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In the UK we have IR35 and AFAIK in other countries there are similar laws in place to prevent people working as contractors for their own limited company when
by tomduncalf 4y ago
In the UK we have IR35 and AFAIK in other countries there are similar laws in place to prevent people working as contractors for their own limited company when they "should" be an employee (determined by various factors), and as far as I know it applies regardless of whether both entities are in the same country or not. Of course, you can be careful with contracts and working conditions etc. to try to avoid this, but it's definitely not trivial and something of a grey area.
- vladvasiliu 4y agoAccording to [0], this seems concerned with "taxation fairness"; basically making sure you don't take advantage of some possible lower tax rates (I suppose, I don't live in the UK) levied on companies instead of workers. It's my understanding that, basically, if you're an "outsourced employee", you have to pay the same things as if you were an actual employee: so salary, income tax, whatever else HMRC requires, rather than milking the dividends... It doesn't seem to me that the actual setup is illegal. [0] https://www.gov.uk/guidance/understanding-off-payroll-working-ir35 https://www.gov.uk/guidance/understanding-off-payroll-workin... --- edit: In France, I'm not aware of a similar law in regard to taxation. However, there's a "worker protection" law that says that if you're only working for a client, you are subordinate to them, and basically the only difference between an actual employee and you is that you're outsourced, you can then sue the company to be "promoted" to an internal employee, and you're basically guaranteed to win.