Contract offer from Dubai Company

[MEMEME69]

Hi Guys,

I have an initial 6 month contract offer from a company based and registered in Dubai to provide specialist system services to help another contractor rectify/re-implement a c*cked-up implementation not working as per the agreed design document.

As it is a multi-national company with international user base I will initially be working from their London office and travel to their other EU countries will be required at different stages/milestones of the project. I will also be working from home as much as possible.

There is no agent involved but direct approach by the client.

I wanted to ask if anyone here has provided services to a Dubai or middle-eastern country and what your experience was like and anything in particular which needs to be checked/agreed & signed off or avoided?

Any UK legal/tax implications?
VAT/IR35 oddities?
My UK Ltd co has been dormant for 12 months as I have been working a PAYE FTC contract - any points to point out here?
EDIT
I forgot to ask about travel, accommodation & subsistence (expenses) - client says they will be covered - they are in the travel business and said they will book hotels/flights as required. They have told me it's absolutely fine as it is how they deal with all their other contractors. Is this true?

Thanks,

Mark

[northernladuk]

Hi Guys,

I have an initial 6 month contract offer from a company based and registered in Dubai to provide specialist system services to help another contractor rectify/re-implement a c*cked-up implementation not working as per the agreed design document.

Who is the contract between? The Dubai entity or via the London office. What will you be paid in? Pounds from their UK bank account or from abroad?

Any useful info around the contract arrangment that might help us?

My UK Ltd co has been dormant for 12 months as I have been working a PAYE FTC contract - any points to point out here?

Is it dormant or is it just not trading? They are very different things.

I forgot to ask about travel, accommodation & subsistence (expenses) - client says they will be covered - they are in the travel business and said they will book hotels/flights as required. They have told me it's absolutely fine as it is how they deal with all their other contractors. Is this true?

Not really sure what you are asking here. Is the client lying to you? We'd need the name of the client to clarify that.

Are you asking if clients book hotels and flights as required then yes many do. Its better the contractor does and invoices the client for it if IR35 is an issue but that might to be the case here. It also allows you to maximise you points in cards and airlines but if they are willing to book it for you then go for it. Plenty of clients do that in the UK so I'm certain the Dubai outfits will.

If you are unsure the check the T&Cs of the contract and if it's not in there then ask them the clarify. Don't sign anything until you fully understand it.

EDIT: Also clarify if you are being paid for travel time or they expect you to do it on your time. What's the score if you expect to be travelling on Sundays etc.

[Lance]

I would expect that you will be engaged by their UK LTD subsidiary.
Who's the company on the contract? That's the key.

Also does the contract have any expense clauses? If not it needs to.

If the contract is with a Dubai company I'd walk away to be honest. Too much risk and a jurisdiction I don't undertsand.

[jbond007]

Hi Guys,

I have an initial 6 month contract offer from a company based and registered in Dubai to provide specialist system services to help another contractor rectify/re-implement a c*cked-up implementation not working as per the agreed design document.

As it is a multi-national company with international user base I will initially be working from their London office and travel to their other EU countries will be required at different stages/milestones of the project. I will also be working from home as much as possible.

There is no agent involved but direct approach by the client.

I wanted to ask if anyone here has provided services to a Dubai or middle-eastern country and what your experience was like and anything in particular which needs to be checked/agreed & signed off or avoided?

Any UK legal/tax implications?
VAT/IR35 oddities?
My UK Ltd co has been dormant for 12 months as I have been working a PAYE FTC contract - any points to point out here?
EDIT
I forgot to ask about travel, accommodation & subsistence (expenses) - client says they will be covered - they are in the travel business and said they will book hotels/flights as required. They have told me it's absolutely fine as it is how they deal with all their other contractors. Is this true?

