Contracting with a German company as a freelancer (Ltd Co)

FlaatusGoat

Has anyone ever tried working for a European company through their Ltd Co?

I've reviewed a draft contract, it's quite unusual in that the arrangement involves invoicing the end-client, sending a copy of the invoice to the recruiter, and then paying the recruiter their commission.

Normally the relationship is purely through the recruiter, so you would invoice them and they would invoice the end client.

Any thoughts? Obviously don't want to fall foul of IR35 either.

DullGreyGuy

Yes, but it was pre-Brexit and so less issues with VAT, potentially right to work - not an issue for me as still an EU citizen etc 

Coincidently know a recruitment agent that specialises in InfoSec contract roles into the German market and was chatting about things the other day. Obviously different countries have different laws and so have different practices. Even in the UK have known one occasion when contracts were direct with the client and then having to pay the commission to the agent rather than cash flowing via the agent. Obviously make sure its paid is paid so you don't have to pay the agent before you receive the funds from the client 

Just to be clear, as you are UK based IR35 still fully applies but because your client is overseas then it goes back to the old days of you being responsible for the determination and the consequences if the determination is wrong. 

Grumpy_chap

I have worked for overseas Clients.  The biggest change I needed to to the business insurance as many policies only cover UK-Clients by default.  That is something for the OP to confirm.

For a wholly overseas Client, the off-payroll rules do not apply. Therefore, the end client does not need to determine IR35 status, and the responsibility of determining IR35 status is then passed back to the contractor.