Originally posted by Lemondrop
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Relocating back to the UK, starting up as sole trader
Collapse
X
-
merely at clientco for the entertainment -
Originally posted by Lemondrop View PostNothernladuk: I am an independent contractor: I work for myself not through any agents.
Eek: I provide *services* to overseas clients not goods.
Scooterscot: hmmmnnn, I currently pay 42% income tax on all income I earn over about 500 quid (per year!), plus the highly complex tax system is in a language I only understand 75% of so I doubt there can be more obstacles than I already face.
Next question: am I going to face issues with not having paid any UK tax for the last ±15 years? I have of course been paying tax the EU country I was resident in for all those years.Comment
-
Originally posted by eek View PostCheck that with your accountant and your next vat inspector.
Exports outside the eu are included in frs turnover unless it's services being provided. Then you just have the argument as to what is a service where they questioned if a website with a monthly subscription was a service.
I just gave up and shunted the business to another company to ensure I didn't need to worry about it. And if uk sales hit the threshold I will just use standard tax accounting
HM Revenue & Customs: Flat Rate Scheme for VAT
"Your flat rate turnover is all the supplies your business makes..." "Don't include:...any supplies outside the scope of UK VAT"
If a supply is outside of the scope of UK VAT, it is not included in the FRS turnover.Comment
-
Originally posted by ASB View PostEek, that is sort of wrong. But it is the pragmatic view.
Assuming a typical contracting role the supplies are outside the scope. Not zero rated. This does indeed take the out of the frs scheme. Hmrc guidance is quite clear on this.
I entered into a lot of correspondence in order to try and get this confirmed. I failed.
I took the view to keep away from frs. It seemed likely that I might have to end up arguing my case in a tribunal. Current guidance is clearer, so it may be easier.Comment
-
Originally posted by scooterscot View PostComing from the EU to the UK for business has 'go away' written all over it. So many obstacles.The material prosperity of a nation is not an abiding possession; the deeds of its people are.
George Frederic Watts
http://en.wikipedia.org/wiki/Postman's_ParkComment
-
Originally posted by jamesbrown View PostThe rules are quite clear on this. For example:
HM Revenue & Customs: Flat Rate Scheme for VAT
"Your flat rate turnover is all the supplies your business makes..." "Don't include:...any supplies outside the scope of UK VAT"
If a supply is outside of the scope of UK VAT, it is not included in the FRS turnover.
VAT between the UK and the USA is just the first example I found with the explicit statement
If the UK business accounts for VAT on the Flat Rate Scheme, it must include the value of the export in the turnover on which the Flat Rate VAT is paid. This may mean that the business is better off not being on the Flat Rate Scheme.merely at clientco for the entertainmentComment
-
Originally posted by Lemondrop View PostNothernladuk: I am an independent contractor: I work for myself not through any agents.
Eek: I provide *services* to overseas clients not goods.
Scooterscot: hmmmnnn, I currently pay 42% income tax on all income I earn over about 500 quid (per year!), plus the highly complex tax system is in a language I only understand 75% of so I doubt there can be more obstacles than I already face.Comment
-
Originally posted by eek View PostBut that is different from how it used to be and I can't find the date of the change..
VAT between the UK and the USA is just the first example I found with the explicit statementComment
-
Originally posted by eek View PostCheck that with your accountant and your next vat inspector.
Exports outside the eu are included in frs turnover unless it's services being provided. Then you just have the argument as to what is a service where they questioned if a website with a monthly subscription was a service.
I just gave up and shunted the business to another company to ensure I didn't need to worry about it. And if uk sales hit the threshold I will just use standard tax accounting
You should certainly be checking this as place of supply rules can be complicated but bespoke software development and consultancy almost certainly is a service.
Even if you're selling pre built software, in the age of digital distribution it's still considered an electronically supplied service rather than a good.
An accountant should be able to help with this.Last edited by TheCyclingProgrammer; 22 June 2014, 18:42.Comment
-
Originally posted by TheCyclingProgrammer View PostLike you said, services are not exports and for most of us providing consultancy and software development we are providing services.
You should certainly be checking this as place of supply rules can be complicated but bespoke software development and consultancy almost certainly is a service.
Even if you're selling pre built software, in the age of digital distribution it's still considered an electronically supplied service rather than a good.
An accountant should be able to help with this.
For example:
"4.5 Exports of computer software
Exports of standard ('normalised') computer software packages are regarded as
supplies of goods, which may be zero-rated on export from the EC, subject to the
conditions in this notice.
Supplies of:
• specific items of software tailored to the individual requirements
of a company, and
• software transmitted by phone or other data network
are generally regarded as supplies of services and are therefore outside the scope of
this notice. You can find further information in Notice 741A Place of supply of
services."Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment