Q: I’m a UK resident, with a UK Limited company. My clients are exclusively in the US and overseas.
Do IR35 rules apply, or only if the client is based in the UK?
A: As both you & your limited company are UK resident, then the IR35 rules will still need to be considered even though your clients are based overseas. It would be prudent therefore not only to have your contract(s) reviewed but also to complete a Statement of Working Practices or Confirmation of Arrangements in conjunction with each end client, as in the event of an IR35 enquiry it can prove difficult to extricate evidence about your working practices from end client representatives resident overseas.
Hmmm …. interesting.
Let’s say that the individual is caught by IR35 – what would HMRC’s backdated tax be? If treated as a permanent employee of a US company, surely the taxation would be different?
..And by ‘taxation would be different’, I’m alluding to the tax levied by the US on an overseas employee… i.e. what would HMRC stand to gain in tax?