I have been offered a contract for £100k+ per year to provide IT services internationally. Is it necessary to pay Value-Added Tax (VAT) in this case? Additionally, what is the most efficient way to pay myself, as a director, and my sibling, who is serving as the company admin or secretary, through my limited company? Can we declare expenses if we have acquired IT services from a foreign country ( lets say for 50K pounds)?
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VAT scheme if providing services abroad and most efficent to save tax outside ir35?
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Originally posted by GGWP View PostI have been offered a contract for £100k+ per year to provide IT services internationally. Is it necessary to pay Value-Added Tax (VAT) in this case? Additionally, what is the most efficient way to pay myself, as a director, and my sibling, who is serving as the company admin or secretary, through my limited company? Can we declare expenses if we have acquired IT services from a foreign country ( lets say for 50K pounds)? -
Read the guides over on the right ---->
VAT is based on place of supply rules. The general rule for B2B supplies of services is that the place of supply is where the customer is based. In general, a supply of services to an overseas customer will be outside of the scope of UK VAT. You will need to assess your liability to charge VAT in relation to the place of supply rules:
https://www.gov.uk/guidance/vat-how-...ly-of-services
Paying your sibling sounds like a bad idea.
On expenses, I don't know, can you? YourCo can purchase whatever it wants. As to whether you'll get tax relief depends on whether the expenses meet the wholly and exclusively test. For some reason, your example of £50k sounds a bit dodgy, not unlike your proposal to pay your sibling. What IT professional incurs expenses of £50k and pays their sibling?
Anyway, read the guides on the right, there's obviously a vast amount you don't yet know.
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Originally posted by GGWP View PostI have been offered a contract for £100k+ per year to provide IT services internationally. Is it necessary to pay Value-Added Tax (VAT) in this case? Additionally, what is the most efficient way to pay myself, as a director, and my sibling, who is serving as the company admin or secretary, through my limited company? Can we declare expenses if we have acquired IT services from a foreign country ( lets say for 50K pounds)?
With that level of knowledge are you really supplying a six figure sum service internationally? If you are dealing with those figures wouldn't you think it best to get an accountant in to help you or at least do some research first?
I am probably totally wrong but it just sounds like you are trying to run a scam to me. 100k but you have 50k expenses already? Absolutely zero clue of basic business accounting, looking how to fudge your ltd using family and not a clue on VAT even though you've won a piece of work that is international. Sorry but somethings reads very wrong to me here.
EDIT : Aren't you on year long contracts in Sweden already?
InnerestingLast edited by northernladuk; 10 January 2023, 20:25.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View Post
You don't need a company secretary any more so if you've put them on as that thinking they are doing anything that they could get paid for then you need to think again. And they will be doing admin for the company, yeah right, we've heard that one a thousand times.
With that level of knowledge are you really supplying a six figure sum service internationally? If you are dealing with those figures wouldn't you think it best to get an accountant in to help you or at least do some research first?
I am probably totally wrong but it just sounds like you are trying to run a scam to me. 100k but you have 50k expenses already? Absolutely zero clue of basic business accounting, looking how to fudge your ltd using family and not a clue on VAT even though you've won a piece of work that is international. Sorry but somethings reads very wrong to me here.
EDIT : Aren't you on year long contracts in Sweden already?
InterestingComment
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Is this the contract in Sweden via a uk agent who decided to give you free tax advice.merely at clientco for the entertainmentComment
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Originally posted by jamesbrown View PostRead the guides over on the right ---->
VAT is based on place of supply rules. The general rule for B2B supplies of services is that the place of supply is where the customer is based. In general, a supply of services to an overseas customer will be outside of the scope of UK VAT. You will need to assess your liability to charge VAT in relation to the place of supply rules:
https://www.gov.uk/guidance/vat-how-...ly-of-services
Paying your sibling sounds like a bad idea.
On expenses, I don't know, can you? YourCo can purchase whatever it wants. As to whether you'll get tax relief depends on whether the expenses meet the wholly and exclusively test. For some reason, your example of £50k sounds a bit dodgy, not unlike your proposal to pay your sibling. What IT professional incurs expenses of £50k and pays their sibling?
Anyway, read the guides on the right, there's obviously a vast amount you don't yet know.Comment
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Originally posted by eek View PostIs this the contract in Sweden via a uk agent who decided to give you free tax advice.
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Originally posted by GGWP View Post
So you are saying I cant claim expenses of hiring some one from abroad ?'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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