Reply to: non-UK based company looking to contrat in the UK

[NotAllThere]

Your representative must either be self-employed, working for your company in Hungary (which won't wash as the agencies won't touch that.) Or he/she must work through his own ltd. company. A third option is that he/she works through a brolly.

Coupled with this:

4. People have pointed out repeatedly that the CUK posters are either unable to answer your questions because they're a bit weird or unwilling as they would charge an absolute fortune for advising a company trying to set up business and you're after free advice.

5. ...you will need the VERY EXPENSIVE advice of professionals with a specialist skillset, They tend to be in large international companies as a small practice couldn't keep them in business.

I'm locking the thread.

[Confounded]

1. Have you actually stated what country you want to operate this business model from? I haven't noticed if you have.

2. Based on your posts it looks like you want to supply people in as if they were individual UK contractors, working in the UK, but make them subject to taxation in another country.

3. People have already pointed out that even with the vague and obfuscated details you've provided it looks more than a little like you're trying to play fast and loose with tax law.

4. People have pointed out repeatedly that the CUK posters are either unable to answer your questions because they're a bit weird or unwilling as they would charge an absolute fortune for advising a company trying to set up business and you're after free advice.

5. Assuming you're actually real and not some outright troll (the jury decision on that is pending) you will need the VERY EXPENSIVE advice of professionals with a specialist skillset, They tend to be in large international companies as a small practice couldn't keep them in business.

It doesn't matter how many times you ask the same poorly framed question CUK is incapable or unwilling to answer it as quite honestly it looks like you're trying to take the mickey with the existing business and tax models.

1. We are based in Hungary.

2. No, the representative will be subject to income tax in the UK.

3. If it wasn't for the refusal of UK counterparties to work with non-UK based companies, which is not illegal, we would not have to "play" anything - we would just bill to our company.

[Confounded]

Now correct me if I'm wrong but your firm are intending to do neither.

Well, the representative working in the UK will have to pay the UK tax on his wages as he will be based there for more than 6 months, this is clear.

We just do not want to generate profits in our UK-based company.

[TykeMerc]

And this is why in the posts I have repeatedly asked for a recommendation of a reputable (not rip-off) firm of lawyers / accountants that can advise on these issues.

Furthermore, I am now talking about UK tax law, not international, so would have thought that at least on this side I could get some advice.

Would the arrangement I described be considered under the UK law as “sub-contracting”?

Would the fee paid for taking an employee out on a loan be deductible for UK corporate tax purposes?

1. Have you actually stated what country you want to operate this business model from? I haven't noticed if you have.
2. Based on your posts it looks like you want to supply people in as if they were individual UK contractors, working in the UK, but make them subject to taxation in another country.
3. People have already pointed out that even with the vague and obfuscated details you've provided it looks more than a little like you're trying to play fast and loose with tax law.
4. People have pointed out repeatedly that the CUK posters are either unable to answer your questions because they're a bit weird or unwilling as they would charge an absolute fortune for advising a company trying to set up business and you're after free advice.
5. Assuming you're actually real and not some outright troll (the jury decision on that is pending) you will need the VERY EXPENSIVE advice of professionals with a specialist skillset, They tend to be in large international companies as a small practice couldn't keep them in business.

It doesn't matter how many times you ask the same poorly framed question CUK is incapable or unwilling to answer it as quite honestly it looks like you're trying to take the mickey with the existing business and tax models.

[vadhert]

So, you see, there are job opportunities created by international business in the UK after all.

I never said there wasn't.

Again I would have said your only problem lies in greasing the palms of the government regarding the tax issue as that is your problem.

You are talking about working in the UK without paying the tax due. That is the problem and you are after advice here on that subject. None of us have the correct tax advice as we are UK based contractors but your model involves billing UK based companies and sending the funds to the EU negating the tax due. Big firms get away with this due to paying PAYE in the UK leaving small corporation tax bills but they still pay tax in the form of a PAYE vehicle. Now correct me if I'm wrong but your firm are intending to do neither.

