Reply to: Contract offer from Dubai Company

[Lance]

Sharia law, perhaps??

Hah.

Doesn't Dubai have a sepcial setup where they use Western laws of property? That way they can attract investment. Different to the wider laws in the rest of the country.

I'd still be very wary of any engagement like this as I don't trust what I don't understand.

[BR14]

It would be good if you had an idea. Always worth knowing how you would enforce payment.

Sharia law, perhaps??

[Old Greg]

Thx - I'll check it out


I guess that is true but to a non-UK/non-EU company.

What about if the time I spend working in their UK/EU offices are billed with VAT
and
Time spent working in non-UK/EU offices (if any) are billed outside the scope of VAT?


No idea
Should it be?
Should it not be?

I posted here hoping someone had a similar previous experience...

It would be good if you had an idea. Always worth knowing how you would enforce payment.

[jamesbrown]

VAT is based on place of supply rules. The general rule for B2B supplies is that the place of supply is where the customer belongs. There are special rules too, and they can get complicated (but they rarely apply).

Bottom line, the services you deliver in the UK are probably outside of the scope of UK VAT, but you will need to check the nature of the services in relation to any special POS rules.

OOS supplies are not included in your FRS turnover.

More here:

Work out your place of supply of services for VAT rules - GOV.UK

[MEMEME69]

Join IPSE and use their templates.

Thx - I'll check it out

This is tricky because you're providing a service in the UK. I would ask an Accountant.

I guess that is true but to a non-UK/non-EU company.

What about if the time I spend working in their UK/EU offices are billed with VAT
and
Time spent working in non-UK/EU offices (if any) are billed outside the scope of VAT?

Is the contract under the jurisdiction of the Dubai courts?

No idea
Should it be?
Should it not be?

I posted here hoping someone had a similar previous experience...

[jbond007]

He will??

Yikes ... should have read it properly

[Old Greg]

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.?

Is the contract under the jurisdiction of the Dubai courts?

[Lance]

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

You don’t want to be on FRS unless you are a very special case.
Talk to your accountant.
In fact your accountant will help with the other part of the query.

[BlasterBates]

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

This is tricky because you're providing a service in the UK. I would ask an Accountant.

[Lance]

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.?

Join IPSE and use their templates.

[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

[MEMEME69]

Is it dnata ?

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

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.

[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.