working for Italian compamy

**MyUserName** · 17 December 2012, 15:46

Originally posted by jmj121 View Post

Hi,

i have been contracting to an Italian company for 9 yrs and on my last visit they decide to change my payment terms..... they did not ask me just did it !!

so i need to understand were i stand and now i'm without a payment until feb....

i work in Europe and Asia and the UK, but only ever work for this company.
I was asked to set myself up as a self employed person as it was easier for them, due to tax implications for them..... all was well for 9 years BUT 3 mths ago the company was sold so now its all change !!!

what do you all suggest ?

Cheers...

What does your contract say?
What did they say when you queried them about the payment terms?
Do you work through a Ltd company?

**cojak** · 17 December 2012, 15:50

And do you pay tax in the UK?

**northernladuk** · 17 December 2012, 16:08

Originally posted by jmj121 View Post

Hi,

i have been contracting to an Italian company for 9 yrs and on my last visit they decide to change my payment terms..... they did not ask me just did it !!

so i need to understand were i stand and now i'm without a payment until feb....

i work in Europe and Asia and the UK, but only ever work for this company.
I was asked to set myself up as a self employed person as it was easier for them, due to tax implications for them..... all was well for 9 years BUT 3 mths ago the company was sold so now its all change !!!

what do you all suggest ?

Cheers...

Did you fully understand the impact of the tax implications on you when they did this?

**jmj121** · 17 December 2012, 17:50

hi,

yes i pay tax in the UK and have done for the last 9 yrs....

its was all set up at the initial stages for there benefit, as i was told that they would incur a 29% employment tax. they cover all my accounting costs ect, so i'm not at any financial loss.

They just payed me in advance, so that i could cover the car lease ect... As i had to take out a personal lease. again all these costs were covered... and the contract was such that "if" in the event of termination they would cover all exit costs.

the contract is a 3yr rolling contact and has not changed from the original one set up 9yrs ago.

somebody did tell me that as i exclusively work for them, and have done for 9 yrs that in the EU i would be seen an an employee ?? but im not sure about that one ????

**SueEllen** · 17 December 2012, 17:53

I would start looking for a new role.

If they sold the business and changed the payment terms telling you at the last moment then it's not a company you really want to stick with.

**jmj121** · 17 December 2012, 17:59

Originally posted by SueEllen View Post

I would start looking for a new role.

If they sold the business and changed the payment terms telling you at the last moment then it's not a company you really want to stick with.

the only thing they want to change is payment in arrears... the General Manger ,who is a guy i have worked with for all this time and trust has assured me that i'm not to worry.... and that its just the way the new company operates.

The old company was family run and the old man, is 78 and wanted to buy a desert island with his 58 million !!

**bless 'em all** · 17 December 2012, 18:53

Originally posted by jmj121 View Post

General Manger ,who is a guy i have worked with for all this time and trust has assured me that i'm not to worry.... and that its just the way the new company operates.

Unless his assurances are bankable I'd be looking at the T&C's very closely indeed. Although payment in arrears is pretty much business standard, the fact that your 'employer' has made this decision unilaterally should give you an idea about how much they really care about you.

**jmj121** · 17 December 2012, 18:57

hmm i get your point..... looks like its tough luck.

shame i cant be made an employee..... i need to look into my rights ect.

**northernladuk** · 17 December 2012, 19:09

Originally posted by jmj121 View Post

hmm i get your point..... looks like its tough luck.

shame i cant be made an employee..... i need to look into my rights ect.

I would argue in the eyes of HMRC you have been an employee for a very long time. Saying that the overseas company might be your get out. Have you seen the other thread about contract for an overseas company. Seems to be a bit of confusion going on over there..

http://forums.contractoruk.com/busin...n-company.html

Isn't IR35 a problem here?

working for Italian compamy