[MrMarkyMark]

So, you see, there are job opportunities created by international business in the UK after all.

Yes, we have been dealing with messes for years as a direct result of the outsourcing model.

[MrMarkyMark]

"And I was hoping that these UK-based accountants with knowledge of issues pertaining to UK based business can answer a question on whether or not a fee paid for loaning an employee from one UK company to another is tax deductible or UK corporate tax purposes or not."

Where in that question do you see anything about EU laws or EU based contractors? It is purely to do with UK law. And I would have expected UK accountants to know the UK law with this regard. Or do UK companies not lend employees to one another?

No, they don't.
The closest thing would be a consultancy company supplying consultants to a UK based PLC. Obviously, they pay a daily rate for engagng the consultancy.

Your suggestion, on the other hand, seems like pure tax evasion .

[Confounded]

Yes I'm currently polishing a turd an external international IT consultancy delivered to my current client.

Will be happy to mop up your mess at a later date too.

So, you see, there are job opportunities created by international business in the UK after all.

[Confounded]

Why would they have that knowledge?
They work with UK based contractor business' not EU Based ones, therefore, they know the relevant laws for UK based business.

Thank you MrMarkyMark.

It was already pointed out to me by WordIsBond that this is indeed not the best forum and WordIsBond has also kindly offered a different resource to try.

With regard to your question. Please read my last post, which I re-stated below for you convenience:

"And I was hoping that these UK-based accountants with knowledge of issues pertaining to UK based business can answer a question on whether or not a fee paid for loaning an employee from one UK company to another is tax deductible or UK corporate tax purposes or not."

Where in that question do you see anything about EU laws or EU based contractors? It is purely to do with UK law. And I would have expected UK accountants to know the UK law with this regard. Or do UK companies not lend employees to one another?

[MrMarkyMark]

Will be happy to mop up your mess at a later date too.

Have you tried the glitter coating method?

[vadhert]

Yes I'm currently polishing a turd an external international IT consultancy delivered to my current client.

Will be happy to mop up your mess at a later date too.

[MrMarkyMark]

Dear MrMarkyMark,

Yes this is exactly what I mean. And I was hoping that these UK-based accountants with knowledge of issues pertaining to UK based business can answer a question on whether or not a fee paid for loaning an employee from one UK company to another is tax deductible or UK corporate tax purposes or not.

Why would they have that knowledge?
They work with UK based contractor business' not EU Based ones, therefore, they know the relevant laws for UK based business.

I don't get what you don't get about this, wrong people, wrong forum.

HTH.

[Confounded]

Ok...This would work perfectly if you or your business were to do one of the following two options:

A) Hire a number of UK based staff and contribute towards their PAYE or other Tax mechanism's.

B) Line parliaments pockets on the way to the airport / ferry.

Choose. but choose wisely.

HTH

Dear vadhert,

Thank you for your comments. They are, unfortunately, not as helpful as hoped.

(But then what could really be expected from the person who has for signature “Polishing a turd near you!!” ?)

[Confounded]

Errrrm, you mean UK based accountants, dealing with UK contractors, with knowledge of issues pertaining to UK based contractor business, right?

Dear MrMarkyMark,

Yes this is exactly what I mean. And I was hoping that these UK-based accountants with knowledge of issues pertaining to UK based business can answer a question on whether or not a fee paid for loaning an employee from one UK company to another is tax deductible or UK corporate tax purposes or not.

[MrMarkyMark]

My understanding was that accountants were also participating in this forum, particularly since the thread is called "Accounting / Legal", - is this not so?

Errrrm, you mean UK based accountants, dealing with UK contractors, with knowledge of issues pertaining to UK based contractor business, right?

Yes, they post on this forum.

Would they know the answers to your questions?
I doubt it.

You accuse everyone of reading your posts wrongly, but then fail to assimilate the posts by others .