Should I take the option to be self-employed?

mameha

I am currently a full time employee for a company in Asia. I quit to move back to the UK, but my employer wants to keep me and they have offered to employ me remotely from the UK. They are flexible on how we do this, but we do not know legally what is possible.

1) Should I aim to be self employed in this situation or is there a more beneficial way?
2) Is it even possible to be self employed in this way? It sounds like I 'employed' according to the HMRC definition, however my employer is in Asia so maybe this is a grey area?

Additional Info:
- I can probably invoice my employer in an irregular way for specific services/projects if necessary to make it look less like a regular employment.
- My company has a UK office, but I think the UK office cannot employ me because my work is more for the HQ in Asia (I have nothing to offer the small UK sales office being an IT guy)

My goal is not to avoid tax (though of course I would like to avoid overpayment), my goal is to realise my dream to live in the countryside and work from home. I have a great opportunity here, but don't want to commit a crime or shoot myself in the foot tax-wise!

John_Pierpoint

As your customer is in a foreign land, I just don't see how HMRC is going to go after them in an attempt to get the employer's National Insurance out of them.
As you will be an exporter, it might be worth checking out the VAT angle too.

mameha

I called the HMRC and they said that I should just contact my local tax office in the UK and the compliance officer there will set up a "DPNI" (direct PAYE scheme?) for me.

However, I have no idea what the implication of this will be for me. Will that sting me for excessive tax?

BoGoF

It means you will be the one required to operare PAYE on the remuneration paid to you by your foreign employer.

You will not be stung for tax just paying what you would be had your employer had a UK base.

mameha

So it looks like my options are like this:
1) registering as self employed
2) setting up my own DPNI
3) having my salary paid from HQ to the UK office and get the UK office to handle the tax deductions etc.

Any thoughts on which would be best for me from tax standpoint? I am not sure whether (1) is really an option, as HMRC told me I should do (2) when I called them.

BoGoF

Option 1 may not be an option, depends under what terms and conditions you are engaged under.

chrismac1

Or, Google IR35 and negotiate and operate a contract with your employer which means you qualify as self-employed! Personally on the basis of your post you should be able to do this. By definition your role will give you a high degree of direction and control over the way the work is done, which is a key test of being self-employed. You sound like you are in the driving seat and your "employer" will happily accede to any reasonable request on contract terms, which will potentially save you a shedload of UK tax.