IR35 - Is it applicable outside UK?

[BigDataPro]

Given a scenario where I contract outside UK, i.e. My Ltd -> UK Agency -> Non-UK EU Client, do I need to worry about IR35?

[BR14]

yes

[GhostofTarbera]

100%


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[BigDataPro]

The problem is that the end client being non-uk doesn't give a toss about IR35, making it hard / almost impossible to get status determination statement (SDS)

[ladymuck]

Then the agency will be chased for the taxes, as per the draft legislation, IIRC

[Lockhouse]

What if I just directly invoice the New York branch of my multinational client in dollars rather than invoice the UK branch in £ (no agency in chain)? Apart from the exchange rate, surely IR35 becomes a non-issue?

[jamesbrown]

What if I just directly invoice the New York branch of my multinational client in dollars rather than invoice the UK branch in £ (no agency in chain)? Apart from the exchange rate, surely IR35 becomes a non-issue?

Invoicing and currency is irrelevant but, yes, based on the current draft legislation it becomes a non-issue because overseas clients are within scope and yet practically not, so the liability is offshored, effectively, with no practical way to enforce it. The draft could change. Note: this only applies if you are doing work for an overseas client with no UK presence in the supply chain. As I said, invoicing is irrelevant.