IR35 when contracting for foreign business

[Redpanda]

I am an experienced programmer /analyst of 40 years experience. I have several years experience of IT contracting, but have been happily permanently employed for the past 15 years. Recently, a seemingly lucrative contract opportunity has come up for which I am ideally suited. The contract would be with a foreign employer which I could fulfil from home in the UK. Would I be caught be IR35, or would working for a foreign business make it possible to avoid? Any guidance would be much appreciated.

[hobnob]

Welcome to the website. It's worth doing a bit of reading, particularly this thread (a sticky post in the "Accounting/Legal" forum):
Be careful if you take Outside IR35 contracts - Contractor UK Bulletin Board

In brief, if the client is fully overseas (no UK branch office) then chapter 8 of ITEPA applies and you're responsible for the SDS. That doesn't mean that you can ignore IR35, because the 3 pillars still apply (MoO, RoS, D&C).

[JHamp82]

I am an experienced programmer /analyst of 40 years experience. I have several years experience of IT contracting, but have been happily permanently employed for the past 15 years. Recently, a seemingly lucrative contract opportunity has come up for which I am ideally suited. The contract would be with a foreign employer which I could fulfil from home in the UK. Would I be caught be IR35, or would working for a foreign business make it possible to avoid? Any guidance would be much appreciated.

If your client is outside the UK with no UK presence then you are responsible for determining your IR35 status. Best speaking to an accountant and get your contract reviewed by a professional.

Thanks.

[jamesbrown]

If you’re thinking about your foreign client as your employer, you are not off to the best start. There are some guides to the right ——>

If the supply chain is fully overseas, you will be responsible for assessing IR35 status, which means that your contract and working practices should be reviewed by a professional. Your company will be liable. There is no Status Determination Statement in this scenario.

Make sure your PI insurance covers the jurisdiction and governing law in which the contract is written. Again, read the guides to the right because there is a lot you won’t know.

[hobnob]

There is no Status Determination Statement in this scenario.

That's interesting - does the same apply with the small company exemption? Presumably your company should have some kind of documentation to say "I have reviewed this contract and believe that it's inside/outside"; is there any particular format, or will anything do?

(All my contracts have been public sector post 2017, so I haven't been in this situation yet.)

[jamesbrown]

That's interesting - does the same apply with the small company exemption? Presumably your company should have some kind of documentation to say "I have reviewed this contract and believe that it's inside/outside"; is there any particular format, or will anything do?

(All my contracts have been public sector post 2017, so I haven't been in this situation yet.)

Yes, the SDS is a requirement under Chapter 10, not Chapter 8. Anything under Chapter 8 is a self-assessment for which there is no particular format or record keeping requirement (but, obviously, you should get a contract and working practices review and record it alongside evidence of your compliant working practices gathered while completing the contract).