VAT scheme if providing services abroad and most efficent to save tax outside ir35?

[GGWP]

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)?

[oliverson]

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)?

You mean 'charge' VAT? You'll pay VAT on services and items you buy in the UK but you probably won't charge VAT to your international clients. I have a USA client that I don't charge VAT. Perversely I can reclaim VAT on the stuff my company buys here in the UK. As for the rest, it's well documented on this site and I'm sure 'certain other members' will provide some 'guidance' in this regard.

[jamesbrown]

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.

[northernladuk]

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)?

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?

Inneresting

[jamesbrown]

Yes, probably worth screening against known gricer coordinates, does sound a bit like a sockie.

[GGWP]

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?

Interesting

So you are saying I cant claim expenses of hiring some one from abroad ?

[eek]

Is this the contract in Sweden via a uk agent who decided to give you free tax advice.

[GGWP]

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.

Thank you for taking the time to respond. My contract is based in Sweden, but I will be receiving payment in the UK. Additionally, some of the work may be completed by a third party country. With that in mind, I am considering utilizing services from other countries to help me accomplish the task.

[GGWP]

Is this the contract in Sweden via a uk agent who decided to give you free tax advice.

yes Sir

[northernladuk]

So you are saying I cant claim expenses of hiring some one from abroad ?

Dunno about could you. I'm saying someone with as little clue as you appear to have from yours posts shouldn't.