MVL TAAR in UK and new EU contract

[DaaaaaaaaaaN]

I was in a similar position last year - closed my UK Ltd company in late 2020 and started contracting in Ireland. I debated opening my own Ltd company in Ireland but was a bit spooked by the TAAR rules despite having moved abroad.

I decided to use an Irish umbrella company just to be safe (even though I'm sure I would have been fine). There is no big advantage to opening your company in Ireland so it didn't really make much of a difference for me.

Edit: Just realised you will be living in the UK, avoid that plan like the plague and use an umbrella. Peace of mind and all that.

[jamesbrown]

Tell me what I want to hear!

https://forums.contractoruk.com/gene...-referral.html

[northernladuk]

Nope they will throw the book at him and add penalties..

They will indeed, I was just using is rather nice but totally understated terminology.

[Whitelime]

If you're working from home in the UK regardless of where the client is, this should be a UK registered business. I would strongly advise against using a foreign company. I doubt it's legally possible.

In the end, both countries will want the Corp. Tax to be paid.

[BlasterBates]

If you're working from home in the UK regardless of where the client is, this should be a UK registered business. I would strongly advise against using a foreign company. I doubt it's legally possible.

[eek]

Oh, forget about it. You’re squarely within the scope of the TAAR. Again, go with an umbrella.

Sadly what JB said - and you can't use an EU company to get round it so just use an umbrella.

If you are trying to circumvent the rules through a convoluted method they'll still think bad of you.

Nope they will throw the book at him and add penalties.

However, as the OP is cash rich an umbrella is the perfect way to rapidly fill up his/her pension pot by routing as much as possible into a SIPP.

[northernladuk]

I just don't want HMRC to think bad of me and pursue me.

If you are trying to circumvent the rules through a convoluted method they'll still think bad of you.

[jamesbrown]

So my mvl started in December 2020 when I decided to become a permie. My final distribution was last month.

Since then I have been PAYE but now a new opportunity has come around, so I guess I have done the right thing by not trying to phoenix a company. I just don't want HMRC to think bad of me and pursue me.

Oh, forget about it. You’re squarely within the scope of the TAAR. Again, go with an umbrella.

[goonbreath]

So my mvl started in December 2020 when I decided to become a permie. My final distribution was last month.

Since then I have been PAYE but now a new opportunity has come around, so I guess I have done the right thing by not trying to phoenix a company. I just don't want HMRC to think bad of me and pursue me.

[eek]

I am specifically looking for if HMRC would have a case against me if I were to choose to create a company in the EU and work in the EU while being UK based. It is that specific part of the question that I require.

HMRC would be going after you because of the last bit on the basis that you are intentionally avoiding the rules rather than accidently doing so.


1) When did you MVL the company and on what dates were payments made? Early 2020 not a problem, late 2020 iffy, late 2021 nope.
2) what have you been doing since you MVLed the company?

Because you best advice would be to face the issue head on - I went permanent in 2020 and an opportunity has arrived that can only be done via a limited company hence I've created one.

It's possible to escape the TAAR rules provided you have a decent story that makes sense (and the fact the offer is coming from an EU company gives you a whole set of reasons for creating a new company that you wouldn't get with a UK client)

[goonbreath]

Thanks jamesbrown for the response, but for me I do not like the idea of using an Umbrella simply because of losing so much money, all the fun of being a contractor without the benefits. I am quite comfortable running my own business but have no experience in MVL and how HMRC view EU companies.

I am specifically looking for if HMRC would have a case against me if I were to choose to create a company in the EU and work in the EU while being UK based. It is that specific part of the question that I require.

[lucyclarityumbrella]

Thanks jamesbrown

goonbreath just let me know if you would like a chat.

[jamesbrown]

The TAAR is very broadly drawn ("same or a similar trade or activity"). Just use an umbrella and forget about it, since HMRC has clarified umbrella employment as being fine. Clarity is a good choice. Speak to lucyclarityumbrella


That said, if you're close to 2 years from the last distribution and you had no plans to do this, it wouldn't be a great case for HMRC.

[goonbreath]

Hi All,

I was a contractor and stopped in 2020. I closed my business through an MVL, which means that TAAR applies, so I cannot start a new company of the same type for 2 years.

I am possibly about to contract in the EU, working for a company over there, from home in the UK. I thought of registering a company in Estonia as an e-resident.

I do not want to annoy HMRC or fall foul of any unknown rules. I cannot see anything about not doing this, or any issues regarding an MVL in the UK and starting up a business in the EU.

Has anyone got any experience on this?