Hi guys,
I am very new to contracting, but want to try if it's for me and was offered a 6-month contract with a company registered in China - not a UK-taxpayer. They want to hire me as a contractor - not an employee, and gave me a sample contract to review. I want to start with a self-employed option, as it looks like the easiest at the moment.
However, after reading all the forums and the tax office website, I figured there can be some problems with defining my status for the purpose of tax, because, if I understood correctly, a self-employed person does not take instructions from the client and there is no mutual obliations involved (in opposite to an employee). Maybe I should negotiate the re-wording of the contract, or how self-employed contractors would usually do it?
The main points in the contract, which I am worrying about in relation to look like an employee rather than self-employed:
1. guaranteed 6 month work, based on 5 day working week, 7.6 hrs a day.
2.Should the Consultant wish to take unpaid leave this shall be agreed one week in advance or by mutual agreement.
3. Consultant shall provide the Client with services relating to ......and report to NAME
4. . Any overtime (over and above 38 hours) shall be paid in addition with the caveat that overtime work shall need prior approval by the Client from the Consultant prior to being charged to the Client.
5.Termination of this agreement can be executed by the giving of one month’s notice by either the Consultant or Client
They also want all fees paid by the Client to the Consultant shall be inclusive of taxes and other similar local or international charges.
Can you advice please and give your opinion if I should worry about the contract wording, or it is not that complicated in real life? Thanks a lot!
I am very new to contracting, but want to try if it's for me and was offered a 6-month contract with a company registered in China - not a UK-taxpayer. They want to hire me as a contractor - not an employee, and gave me a sample contract to review. I want to start with a self-employed option, as it looks like the easiest at the moment.
However, after reading all the forums and the tax office website, I figured there can be some problems with defining my status for the purpose of tax, because, if I understood correctly, a self-employed person does not take instructions from the client and there is no mutual obliations involved (in opposite to an employee). Maybe I should negotiate the re-wording of the contract, or how self-employed contractors would usually do it?
The main points in the contract, which I am worrying about in relation to look like an employee rather than self-employed:
1. guaranteed 6 month work, based on 5 day working week, 7.6 hrs a day.
2.Should the Consultant wish to take unpaid leave this shall be agreed one week in advance or by mutual agreement.
3. Consultant shall provide the Client with services relating to ......and report to NAME
4. . Any overtime (over and above 38 hours) shall be paid in addition with the caveat that overtime work shall need prior approval by the Client from the Consultant prior to being charged to the Client.
5.Termination of this agreement can be executed by the giving of one month’s notice by either the Consultant or Client
They also want all fees paid by the Client to the Consultant shall be inclusive of taxes and other similar local or international charges.
Can you advice please and give your opinion if I should worry about the contract wording, or it is not that complicated in real life? Thanks a lot!
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