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Everything you need to know is in HMRC guidance. Google for RDR3 guide notes at HMRC. -
Non-resident (in Dubai) but offered a contract with UK company
Hi All,
First post here so hoping the experts on here can help. Hopefully not as complicated as I fear it is!
Background, I currently work for a UK company as an employee, remotely from Dubai for the last 2 months, and my employment will come to a stop in a couple of weeks. I have now been offered a contract (still to decide if FTC, limited company, agency etc.). I've never contracted before so do not have a limited company set up yet. I have already attained an NT code from HMRC as we are non-residents, and intend to stay out of the UK for a few years at least. When I move companies (say from current employer to my own LTD company hypothetically) in Nov, does that change my tax code automatically? I hope it doesn't as my Non-resident status doesn't change, so not sure why the NT code would change as a result of just getting a P45 from current firm.
The proposed contract also requires me (not in writing yet) to be in the UK physically for ~30 days a year (a week every 2 months or so). I've checked the criteria for residency test and I'll be ok from this aspect (<90 days in the UK + will work <30 days from the UK too every year).
My questions are essentially two pronged. One to do with the best way to contract (FTC, Ltd company etc), and the second re: IR35.
- Considering I'm already on an NT code for the last couple of months, what's the best way forward with this contract? Do I ask for an FTC, or set up my own limited company, or an agency route is better?
- In my simplistic head, if I were to start a ltd company, and try to draw down most of the monthly contractor income as salary, I wouldn't be taxed through PAYE as I'm on an NT code and will continue to be? Don't want to take big dividends, as if we come back to the UK within 5 years, we'll be liable to pay for such gains from what I recall.
- I'm not even sure about IR35 in this instance, but I'm hoping since I'm non resident, it doesn't apply. However, my company is a mid-large company, and hence will probably have to deduct at their end if this role is deemed inside IR35.
-Is there anything I can do to steer them in the direction of outside IR35? If deemed inside, is there anything I can do to claim back the tax paid since I'm non-resident?
Since there is no income tax in Dubai (double taxation agreement as well), I only have to ensure I get the UK leg right.
If there's anything else I need to be wary of, please let me know too.
Appreciate the help in advance!
Many thanks
Pratt
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