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Tax advice: Outside IR35 when working from UK for overseas European client

Discussion in 'Accounting and Legal' started by magnus, Feb 19, 2020.

  1. magnus

    magnus New Member


    I'm going to be working for a Danish company and was wondering how it works when an overseas client "determines your IR35 status"? How will they do this? Can I just ask them to note me as being outside? And where do they report it?

    I know the company well as I've worked for them as a perm in Denmark, but am now moving to UK and will be billing them a day rate instead. I am in doubt whether I should become a sole trader or start a limited company.

  2. Asad Raufi

    Asad Raufi New Member

    Hi Magnus,

    It will be better to form a limited company in the UK and you will be outside IR35

    I help set up the business, open bank account, set up systems for bookkeeping and register with HMRC and Companies House.
    Last edited by a moderator: Mar 10, 2020
  3. Gloria Field

    Gloria Field New Member

    Thank you
  4. Fishbourne

    Fishbourne New Member

    It is worth considering that under this type of option, the company acting as your employer will want to pass on employment costs, which are very high in Spain. You should, therefore, discuss this in detail with the end-user and you personally should ensure that your pay rate is going to be sufficient to cover all costs krogerfeedback
    Last edited: May 6, 2020
  5. isa

    isa New Member

    The short answer to this question is: yes, even when contracting in another country, the IR35 legislation may still affect you as an independent professional from the UK. ... Only after a full year abroad will you finally cease to be tax-liable on earned income in the Uk
    Last edited by a moderator: May 19, 2020
  6. Lupita

    Lupita Member

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