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IR35

Does IR35 apply if a UK service company does work for only one international company

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Does IR35  apply if a UK personal service company does work for only one international company (outside the UK & EU) or because this company is abroad then IR35 can't be enforced in this case.

So, if one owner director of a personal service company based in the UK provides services to the only one company abroad all the time would he be deemed an employee of that company and HMRC might request NI and income tax from that director on the revenue taken by his UK service company?

 

 

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By Joe Alderson
13th Oct 2021 12:00

If the client company has no connection to the UK (i.e. no UK office) then I would expect IR35 wouldn't apply.

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By ammhamdy
14th Oct 2021 12:55

Thank you

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By Sandnickel
13th Oct 2021 13:03

IR35 depends on whether you are deemed to be an employee of the company which pays your ltd company. Have you done the CEST employment check on HMRC?

With the fee payer being outside of the UK it means that they won't have the responsibility of determining IR35 status. In these cases the responsibility lies with the PSC itself (i.e. you) so if you determine that the contract is within IR35 you will need to calculate deemed payments from the sales receipts.

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By ammhamdy
14th Oct 2021 12:56

Good point regarding the PSC responsibility. Will check that further. Thank you

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Caroline
By accountantccole
13th Oct 2021 14:38

I have some flow charts from an HMRC webinar in the spring (haven't managed to find them on HMRC's site) which deal with the international aspects of IR35 and when it may apply - message me your email and I can ping it over to you

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By More unearned luck
13th Oct 2021 15:59

.

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