IR35 - contractor with Uk Ltd company and clients not in UK

[mmarco]

Hi, I am a software developer working as a contractor in Italy.
I will move to UK in a few weeks and I will stay and live in UK for some years.
My idea is to close my company in Italy and then start a business in UK with a Ltd company.
My client is a private Software House in Italy, do you think I could have problem with IR35?

Thanks
Marco

[malvolio]

Hi, I am a software developer working as a contractor in Italy.
I will move to UK in a few weeks and I will stay and live in UK for some years.
My idea is to close my company in Italy and then start a business in UK with a Ltd company.
My client is a private Software House in Italy, do you think I could have problem with IR35?

Thanks
Marco

Why not. Everyone else does...

It's a UK tax on UK earnings, if it applies, so you will have to consider it. It all depends on how your business with the software house is set up, but if it a properly commercial engagement you should be out of scope of IR35. I should read the guides on this site and the "Guide to Freelancing" at www.ipse.co.uk to learn as much as you can about it - and a lot of other stuff.

[Darren at Fox-Bartfield]

IR35

Hi, I am a software developer working as a contractor in Italy.
I will move to UK in a few weeks and I will stay and live in UK for some years.
My idea is to close my company in Italy and then start a business in UK with a Ltd company.
My client is a private Software House in Italy, do you think I could have problem with IR35?

Thanks
Marco

As Mal mentions, be worthwhile looking at the first timers guides and IPSE website for some background reading. Also, suggest taking some advice from an accountant to discuss your situation in more details

[mmarco]

Why not. Everyone else does...

It's a UK tax on UK earnings, if it applies, so you will have to consider it. It all depends on how your business with the software house is set up, but if it a properly commercial engagement you should be out of scope of IR35. I should read the guides on this site and the "Guide to Freelancing" at www.ipse.co.uk to learn as much as you can about it - and a lot of other stuff.

Thanks! What do you means with: "properly commercial engagement"?

[Darren at Fox-Bartfield]

Contract

Thanks! What do you means with: "properly commercial engagement"?

Meaning a genuine business to business agreement

[mmarco]

ir35 - business contract

Meaning a genuine business to business agreement

I will work remotely in the UK for a single customer throughout 2018, it is clear to me that the contract will have to be written correctly.
Basically my doubts concern the type of relationship with my customer since it will be only one throughout the year 2018.

Do you think there can be problems with IR35?

[malvolio]

I will work remotely in the UK for a single customer throughout 2018, it is clear to me that the contract will have to be written correctly.
Basically my doubts concern the type of relationship with my customer since it will be only one throughout the year 2018.

Do you think there can be problems with IR35?

Sigh....

Start from here.. But remember that IR35 is not the most important issue you will face.

[mmarco]

Sigh....

Start from here.. But remember that IR35 is not the most important issue you will face.

Thanks malvolio.
What are the most important issues I will have to face?

[mudskipper]

Your client being outside the UK does not mean that IR35 is irrelevant. It can, however, make it more difficult for HMRC to prove your IR35 caught status, as non-UK companies are not obliged to answer their questions.

But your best bet is to read up and understand IR35, and make sure your working practices fall outside.

Good luck!

[malvolio]

Thanks malvolio.
What are the most important issues I will have to face?

That's why I said to read the guides. You have to understand UK tax laws, not just IR35, what expenses are and aren't allowable, VAT rules and at least the basics of book-keeping, plus oddities like annual reporting and Companies House requirements.

So get reading...