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Umbrella if not UK resident

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    Umbrella if not UK resident

    Hi,
    I have two questions for fellow my contractors:

    1. I'm looking for an umbrella company for working on a UK contract whilst I live outside of the UK.
    I am a UK national, and have been contracting through my own Ltd for several years.

    2.I am currently resident in Malta, and am paying personal tax in Malta.
    As there is a double tax treaty in place and I spend less than 6 months of the year in the UK, I don't believe I should be paying income tax in the UK as well as Malta.
    Is this correct?

    #2
    Are you working in the UK, or working remotely from Malta?
    Down with racism. Long live miscegenation!

    Comment


      #3
      Originally posted by NotAllThere View Post
      Are you working in the UK, or working remotely from Malta?
      Remotely from Malta

      Comment


        #4
        Originally posted by ExpatChris View Post
        Hi,
        I have two questions for fellow my contractors:

        1. I'm looking for an umbrella company for working on a UK contract whilst I live outside of the UK.
        I am a UK national, and have been contracting through my own Ltd for several years.

        2.I am currently resident in Malta, and am paying personal tax in Malta.
        As there is a double tax treaty in place and I spend less than 6 months of the year in the UK, I don't believe I should be paying income tax in the UK as well as Malta.
        Is this correct?
        This isn't going to work out the way you hope it will.

        IR35 means tax needs to be paid in the UK regardless of where you are actually living - especially as I suspect you will be trying to pretend to be living in the UK.
        merely at clientco for the entertainment

        Comment


          #5
          You pay tax in the location you are sat while working. There is no NI nor tax due in the UK. I invoiced UK companies from Switzerland through my Swiss limited company for years.

          Originally posted by eek View Post
          IR35 means tax needs to be paid in the UK regardless of where you are actually living
          I'm not sure that's entirely accurate. Under the reforms, the client (or agency) is responsible for determining whether IR35 applies - which in turn means whether there is NI and TAX due. If the worker is not UK resident, then NI and tax are not due.

          I'm happy to be corrected of course.

          The tricky bit is getting a client and/or agency who'll agree with that.
          Down with racism. Long live miscegenation!

          Comment


            #6
            Originally posted by NotAllThere View Post

            The tricky bit is getting a client and/or agency who'll agree with that.
            Agency is going to insist that the person has a UK address - otherwise it's on to the next candidate.

            With a UK address how do you then avoid paying tax in the UK.

            There are ways in which you could get this to work but if you are a contractor looking at an inside IR35 UK contract - the odds of you not being deemed as present in the UK and so not paying UK tax on the contract is roughly zero - as the only way to get past the first hurdle would be to lie.

            And even if you did pull it off the idea of you actually being abroad is going to scare both the agent and the client as soon as it's mentioned / revealed.
            merely at clientco for the entertainment

            Comment


              #7
              Originally posted by eek View Post

              Agency is going to insist that the person has a UK address - otherwise it's on to the next candidate.

              With a UK address how do you then avoid paying tax in the UK.

              There are ways in which you could get this to work but if you are a contractor looking at an inside IR35 UK contract - the odds of you not being deemed as present in the UK and so not paying UK tax on the contract is roughly zero - as the only way to get past the first hurdle would be to lie.

              And even if you did pull it off the idea of you actually being abroad is going to scare both the agent and the client as soon as it's mentioned / revealed.
              Many assumptions there. For all we know, it's all done and dusted except for the question of billing.

              Anyway, you confirm what I said. Legally, there's no issue, but culturally and educationally there might be. Not all agencies do insist on a UK address - so long as the contractor really isn't working in the UK. You may have read the many recent posts of people based in the UK working remotely for European or American clients. it would be odd if it was only a problem t'other way round.
              Down with racism. Long live miscegenation!

              Comment


                #8
                Originally posted by NotAllThere View Post
                Many assumptions there. For all we know, it's all done and dusted except for the question of billing.

                Anyway, you confirm what I said. Legally, there's no issue, but culturally and educationally there might be. Not all agencies do insist on a UK address - so long as the contractor really isn't working in the UK. You may have read the many recent posts of people based in the UK working remotely for European or American clients. it would be odd if it was only a problem t'other way round.
                But this guy doesn't want to do a SoW piece of work from abroad. He wants to act as an employee of an umbrella company and that opens up a whole pile of other issues - employment law, data security on top of tax and that's before I start thinking about it.

                But hey as a permanent member of staff living in Switzerland have you spent the last 9 months learning the intimate details of how the new IR35 world works.

                Thought not, but guess who has.
                Last edited by eek; 22 March 2021, 13:19.
                merely at clientco for the entertainment

                Comment


                  #9
                  Originally posted by eek View Post
                  But hey as a permanent member of staff living in Switzerland have you spent the last 9 months learning the intimate details of how the new IR35 world works.

                  Thought not, but guess who has.
                  Wow, I didn't know you were a permanent member of staff living in Switzerland who has spend the last nine months... etc.

                  Irrelevant. We don't know the details. Your reading is an assumption of what the OP means. Mine is that he is wanting to work remotely for a UK company and thinks a UK brolly is the solution since he has no clue how taxes etc. work across borders.

                  If your reading of the OP is correct, then naturally you are correct. If it isn't, then you're wrong. Regardless of your doubtless excellent knowledge of the ins and outs of the new regime.
                  Down with racism. Long live miscegenation!

                  Comment


                    #10
                    Originally posted by NotAllThere View Post
                    I don't read it like that. I read someone is wanting to work remotely for a UK company and thinks a UK brolly is the solution since he has no clue how taxes etc. work across borders.
                    May I refer you to the threads regarding Germany and Belgian tax inspectors - and suggest you think for a minute.

                    I'm sorry to say this but as a Moderator you really should not be posting on things where it is clear that you don't understand the complete picture as remember this is in the umbrella companies channel which is about becoming an employee of an umbrella company and the consequences of doing so.

                    Finally

                    I hope Cojak has plenty of time post retirement as she will have to answer the questions I usually deal with here.
                    merely at clientco for the entertainment

                    Comment

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