Supplier Project Agreement / Can a foreign company be a party

[ammark]

I have a potential contract offer in the UK and I am thinking of whether to setup a limited company or choose an umbrella company. Key objective is to maximize the take home.

However, another idea came to my mind of making a non-UK company as my umbrella company and a party to contract with the client. My brother owns an IT company in Dubai, and making his company party to the contract, as a supplier, which supplies my technical services to the end client. Can it work? Can a non-UK, a Dubai based company become part of supplier services contract, where services are being provided in the UK?

Ideally I would like my brother's company to invoice the client and get paid in their Dubai GBP account. What about VAT? I believe they can't charge VAT for these services?

Any help would be appreciated.

[northernladuk]

Question is will an agent or client engage a company based in Dubai when there is a raft of UK guys with nice safe UK LTDs. The answer is no.

[TykeMerc]

Question is will an agent or client engage a company based in Dubai when there is a raft of UK guys with nice safe UK LTDs. The answer is no.

What he said.

There's nothing stopping you supplying your services as an employee of your brothers company other than the willingness of the agent or client to deal with that company. I'd say the odds on that are a bit thin at best.

As to the tax treatment, the work will be done in the UK and not Dubai, it could well get rather complex and you will need the advice of an expert in UK and Dubai tax law, it's far from simple or without risk. Of course you can sign up to one of the 85% plus take home schemes and enjoy the fun and games a few years down the line when HMRC carve you a new one.