IR35: Foreign - Question 3
Can I avoid the IR35 legislation by using an offshore Personal Service Company?
No. If you would have been liable to UK tax and NICs if you had been employed
directly by the client, there will be a liability for UK tax and NICs under
the IR35 legislation, whether or not your Personal Service Company is located
in the UK.
If an offshore PSC fails to deduct and account for PAYE tax and NICs due
under the legislation, liability to pay tax and NICs can be transferred
to the worker. Action to recover employer's NICs not paid by an offshore
PSC could also include action against any assets of that company located
in the UK.
HMRC has powers to obtain details of payments to offshore companies from
the records of clients and agencies.
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