I am just trying to understand if I am getting into my anything unusual I need to further consider outside of the usual UK client consideration. That's why I sound vague as I have no real knowledge or details to focus on. Trying to find out what issues I need to watch out for and ask and address with the EU client to address to make my life easier prior to signing contract.

From what I gather, EU customer invoices are zero UK Vat, other than that as you say, invoice can be in GBP, EUR as per contract and I do the currency conversion if needed.

In your experience, are there any complications to consider and anything unusual with HMRC and reporting?

Thanks

[ladymuck]

Nothing untoward discovered yet.

No VAT charged. The sales still get reported on your VAT returns but if the proper treatment is applied by your accounting software it will all be fine. My accountant didn't raise any issues or concerns when doing my year end accounts.

Be mindful of which country has legal jurisdiction over the contract and make sure you understand what the process would be in that country in the event of non payment. Check your PI insurance is valid.

If you invoice in something other than GBP you'll have to do regular invoice revaluations. FreeAgent handles that and automatically does the conversions and realised gain/loss journals.

[jamesbrown]

Thank you. It's not a firm offer yet, so I am just trying to understand if I am getting into my anything unusual I need to further consider outside of the usual UK client consideration. That's why I sound vague as I have no real knowledge or details to focus on. Trying to find out what issues I need to watch out for and ask and address with the EU client to address to make my life easier prior to signing contract.

From what I gather, EU customer invoices are zero UK Vat, other than that as you say, invoice can be in GBP, EUR as per contract and I do the currency conversion if needed.

In your experience, are there any complications to consider and anything unusual with HMRC and reporting?

Thanks

It depends on the place of supply rules (feel free to read them), but B2B supplies will generally be outside of the scope of UK VAT (i.e., UK VAT does not apply) and this is not a pedantic difference. If you want, you can mention the customer's reverse charge obligation on your invoices (e.g., "reverse charge applies"), but the reverse charge narrative isn't mandatory. You will need to include the sale in Box 6 (total value of sales) of your VAT return, as normal.

Make sure your business (PI) insurance covers you for this work. Make sure you understand your contract before you sign it, including any clauses related to governing law and jurisdiction and what this means for you if the work goes tits up and the client refuses to pay.

You will need to be careful w/r to IR35, notably whether the client has a UK branch or PE, i.e., a physical presence in the UK. In that case, the Ch. 10 rules apply, which will be all sorts of confusing for your client.

[jamesbrown]

Ps. Please do not reply with a talk to an accountant response

P.S. Good luck with that, NLUK doesn't discriminate.

[WTFH]

Things that make a difference:
1. What country is the contract from (I did quite a bit of work in Europe on Swiss contracts)
2. What country is the work going to be done? (You may say it’s WFH, but is there any on-site expected?)
3. What currency will you be raising the invoices in?
4. Does your current business bank account include multi-currency at reasonable rates?
5. Is there an agency or other party involved between you and the client?

[northernladuk]

Have you asked your accountant?

[Eirikur]

Yes I'm providing these services now and have done it before