Help please with IR35 Scope

[jamesbrown]

Well your posts mostly read like trolling because of the way you word them. You drip feed semi useful snippets in amongst unhelpful crud and then get all uppity when someone doesn't like the way you put things across.

You're exactly the same in person which is actually quite refreshing for a troll.

[nicke1]

Hi

Many thanks all again.

re the NT tax code.

Yes, that would indicate 'no tax' to withhold (in the UK) but I would still be subject to IR35. And whilst no UK tax is withheld I'm being fully processed via a payroll, therefore the contract value would be processed through an NL payroll. The UK agent would need to take care of all of this.

There is no income to process through a company. My UK company becomes irrelevant.

So obviously still a huge impact to me, all revenue processed as salary, can't recover VAT on expenses, huge increase in costs, etc. etc.

And that's assuming the HMRC allow the NT tax code to continue. Who knows whether they would rescind, etc.

[GhostofTarbera]

Hi

Many thanks all again.

re the NT tax code.

Yes, that would indicate 'no tax' to withhold (in the UK) but I would still be subject to IR35. And whilst no UK tax is withheld I'm being fully processed via a payroll, therefore the contract value would be processed through an NL payroll. The UK agent would need to take care of all of this.

There is no income to process through a company. My UK company becomes irrelevant.

So obviously still a huge impact to me, all revenue processed as salary, can't recover VAT on expenses, huge increase in costs, etc. etc.

And that's assuming the HMRC allow the NT tax code to continue. Who knows whether they would rescind, etc.

Phone them up

I’m betting No


Sent from my iPhone using Contractor UK Forum

[nicke1]

Phone them up

I’m betting No


Sent from my iPhone using Contractor UK Forum

Hi,

Any particular reason? This would seem to be hugely disadvantageous to foreign workers. All people in a similar situation to me would be double-taxed at source and then have the added expense of incurring professional fees to recover from one of the authorities at some stage. Why, if I'm not resident for UK tax do you think the NT tax code would be rescinded?


Does anyone know if the following structure avoids IR35?

ClientCo-Uk -> Agent-UK -> Agent-NL - MyPSC-NL


I could create a BV but I'm not convinced that this chain 'works'.

Cheers

[Sue B]

Hi,

I haven't had a chance to read all this thread yet but didn't want to appear rude by not posting, I'm sorry I missed this originally.

If you are still looking at this query then please feel free to get in touch.

Thanks

[nicke1]

Hi,

I haven't had a chance to read all this thread yet but didn't want to appear rude by not posting, I'm sorry I missed this originally.

If you are still looking at this query then please feel free to get in touch.

Thanks

Hi Sue,

Thanks, I still have the underlying issue in that the UK end client will not allow me to use my UK Ltd going forward.

Subsequent to posting I communicated with a number of Umbrella companies and very surprisingly even though I explained that I'm tax resident in the Netherlands all of them initially said they would simply 'calculate' me through a UK payroll with the HMRC provided tax code - that was the extent of their offering. None of them recognized that they should register for an overseas payroll in the NL and calculate NL taxes, etc. for me.

I'm currently looking at a structure where I create an NL company and contract with an NL agent who in turn holds a contract with the UK end client - the UK end client is willing to accept that this is outside scope of IR35.

I need to move the 30% ruling from my UK company to the 'new' NL company, etc. Likely it will cost me around 20-25% given I have an extra agency in the chain, I can't use my UK tax free earnings going forward for days worked in the UK, shareholders >5% must have a min salary of €45k, etc.


As I discussed earlier I had intended to create an NL BV anyway, at some point. Using a UK company could be challenged (corporation tax, establishment), although I tried to mitigate issues here by paying a salary in the NL equivalent to the UK revenue.

[Sue B]

Hi Nick

Could you perhaps give me a call this afternoon, as there is quite a lot to discuss. IR35 being one thing, plus offshore intermediaries, dutch payroll vs BV etc.

My direct line is 0151 443 6830, and I am mostly free this afternoon.

Thanks

[nicke1]

Hi Nick

Could you perhaps give me a call this afternoon, as there is quite a lot to discuss. IR35 being one thing, plus offshore intermediaries, dutch payroll vs BV etc.

My direct line is 0151 443 6830, and I am mostly free this afternoon.

Thanks

Hi Sue,

Many thanks, I'm in London this week so will try to call this pm.

Cheers