Tax issues on secondment
UK co[A] is contracting with a Client UK [B] companys Asia subsidary [ S ]
This will require the director/employee of [A] to ‘relocate’ for 3 months to SE Asia
The bulk of the work will be done in Asia/Australasia
Some small amount may be billed from being done in the UK
Questions relate to the contracting / invoicing and expenses
1] A will invoice time + materials in which ever currency is the contracted currency [ to include international flights, accom/or agreed site per diem, local transport and sundry agreed expenses] to S
a] There is no VAT billed to S ?
b] If this were to be contracted & invoiced to B instead [an option ] with the works being outside the UK would this change ?
2] If S is the contracted party, and upon return to the UK, work is undertaken and completed in the UK then presumably no VAT is charged ?
3] Director employee / expenses to A should equal actual incurred costs of all the above – and if accommodation was not say a hotel room for 3 months but say a Serviced Apartment……any issues then re accomodation
Are there any grounds for claims on meals / shopping or laundry related costs ???
[ reason to try to negotiate a generous per diem to cover full cost from client !!! ]
4] Director employee and Co A paye + ni issues on the expenses.
a] Given the tenure – full UK home to be maintained – would like to appreciate potential issues / or correct best practice.
b] Any allowable claims by Director/employee over and above receipted items [ ie HMRC non taxable/non nic’able allowances ? ]
5] Co A will pay monthly salary etc as normal to UK account. With usual PAYE/NI
Generally speaking, is there a personal tax issue arising from a Director/employee spending, so much time as a secondee in another jurisdiction. Is it better to Break it with a return to say UK
Appreciate the company A may make a profit if a per diem is agreed that is greater than actual incurred/billed accommodation + expense costs.
Also appreciate a currency risk if invoicing S in local currency.
Interested to hear from anyone who has had such an ‘assignment’ and the best practice arrangement established
Friday afternoon – sorry for long post
Have a good weekend!
- Is there difference between when you state you will provide a specific provison and you will make a specific provision of £3200 against a partcular debt? 28 3
- Please for the love of god can anyone clear this up for me accruals and prepayments please help anyone out there....accountants need to help other accountants out :) 301 14
- How do I clear transaction history - Sage 50 v9 266 8
- Tax Return Deadlines 113 2
- When will Private Principal Residence Relief cut will start? 528 11
- Flat rate vat error 325 7
- EC VAT 212 9
- Dividend paid to non-shareholder 526 13
- Property versus Trade in a Ltd Company 286 14
- Whats the best way to keep my accounts? 549 16
- can I claim a per diem 264 5
- s.755 ITA 2007 Gains on transactions in land 137 2
- Who picks up the slack? 1,377 8
- VAT on part of a closed pub 246 14
- CA self-employed income below personal allowance 99 1
- HMRC corporation tax software - how to enter negative expense 295 8
- Dispensation pointless ? 536 14
- Snotty HMRC letter - continued 861 19
- Underpaid taxes included in tax code connundrum 164 3
- Linux Accounting Software 571 13
- Desperately seeking Susan, Sam or anyone with any other name 836
- Experience with Islamic investor following Sharia-compliant rules? 507
- Darwinpay Partnership Assessment 318
- How to format a stock book 287
- Tax efficient holding company structure 229
- S464A Charge to tax: conferring benefit & BIK 229
- Investment property company accounts template 219
- Outlook 2007 with business contact manager not loading on new laptop 211
- Sage 50 Customer Statements and Running Balances 181
- auto enrolment - calculation of first pension deduction 181