Brexit/IR35 and Working Abroad

[MasterBait]

Situation I'm in: MyLtdCo --> direct (no agency) contract with Dutch consultancy (small, only local presence) who have contract with Swedish multinational (with presence in the UK). The work I'm doing for them is all over Europe. I'm based in the UK and UK taxpayer.
Spoke to QDOS the other day about my situation and they think that my limited company would be responsible for determining your IR35 status and also in the event of an enquiry I would be responsible for any IR35 tax liabilities, interest and penalties.

[jamesbrown]

Situation I'm in: MyLtdCo --> direct (no agency) contract with Dutch consultancy (small, only local presence) who have contract with Swedish multinational (with presence in the UK). The work I'm doing for them is all over Europe. I'm based in the UK and UK taxpayer.
Spoke to QDOS the other day about my situation and they think that my limited company would be responsible for determining your IR35 status and also in the event of an enquiry I would be responsible for any IR35 tax liabilities, interest and penalties.

As long as the supply chain is fully overseas, it’s BAU. Fully overseas means the company has no UK connection. No UK connection means no UK residency and no UK permanent establishment. If anyone in the supply chain has a UK connection, they are the Fee Payer.

[moniker]

As long as the supply chain is fully overseas, it’s BAU. Fully overseas means the company has no UK connection. No UK connection means no UK residency and no UK permanent establishment. If anyone in the supply chain has a UK connection, they are the Fee Payer.

“UK presence” would mean that the Swedish (for example) subsidiary of the multinational also has an office in the UK which would be highly unlikely as there would most likely instead be a separate UK subsidiary (a separate legal entity) of the group that has absolutely nothing to do with the specific project at hand.

[jamesbrown]

“UK presence” would mean that the Swedish (for example) subsidiary of the multinational also has an office in the UK which would be highly unlikely as there would most likely instead be a separate UK subsidiary (a separate legal entity) of the group that has absolutely nothing to do with the specific project at hand.

Thanks, Mystic Meg .

The legislative term is "UK connection", not "UK presence". Whether the company in the supply chain with a UK connection has anything to do with the project is completely irrelevant. A "UK connection" is defined in Chapter 8 of Part 2 of ITEPA in section 60I.

60I When a person has a UK connection for a tax year

(1)For the purposes of this Chapter, a person has a UK connection for a tax year if (and only if) immediately before the beginning of that tax year the person—
(a)is resident in the United Kingdom, or
(b)has a permanent establishment in the United Kingdom.
(2)In this section “permanent establishment”—
(a)in relation to a company, is to be read (by virtue of section 1007A of ITA 2007) in accordance with Chapter 2 of Part 24 of CTA 2010, and
(b)in relation to any other person, is to be read in accordance with that Chapter but as if references in that Chapter to a company were references to that person.

[z1z0u]

Hi,
I'm in a situation and would need help from whoever is more experienced - I would be very grateful.
I have never contracted before so apologies for the basic questions and assumptions I will do.

I will be offered a full remote contract (freelance or specific project contract for duration of the assignment - 11 months) for a large international org via a talent acquisition partner in belgium. I will remain resident in UK and won't spend a day Belgium. I can work legally there with my EU passport (and stay in UK with my pre-settled status). They asked for my LTD details to write the contract but I'm still unsure it's the right path. From what I read so far:
1- I will have to fill the LIMOSA because not resident in belgium that will provide me a tax, social security and VAT number. But I believe I don't need to pay any taxes as I will be paying them in UK
2- Is it correct to say that depending on my contract being In or Out IR35 should guide me choosing between creating a UK LTD co or a (preferably FCSA member) umbrella company? (If Out then LTD, if In Umbrella)

Can anyone offer guidance or relevant accountant contacts plz?

[Eirikur]

Hi,
I'm in a situation and would need help from whoever is more experienced - I would be very grateful.
I have never contracted before so apologies for the basic questions and assumptions I will do.

I will be offered a full remote contract (freelance or specific project contract for duration of the assignment/11 months FTC) for a large international org via a talent acquisition partner in belgium. I will remain resident in UK and won't spend a day Belgium. I can work legally there with my EU passport (and stay in UK with my pre-settled status). They asked for my LTD details to write the contract but I'm still unsure it's the right path. From what I read so far:
1- I will have to fill the LIMOSA because not resident in belgium that will provide me a tax, social security and VAT number. But I believe I don't need to pay any taxes as I will be paying them in UK
2- Is it correct to say that depending on my contract being In or Out IR35 should guide me choosing between creating a UK LTD co or a (preferably FCSA member) umbrella company? (If Out then LTD, if In Umbrella)

Can anyone offer guidance or relevant accountant contacts plz?

If it is an FTC you don't need a Ltd and IR35 doesn't apply. Yu will be on the client's payroll like an employee and Pay Belgian taxes (50+%)

[z1z0u]

If it is an FTC you don't need a Ltd and IR35 doesn't apply. Yu will be on the client's payroll like an employee and Pay Belgian taxes (50+%)

It is stated that: "this is a contracting position, with the possibility of an extension after the end date"
I "will receive a contract via their partner. Their partner can offer me a contract of indefinite duration, a project contract for the duration of the assignment at the end client or a freelance contract."

Why would I pay Belgian taxes if I'm just exporting my (consultancy and SME) services and already pay my taxes where I'm resident (in UK)?

[Lance]

It is stated that: "this is a contracting position, with the possibility of an extension after the end date"
I "will receive a contract via their partner. Their partner can offer me a contract of indefinite duration, a project contract for the duration of the assignment at the end client or a freelance contract."

Why would I pay Belgian taxes if I'm just exporting my (consultancy and SME) services and already pay my taxes where I'm resident (in UK)?

an FTC is basically an employment contract.
If you are using a UK LTD. then it's not an FTC.
But you did say FTC in your post.

[Eirikur]

It is stated that: "this is a contracting position, with the possibility of an extension after the end date"
I "will receive a contract via their partner. Their partner can offer me a contract of indefinite duration, a project contract for the duration of the assignment at the end client or a freelance contract."

Why would I pay Belgian taxes if I'm just exporting my (consultancy and SME) services and already pay my taxes where I'm resident (in UK)?

Do you get paid an hourly or daily rate or will you get paid a salary every month?

[z1z0u]

an FTC is basically an employment contract.
If you are using a UK LTD. then it's not an FTC.
But you did say FTC in your post.

Apologies for the confusion.

Do you get paid an hourly or daily rate or will you get paid a salary every month?

Hourly rate, 40 hours a week but no specifics about start/finish times, lunch break times and duration. It is for a particular project and I will use my own equipment (laptop).