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IR35 and contract for business based in Portugal

IR35 and contract for business based in Portugal

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A Ltd co consultant client has a potential contract for a business based in Portugal.

He has been tasked with setting up a new 'division' within the business utilising his worldwide contacts to set up the management team, systems and structure.

He would work from home (UK) although there would be substantial international business travel.

The company he would be contracting for has no UK presence so my initial thoughts were that IR35 could not apply but this does not seem to be the case - correct?

Even if IR35 is a consideration I would have thought it unlikely to apply due to the high level autonomous role to be undertaken. I have advised a QDOS contract review be undertaken.

The role would involve short term stays (less than two weeks at a time) in Portugal and several other countries.

Are there any local tax considerations in these circumstances regarding Portugal and the company paying him?

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10th May 2019 11:54

Very tentatively I would think that the question to be answered is to ask if the non resident client has a "tax presence" in the UK . See:-
Scorer (H.M. Inspector of Taxes) v Olin Energy Systems Limited. [1985] BTC 181

If the answer is no, then there is arguably no UK Sch E at stake.

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