IR35 - Working remotely for a client based outside the UK in Baltic country in EU

[freelancelife]

Hi,
I am currently looking into whether this contract would be classed as outside IR35.

Client currently has 2 companies (one is based in the UK and one in a Baltic country). They advised they will be shortly shutting down the UK branch so will only operate the company based outside the UK.


I will be providing IT services and training remotely, working from my home office in the UK (with flexibility of hours I work) no set schedule. I may visit their office in person once every year or two. I will be using all my own equipment (laptop, screens, electricity).

I'm investigating if I could invoice the company via my UK Ltd company monthly and for them to pay directly into the ltd company. I am not sure if they would need to deduct some local social security taxes or other local taxes first (I read this may apply) or if they would simply pay the whole sum directly ( then manage the taxes at my end)

Is it likely this contract would be classed as Outside IR35 and would other taxes need to be paid in the country of origin?

There are other ways this could be done such as using an international umbrella payroll company but looking at all the options. Interested if anyone else works this way and has found a solution?

Thanks!

[northernladuk]

Key here is that they do have UK presence so that's your baseline. Rules apply. The fact they plan on closing it is irrelevant for the moment as you need to sign a contract for now up until the change happens.

So the question you need to focus on is can the UK presence give you an outside SDS? Looking at your explanation the answer could be yes but there are more factors to it. The key one that strikes me is can you substitute. Now if you alone have the skills to do this and they want you to perform the training then it could fall apart on that point alone and it's inside. You'll have to negotiate with them as normal for now. Apart from the substitution issues, which can be worked around, get them to look at the gig and work an outside determination in which case it doesn't matter what happens with the organisation. You can be paid as normal regardless and off you go.

Key to the outside SDS is to present them with a SOW and not a day rate. Deliver a service over time, not a bum on seat day rate. Hard to argue that's is anything but outside so if you've got the opportunity to present an offer to them rather them looking for a body to do a days rate then snap their hand off and go for a true SOW approach.

When the UK office arm shuts down and you are 100% they have no UK presence at all then your contract chain may change but your engagement will stay the same. Happy days.

Must admit I know nothing about the complexity of invoicing and overseas client so cross that bridge when you get to it.