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Contract Newcomer Umbrella Scenario

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    #31
    Hi Lisa,

    The indemnity letter says:

    "I hereby authorise you to enter into any contract and/or agreement on my behalf.
    In consideration of your providing services, entering into any contract and/or agreement on my behalf and execution of the same, I agree to obtain professional indemnity insurance and any other insurance required under the terms of the contract/agreement.

    I agree to pay all my taxes and social insurance contributions where necessary.

    I also agree to undertake to indemnify Affiliate Contracting Limited and everyone of your associated companies and of the companies, under the direct or indirect control of the aforesaid parent and holding companies or either of them and each and everyone of the directors or employees of any of the companies named or referred to above (including yourselves) in whatever capacity and the respective successors and estates of such companies and persons against all actions, suits, proceedings, claims, demands, costs, expenses, all taxes, including social security contributions and/or health insurance contributions, outgoings and fiscal or other liabilities whatsoever which may be taken or made or sought from or against them or any of them or be incurred or become payable by them or any of them by reason of, arising from or otherwise in connection with the Company or any indemnities provided such as those contained in the Contract/Agreement.

    This agreement is to be governed and construed in accordance with the laws of the Republic of Ireland and the parties hereto expressly submit to non-exclusive jurisdiction of the Republic of Ireland Courts in connection herewith.

    Agreed and accepted for and on behalf of..."

    I must say that I wasn't expecting this kind of letter to sign.

    They didn't told me about the % of gross income that I will be paying the tax, they told me a number, that is less than 30% of the gross income.

    Comment


      #32
      I would find another umbrella as the indemnity is too wide.

      For example why should you indemnify their unnamed associate companies when you have nothing to do with them? Why should you be indemnifying individuals of that company when any action they take will be on behalf of that company, so the company is liable?
      "You’re just a bad memory who doesn’t know when to go away" JR

      Comment


        #33
        Originally posted by Inq View Post
        Hi Lisa,

        The indemnity letter says:

        "I hereby authorise you to enter into any contract and/or agreement on my behalf.
        In consideration of your providing services, entering into any contract and/or agreement on my behalf and execution of the same, I agree to obtain professional indemnity insurance and any other insurance required under the terms of the contract/agreement.

        I agree to pay all my taxes and social insurance contributions where necessary.

        I also agree to undertake to indemnify Affiliate Contracting Limited and everyone of your associated companies and of the companies, under the direct or indirect control of the aforesaid parent and holding companies or either of them and each and everyone of the directors or employees of any of the companies named or referred to above (including yourselves) in whatever capacity and the respective successors and estates of such companies and persons against all actions, suits, proceedings, claims, demands, costs, expenses, all taxes, including social security contributions and/or health insurance contributions, outgoings and fiscal or other liabilities whatsoever which may be taken or made or sought from or against them or any of them or be incurred or become payable by them or any of them by reason of, arising from or otherwise in connection with the Company or any indemnities provided such as those contained in the Contract/Agreement.

        This agreement is to be governed and construed in accordance with the laws of the Republic of Ireland and the parties hereto expressly submit to non-exclusive jurisdiction of the Republic of Ireland Courts in connection herewith.

        Agreed and accepted for and on behalf of..."

        I must say that I wasn't expecting this kind of letter to sign.

        They didn't told me about the % of gross income that I will be paying the tax, they told me a number, that is less than 30% of the gross income.
        I agree with Sue Ellen - I wouldn't touch them with a bargepole. You are paying a company to be responsible for your tax affairs and yet they want you to indemnify them against any action taken to recover unpaid taxes I don't know for a fact but I would assume that, if they are promising you a high take home pay percentage and want you to indemnify them against claims for taxes owed that they are operating a tax avoidance scheme. As I said to you before, my advice would be to contact an accountant in Hungary and see what they advise. Are you prepared to say exactly what percentage take home pay they are offering you?
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        Comment


          #34
          According to them, I will be taking home between 85% and 88% of my gross income. This is too much I guess.
          They told me that I will be doing another contract in Hungary to declare a lower gross income to the local authorities, so that the taxes will be lower there.

          By contacting a local accountant in Hungary, do you think they could do the same as umbrella does? Issue invoices to the agency and take care of my timesheets?

          Comment


            #35
            Originally posted by Inq View Post
            Hi, I am a resident outside of UK (latin country) preparing to move (relocate) to the new country.
            So you're resident outside the EU, working in Hungary, using an umbrella company from Eire, and asking for advice from ContractorUK
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              #36
              I am resident in Portugal (European Union country). Asking some advice here because the recruiting agency is from UK, the umbrella is from UK, only the working place will be in Hungary. Also because this is the best site for contractors advices.

              Comment


                #37
                Originally posted by Inq View Post
                I am resident in Portugal (European Union country). Asking some advice here because the recruiting agency is from UK, the umbrella is from UK, only the working place will be in Hungary. Also because this is the best site for contractors advices.
                If the umbrella is from the UK, why does the indemnity say that the applicable law is that of the Republic of Ireland?
                Best Forum Advisor 2014
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                Comment


                  #38
                  Originally posted by Inq View Post
                  I am resident in Portugal (European Union country). Asking some advice here because the recruiting agency is from UK, the umbrella is from UK, only the working place will be in Hungary. Also because this is the best site for contractors advices.
                  Well I suppose he didn't say advise......
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                  Comment


                    #39
                    Originally posted by TheFaQQer View Post
                    If the umbrella is from the UK, why does the indemnity say that the applicable law is that of the Republic of Ireland?
                    They clearly have a UK office address but are registered in Ireland.
                    "You’re just a bad memory who doesn’t know when to go away" JR

                    Comment


                      #40
                      Originally posted by Inq View Post
                      I am resident in Portugal (European Union country). Asking some advice here because the recruiting agency is from UK, the umbrella is from UK, only the working place will be in Hungary. Also because this is the best site for contractors advices.
                      And do what Lisa suggested.

                      There is an entire forum board dedicated to the UK taxman chasing people, a long thread about the German taxman chasing people across countries and posts about random other European taxmen e.g. Norwegian, Belgium, Dutch getting their tax money one way or another.

                      I wouldn't like to see a post in 3 to 5 years time on how the Hungarian taxman is chasing you.
                      "You’re just a bad memory who doesn’t know when to go away" JR

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