EU company contracting to UK company - HMRC position?

Discussion in 'Accounts & Finance' started by THE_SPANNER, Jul 13, 2019.

  1. THE_SPANNER

    THE_SPANNER UKBF Contributor Free Member

    43 1
    Hi,

    I have a question regarding an EU company being contracted to provide services for a UK registered company at their office in London or France/Germany/Spain.

    Example;
    Company registered and based in an EU country other than ones where it will be providing services.
    Contracted by a UK registered Ltd to provide services at their office in London and also satellite offices in France/Germany/Spain.
    UK company will be invoiced in EUR with payment to bank ac in EU country of the contractors company.

    Any UK tax liability here?
    HMRC/IR35?

    Thank You,

    Mark
     
    Posted: Jul 13, 2019 By: THE_SPANNER Member since: Mar 16, 2019
    #1
  2. The Byre

    The Byre UKBF Ace Free Member

    8,635 3,353
    No.
     
    Posted: Jul 14, 2019 at 4:22 PM By: The Byre Member since: Aug 13, 2013
    #2
  3. John Hemming

    John Hemming UKBF Contributor Full Member

    91 10
    I don't think it is as simple as "No", but depends upon the details as to how much time is spend in which location and by whom.
     
    Posted: Jul 14, 2019 at 7:13 PM By: John Hemming Member since: May 23, 2019
    #3
  4. THE_SPANNER

    THE_SPANNER UKBF Contributor Free Member

    43 1
    It will mainly be dictated by project milestones, requirements and progress.

    But an estimate is that for the duration of the 6 month contract it will be 50% in London and the rest in the other EU offices.
     
    Posted: Jul 14, 2019 at 8:40 PM By: THE_SPANNER Member since: Mar 16, 2019
    #4
  5. lesvatadvice

    lesvatadvice UKBF Regular Free Member

    735 109
    'land-related' services have different rules re Place of Supply to General Rule services - this will affect whether the recipient has to use the Reverse Charge, or the supplier has to register for VAT in the UK.
     
    Posted: Jul 15, 2019 at 10:11 AM By: lesvatadvice Member since: Jul 7, 2011
    #5
  6. The Byre

    The Byre UKBF Ace Free Member

    8,635 3,353
    My saying 'No!' was the Bad News. Taxes are usually higher in places like France and Germany than in the UK. This is esp. true if you are non-resident. Here, non-doms get tax-breaks, in Germany, they pay 30%.

    Here, as in all things financial, talk to your accountant. And if you are doing business in France or Germany, you will need an account in those countries as well.

    There are funky things that a UK accountant might know and many funky things that they do not know, such as the jaw-droppingly great tax-breaks given to property ownership in Germany if that property is owned longer than ten years. It is for that reason that banks and other major institutions invest profits into social housing that at first sight, would seem to be a rotten investment as a result of rent controls and environmental laws.

    These tax breaks also help to stabilise the economy and force big companies to turn short-term profits into long-term equity. It also helps to provide people with very high-quality housing at affordable prices and keeps house prices fairly low.

    In many European countries, there are also savings and pension schemes that are tax-free going in and tax-free coming out.
     
    Posted: Jul 15, 2019 at 10:17 AM By: The Byre Member since: Aug 13, 2013
    #6
  7. THE_SPANNER

    THE_SPANNER UKBF Contributor Free Member

    43 1
    These contracts are for services - IT/systems related

    Makes me want to go into property....
     
    Posted: Jul 15, 2019 at 11:55 AM By: THE_SPANNER Member since: Mar 16, 2019
    #7
  8. TheoNe

    TheoNe UKBF Regular Full Member

    135 12
    I would seek some professional advice on this - just to be sure of your position.
     
    Posted: Jul 15, 2019 at 12:42 PM By: TheoNe Member since: Jul 6, 2019
    #8