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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15975
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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If a self-employed consultant living in the UK is engaged by

Customer Question

If a self-employed consultant living in the UK is engaged by an overseas company to work on an overseas contract will the overseas company be able to pay consultants invoices without deduction for tax and/or NIC in UK because this is the responsibility of consultant when he submits his income tax return?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.


If you are working on a self-employed basis for an overseas company, they will not be obliged to deduct tax and NIC to pay to HMRC as they are beyond the reach of HMRC. They may deduct local taxes for which you may be entitled to claim relief against your UK tax liability through your self-assessment tax return if there is a double tax treaty between the UK and the country you are working in.

Even if you were working for an overseas company in the UK or for a UK company in the UK, you would only suffer tax deduction at source if you were operating within the Construction Industry Scheme on a self-employed basis or through PAYE as an employee.

I hope this helps but let me know if you have any further questions.