Anonymous
Share this content

IR35 end client is based outside UK

Does IR35 still apply?

Didn't find your answer?

Not sure whether I'm misunderstanding the wording with IR35 and end client being situated outside of the UK.

They definitely have no offices/bases over here and I keep seeing the following guidance: If your client is based overseas with no presence in the UK, then the IR35 rules don’t apply. If they are based overseas but do have a connection to the UK, then they have to assess your IR35 status.

So does this mean that the Limited Company doesn't need to apply IR35 at all or does it mean that they have to determine the status themselves, the onus doesn't fall on the end client to determine it as they are outside the UK?

Thanks

Replies (3)

Please login or register to join the discussion.

avatar
By GR
25th Jun 2021 09:58

The UK personal service company has to determine the status themselves, the onus doesn't fall on the end client to determine it as they are outside the UK.

Thanks (0)
Replying to GR:
avatar
By Hugo Fair
25th Jun 2021 11:50

To be pedantic (not unusually), the fact that the end client is 'based overseas with no presence in the UK' does indeed exempt them from the need to determine status ... but this means that the responsibility for determination passes down to the next organisation in the chain.
In this case that is probably the UK PSC, but it will sometimes be an Agency or an Umbrella company or a sub-contractor or ...

Thanks (1)
Caroline
By accountantccole
29th Jun 2021 09:45

HMRC ran a webinar on international aspects of IR35 and provided useful flow charts.
Last time I looked I couldn't find them online but if you want to message me your email I can forward the course notes

Thanks (0)
Share this content