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Post Info TOPIC: Overseas Contractor


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One for you Shaun!

A UK recruitment company offers a contract to a guy at an Australian co.

The contractor has a Delaware co, does not live in the UK for more than 90 days per year and has a uk passport and a house here.

Question is, would you feel comfortable paying the contractor via the Delaware co???

P

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Phew,

you really get them don't you Phillip!

So is the guy going the be paying tax in Australia or America or both?

I've had cases of people working abroad but being paid in the UK but I haven't had a case like this where he's employed in one country to work in another but paid in a third... That's the way that I'm reading it, please correct me if I'm wrong.

I think that you need someone with a bit more specialist tax knowledge than me for this one (what the betting that Bill knows the answer!).









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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.



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Thanks Shaun.

If the guy was living in the UK, then I would not touch it as a Delaware co is really an offshore way of hiding money to avoid tax, but if he does not pay UK tax, then I don't think I should be worried about whom gets paid, as the recruitment co is in this case, not responsible for any tax or NI that may or may not be paid, or rather go unpaid!

Hmmm

P



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Shamus wrote:
I think that you need someone with a bit more specialist tax knowledge than me for this one (what the betting that Bill knows the answer!).

This one is a bit beyond me but funny enough I was looking for an answer to something else yesterday (experience is something you get, when you are looking for something else!!) and came across this on the HMRC website, which may hold the answer.

http://www.hmrc.gov.uk/manuals/eimanual/EIM11815.htm

and

http://www.hmrc.gov.uk/manuals/eimanual/EIM11816.htm

Which deals with who pays what, where, how, why and when for different agency, intermediary, UK and foreign based workers.

Hope it helps

Bill

PS Like the strap line Shaun - I think I know why you are using it wink.gif

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Just noticed that if you put : and - and ) together, the site automatically puts in smile.gif, how clever is that?

All it need to do now is have an autocorrect facility so taht my mxied up words are corrretced, withouyt me retyping.


-- Edited by Wella on Friday 4th of June 2010 08:22:16 AM

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Wella wrote:

Just noticed that if you put : and - and ) together, the site automatically puts in smile.gif, how clever is that?


It may be clever but it can be annoying at times (on other forums) when you don't actually want the smiley that a certain combination of characters will produce.

EDIT : When did I become "grumpy old man" ?

-- Edited by Peasie on Friday 4th of June 2010 08:32:18 AM

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How did I know that you would know the answer to that one Bill!

I've got the market cornered on professional body and professional ethics questions though.

Just don't know what you mean about the strap line! (lol, yes I do!!!)

I've got a few of them and didn't know which one to pick so expect that to change even more often then the Avatar.



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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.



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Hi,

Can I have a question here? Someone asked me recently (a friend of mine) who wants to move his business to the UK (manufacturing and selling water purifiers for fish tanks and ponds) about what happens with VAT if one of his suppliers is from Spain (that should be ok EC) and the other one is from the US. What I mean is if the US supplier charges taxes can he include it in his VAT in any ways?
Any info would help, I have no idea about american suppliers....

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Attila



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Thanks Bill, had a look but those are more into PAYE payments rather than the paying of Ltd co suppliers, interesting reading though, additional learning I think they call it.

Attila
Questions are always welcome. Any VAT charged in a foreign country cannot be reclaimed in the UK. But you may also need to be aware of any import charges, duty etc that may be levied on the goods.
But if the goods are for export from the other country, they should not be charging VAT anyway.

P

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Thanks for that! I have no experience in foreign trade at all.

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