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Posted Wed, 27 Mar 2024 14:31:53 GMT by mikee48723
Hello, Since moving to the UK a few years back – purely for private reasons - I have been providing Management Consultancy Services to a European company on a contracting basis. The foreign company did not (and still does not) have any business presence here in the UK (no trading, no registration, no office, no branch/retail, no employees) and I work entirely remotely. Because of my specific expertise I do hold a Senior Mgmt position (CEO) with the foreign company. Due to the specifics my UK tax advisor / certified accountant recommended to register as a Sole Trader and to file my taxes via self-assessment. The Limited route would have been not ideal due to IR35 concerns. This treatment follows a similar situation in a recent online discussion with a HMRC admin (quoted) below: Quote start *****“Posted 2 months ago by … hello. :) I am currently employed in a Polish company and work exclusively remotely. this year I'm moving to the UK with visa family - i am joining my partner in the uk. Since there is little chance that I will find employment in the UK immediately, I plan to continue working for the Polish company remotely. However, this company does not employ anyone from the UK and does not provide services here. what must the employer do (register employment or me as an employee) to pay income tax and NHS for me? I also read that I can register myself and pay income tax and NHS for foreign income - does the government consider this as full employment and, for example, does it build my creditworthiness for the next years? i am just looking for the best way to pay taxes and nhs - in such a way that the government will treat me as a full-time employee with full-time job Posted 2 months ago by HMRC Admin 20 Hi RY5, This would be treated as self-employment and you would need to register for self-assessment and complete a tax return to declare this - Working for yourself. Thank you. *** Quote end Now I'm about to engage into a contract renewal with the foreign company and need to ask a few questions: Q1: Have there been any changes since 2017 that would require a different arrangement? As far as I can see IR35 has undergone some changes but it seems that IR35 still does not apply to me as a Sole Trader. Do you confirm? Q2: Having filed and paid my UK taxes as a self-employed have I met all of my UK tax liabilities with regards to the above? Q3: Are there any other risks relating to this consulting/contracting setup? I read about HMRC also starting to consider private homes as PE (Permanent Establishments). But I'm unsure whether related assessments/trading rules even apply to sole traders. It seems they are more geared towards employment arrangements. Q4: Given the current setup are there any tax liabilities for the foreign company arising from the UK? Both retroactively as well forward looking. Thank you.
Posted Thu, 28 Mar 2024 17:44:17 GMT by HMRC Admin 25
Hi mikee48723,
IR35 off payroll working, is designed to ensure individuals working like employees, but through their own limited company (often known as a ‘personal service company’ or ‘PSC’), or other intermediary, pay broadly the same Income Tax and National Insurance contributions (NICs) as individuals who are directly employed.
This does not affect being self employed with a foreign employer.
We cannot advise in this forum, whether your have met all of your UK tax liabilities, as we can only provide general information.
A Non UK based employer, can employ a UK resident as an non resident employee or as a sole trader.
In either case, this would be foreign income and should be decalred on a self assessment tax return.
Thank you. 

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