First Contract, Please Help !

[Sheroo]

Hi folks,

I have been contacted by a company in China that, initially, wanted to employ someone to expand their services in the UK.

Having gone through the initial process, they want me to be that person.

My confusion/concern has arisen from the way they wish to 'employ' me. They have suggested I set up a limited company and they sign a consulting agreement with me to provide services as a consultant. This they advise is the easiest and quickest way to get things moving.

So there's me all excited by this and then suddenly someone mentions IR35, setting up a company, umbrella companies etc !!

The consulting agreement they have sent me details that I should invoice them every month and we agree to a fixed monthly fee etc however it also details that I should be working 37.5 hours per week, entitled to holiday/sickness pay, covered for indemnity, can claim reasonable expenses etc. In essence everything that would land me within IR35 - I have suggested that we change these but they seem somewhat reluctant.

So I guess I am somewhat lost as to what to do next. I think the umbrella company route may be the best which will allow me to take home a decent crust. However would that mean that the umbrella company will have to sign a contract with the Chinese firm and will this contract be so complex that it may scare the Chinese away all together ?

Any advise would be most welcome.

[scooterscot]

Please read through the form you posted in, similar questions have been posted many times before. Although perhaps not relating to worling for a company based in China.

A monthly fixed rate sound somewhat odd.

Read the form.

[DiscoStu]

Please read through the form you posted in, similar questions have been posted many times before. Although perhaps not relating to worling for a company based in China.

A monthly fixed rate sound somewhat odd.

Read the form.

forum X 2

working

sounds

HTH

[Wilmslow]

Hi folks,

I have been contacted by a company in China that, initially, wanted to employ someone to expand their services in the UK.

Having gone through the initial process, they want me to be that person.

My confusion/concern has arisen from the way they wish to 'employ' me. They have suggested I set up a limited company and they sign a consulting agreement with me to provide services as a consultant. This they advise is the easiest and quickest way to get things moving.

So there's me all excited by this and then suddenly someone mentions IR35, setting up a company, umbrella companies etc !!

The consulting agreement they have sent me details that I should invoice them every month and we agree to a fixed monthly fee etc however it also details that I should be working 37.5 hours per week, entitled to holiday/sickness pay, covered for indemnity, can claim reasonable expenses etc. In essence everything that would land me within IR35 - I have suggested that we change these but they seem somewhat reluctant.

So I guess I am somewhat lost as to what to do next. I think the umbrella company route may be the best which will allow me to take home a decent crust. However would that mean that the umbrella company will have to sign a contract with the Chinese firm and will this contract be so complex that it may scare the Chinese away all together ?

Any advise would be most welcome.

A more friendly reply Sheroo!

Are you wanting be become a long term contractor? If not, and it is to get up and running with this contract, umbrella is the easiest way to get up and running. I suggest Mimax - they do me proud.

How long is the contract for?

Sounds interesting!

[Sheroo]

Hi Wilmslow,

Thanks for the constructive response, initially a 12 month contract with a view to extending dependant on good my work is, hopefully it will be a long term thing.

I have been browsing the forum for quite a while but cannot find much in the way of advice considering this company its outside Europe.

I think I may go down the umbrella route, the client has asked whether there are any umbrella companies in Hong Kong, I doubt that would be the case as it is a UK specific issue.

If anyone knows otherwise, it would be appreciated.

[TheFaQQer]

Sounds like a fixed term salaried position to be, rather than contracting.

[Sheroo]

A fixed term salaried post would suit me fine, but it's messing about with all this setting up a company and then contractor role that is causing issues.

It seems they want a bit of both which will only result in me paying higher taxes.

[BrowneIssue]

Hi folks,

I have been contacted by a company in China that, initially, wanted to employ someone to expand their services in the UK.

If I were to tell you I have been getting about three emails per week like that for, ooh, ten years, would you be surprised?

Any advise would be most welcome.

a) If the initial contact was by email, just run away. You are close to getting involved in, at best, being ripped off, at worst, international money laundering.

b) Post the original contact message on here. (Remove the contact details, obviously, as you won't be wanting us to pinch your 'opportunity' .) Then see what others have to say about it.

c) 'Advise' is a verb, the noun is 'advice'.

[Sheroo]

Hi BrowneIssue,

Thanks for the English lesson

The company didn't actually approach direct, it was through a reputable UK agency with whom I have spoken to. Further, I am already aware of the Chinese company as they have worked in the UK before, I have also had a number of discussions with them by phone, the next step is to meet, either here or in China.

I am 'green' in the contractor business I admit, but not in the market that we (myself and the Chinese) operate in.

I's just this darned contract issue that is problematic.