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Remotely working for Danish client via UK Ltd

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    Remotely working for Danish client via UK Ltd

    Say I work until September 2021, how can IR35 (UK legislation) be enforced after April on a Danish company, if HMRC decided I am "inside"?
    The chain is Me >> Danish Agency >> Dutch Consultancy >> Danish Client

    Formerly Sausage Surprise but forgot password on account that had email address from old gig

    #2
    https://www.markeltax.co.uk/industry...nt-is-overseas

    We must then look to see what the legislation says that to be “wholly overseas” a client must show:
    • they have no UK connection immediately before the beginning of the tax year; or
    • if the client is a resident in the UK or has a permanent establishment in the UK, they will have a UK connection

    This means where a contractor has an end client based overseas, which has no UK connection, such as a UK branch or office, the new IR35 reforms will not apply and the contractor must apply the old rules.

    If, however, the end-client based overseas has a UK connection, such as a branch or office, it will still be the responsibility of the end client to determine status and issue a status determination statement. The overseas client will therefore be liable for the tax and NICs if it fails to meet its responsibilities under new rules and HMRC will collect this debt through the UK connection.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #3
      The IR35 legislation will be "enforced" in the same way as it is now i.e your LTD company is responsible for any taxes deemed outstanding by HMRC as a result of you being declared inside.

      The law change in April affecting the UK is that the responsibility for any outstanding taxes shifts from the Contractor LTD company to the end clients company. This is why some UK companies are taking the approach of a blanket inside determination to ensure that they will never have a surprise tax bill to pay.

      **NLUK beat me to it and described it better**

      Comment


        #4
        Originally posted by Eccystig View Post
        The IR35 legislation will be "enforced" in the same way as it is now i.e your LTD company is responsible for any taxes deemed outstanding by HMRC as a result of you being declared inside.

        The law change in April affecting the UK is that the responsibility for any outstanding taxes shifts from the Contractor LTD company to the end clients company. This is why some UK companies are taking the approach of a blanket inside determination to ensure that they will never have a surprise tax bill to pay.

        **NLUK beat me to it and described it better**
        Looks like we can both use google unlike the OP
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Originally posted by Eccystig View Post
          The IR35 legislation will be "enforced" in the same way as it is now i.e your LTD company is responsible for any taxes deemed outstanding by HMRC as a result of you being declared inside.

          The law change in April affecting the UK is that the responsibility for any outstanding taxes shifts from the Contractor LTD company to the end clients company. This is why some UK companies are taking the approach of a blanket inside determination to ensure that they will never have a surprise tax bill to pay.

          **NLUK beat me to it and described it better**
          This isn't a UK company, so how (after April) could HMRC enforce a "surprise tax bill"

          Formerly Sausage Surprise but forgot password on account that had email address from old gig

          Comment


            #6
            Originally posted by Wobblyheed View Post
            This isn't a UK company, so how (after April) could HMRC enforce a "surprise tax bill"
            HMRC will enforce the "suprise tax bill" on your UK LTD company rather than the Danish company - i.e the same way IR35 has operated for the last X many years and you would be liable. The April changes will only apply to UK end-clients.

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