Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 06 Jun 2024 22:24:48 GMT by Doug Mikus
I have a US S-Corporation (consulting) and have a US citizen that wants to live France and work for a company in the UK as a consultant. For US tax purposes, they would like to go through my company in lieu of setting up their own LLC which means the UK company would pay my company, and my company would pay the person. From a company perspective, I'm trying to understand what is required to ensure we're following UK laws and to see if all this makes sense. Given the odd arrangement, I haven't found a concrete answer and am hoping to get more guidance here.
Posted Mon, 10 Jun 2024 13:23:20 GMT by HMRC Admin 5 Response
Hi

As far as your specific question is concerned, I think it's reasonable to say that consultants are generally regarded as being self-employed.
This is supported by the information under 'checking their employment rights' in the link below.
Employment status
If we accept that this is so, and assume that the consultant is a French tax resident, then their profits would be taxable in France only unless they have a UK permanent establishment (Article 7 UK/France DTA).
It seems that the question being asked of us is the position from the point of view of the company.
As we would only respond on this forum board to questions relating to personal tax, we have forwarded your query to the Business Tax Customer Forum which might be better placed to provide an answer.

Thank you
 
Posted Thu, 13 Jun 2024 16:56:47 GMT by HMRC Admin 20 Response
Hi, 
Responce from Business Tax Customer Forum.
We would require all the facts relating to this situation and it would be beneficial if you could write in to HMRC at
Corporation Tax Services
HM Revenue and Customs
BX9 1AX
as we cannot provide a concrete answer as requested based on the information you have provided.
Alternatively you may wish to seek the assistance of a professional adviser.
Thank you.

 

You must be signed in to post in this forum.