Thanks,

Mark

Is it dnata ? There are two ways you can do this

• Get them to help you sort out a freelance visa in Dubai
• Or, get them to issue a contract via their UK arm

With freelance visa, you don't have to worry about IR35, etc since you'll be based in Dubai and carrying out work from there and travelling as and when required. With UK based contract, you'll have to work out IR35 and all the Ltd company liabilities. On the face of it, it may seem simpler to go for freelance visa option, but there are various overheads in Dubai to account for. I believe Dubai has now everything linked to EmiratesID (iincluding mobile phone connection). So you'll have to sort that out first if going to stay in Dubai.

Whichever option you choose, don't fall the old company trick of "we'll keep your passport safe with us" trick. While officially, it isn't required, many internal managers have no clue and may insist on it

[BlasterBates]

This looks like it is taxed in the UK as you will only be making short visits to other EU countries. You need to ask your accountant about VAT, that looks tricky as will be invoicing a foreign company.

I don't see any problem in the company booking and paying for accomodation and travel. In any case it doesn't look like you would have a choice.

[northernladuk]

With freelance visa, you don't have to worry about IR35, etc since you'll be based in Dubai and carrying out work from there and travelling as and when required.

He will??

I will initially be working from their London office and travel to their other EU countries will be required at different stages/milestones of the project. I will also be working from home as much as possible.

[MEMEME69]

Who is the contract between? The Dubai entity or via the London office. What will you be paid in? Pounds from their UK bank account or from abroad?
Any useful info around the contract arrangment that might help us?
Is it dormant or is it just not trading? They are very different things.
Not really sure what you are asking here. Is the client lying to you? We'd need the name of the client to clarify that.
Are you asking if clients book hotels and flights as required then yes many do. Its better the contractor does and invoices the client for it if IR35 is an issue but that might to be the case here. It also allows you to maximise you points in cards and airlines but if they are willing to book it for you then go for it. Plenty of clients do that in the UK so I'm certain the Dubai outfits will.
If you are unsure the check the T&Cs of the contract and if it's not in there then ask them the clarify. Don't sign anything until you fully understand it.
EDIT: Also clarify if you are being paid for travel time or they expect you to do it on your time. What's the score if you expect to be travelling on Sundays etc.

1. Contract will be between my UK Ltd co. & the Dubai LLC entity.
2. The agreed day rate (7 hours per day) is in GBP and that is what I'll be invoicing in.
3. Invoices presumably paid from abroad (Dubai LLC bank account).
4. My UK Ltd - no turnover in last 12 months, just making the required submissions.
5. I guess I was querying how 'expenses' are treated by contractors - if provision of the service requires travel what is the correct treatment & is there an IR35 factor?
6. There's nothing to sign yet as I'm putting together the contract and therefore I have control of what goes into it.
7. I only work Mon-Fri.
8. Any travel over an hour a day is chargeable.

At this point in time there is no requirement for me to be in Dubai at any point.

[MEMEME69]

I would expect that you will be engaged by their UK LTD subsidiary.
Who's the company on the contract? That's the key.

Also does the contract have any expense clauses? If not it needs to.

If the contract is with a Dubai company I'd walk away to be honest. Too much risk and a jurisdiction I don't undertsand.

The Dubai LLC entity will be on the contract.
Yes - I just need to come up with an expense clause - any templates/examples of an optimal on for an IT contractor working via a UK Ltd co.?

[MEMEME69]

Is it dnata ?

No.
There is no indication I am required to be in Dubai at all at this point.

[MEMEME69]

This looks like it is taxed in the UK as you will only be making short visits to other EU countries. You need to ask your accountant about VAT, that looks tricky as will be invoicing a foreign company.

I don't see any problem in the company booking and paying for accomodation and travel. In any case it doesn't look like you would have a choice.

Yes sounds about right as the revenue will be received by a UK company making PAYE staff wage payments.
I'm on the FRS and as the end client is outside the EU isn't it just a case of issuing invoices which are;

VAT exempt
or
Outside the scope of VAT