Contracting for a client based in Panama?

[dogeson]

Hey, I found a client who urgently needs someone for short-term work on a project since they miss the deadlines (IT, remote, from the UK).
Are there any risks of contracting if the client is in Panama? Would HMRC flag that as a dodgy scheme or something?
Thanks

[cojak]

We have no idea, but as NLUK would say, don’t let the tax tail wag the contractor dog.

Do everything properly (maybe even contact HMRC to find out) and see how it goes. You might not make the interview stage remember.

[northernladuk]

Hey, I found a client who urgently needs someone for short-term work on a project since they miss the deadlines (IT, remote, from the UK).
Are there any risks of contracting if the client is in Panama? Would HMRC flag that as a dodgy scheme or something?
Thanks

We don't know. Is it? You need to do a lot of research in to said client and find out what is going on. Is it via an agent? Is so ask the agent for more info. If you are desperate to take it then start the process of applying but make sure you ask the right questions along the way. How are you getting paid, when, by whom etc. If this client uses remote contractors they should know the process. If they don't run a mile. See what they say, get a ton of detailed information and THEN ask us/HMRC.

But for me... Client in Panama? Hell no.

[edison]

Seems slightly odd that a company in Panama would look to hire contractors from the UK unless it's a very niche requirement. Hiring someone from say, Costa Rica, which has a decent growing outsourced IT sector would seem more logical and probably much cheaper.

I did some small bits of freelance work a few years ago for a UK company whose client had end IT customers in Belize and the Cayman Islands but have rarely come across contractors who've done work in the Americas outside of USA/Canada.

I would tread cautiously especially as there was a lot of civil unrest in Panama last year.

[cojak]

Seems slightly odd that a company in Panama would look to hire contractors from the UK unless it's a very niche requirement. Hiring someone from say, Costa Rica, which has a decent growing outsourced IT sector would seem more logical and probably much cheaper.

I did some small bits of freelance work a few years ago for a UK company whose client had end IT customers in Belize and the Cayman Islands but have rarely come across contractors who've done work in the Americas outside of USA/Canada.

I would tread cautiously especially as there was a lot of civil unrest in Panama last year.

I would definitely agree with this, I’d also add - do not get involved with any payments from Panama companies, I’m pretty confident that HMRC have trigger words that they look for and that would be one of them I expect.