Contract with Chinese employer

nrtsmith

Hi,

I am not sure that this is right place to be posting this kind of question, but hopefully there will be somone on here that can help out.

I have been a contractor numerous times in the UK mostly working within big Financial or Public Sector firms, these have all been done working through an agency so the agency would pay me via an umbrella company and the umbrella company would pay my tax.

I recently decided to set up my own consultancy and try to win clients independantly. Luckily enough I have already won a large client in China and have recently travelled there to agree on a Statement of Work. I will have three memers of staff working part time for me and the majority of the work will be done remotly within the UK.

My problem is that I will be recieiving large sums of money at key stages of delivery, my predicament is that client will not pay this into a UK bank account because of the amount of money that will cost to do.

I am yet to set myself up as business and would like advise on the following:

When I set up a business what would be the best option i.e - sole trader, LTD company etc?

My girlfriend is Chinese and has two bank accounts over there what would the implications / options be to pay the money into those accounts and then transfare the money to the UK company account?

I basically don't want to pay tax in China and in the UK and then be left with a fraction of the amount of money that has been agreed upon.

Any feedback or advice on these matters is much appreciated.

Cheers

Nick

Annisele

If you're talking about large amounts of money, then I think you need paid-for legal advice. (I also think you might get more help over on the Small Biz and Charities board; you're not really talking about an employer/employee relationship here).

Be very careful about using your girlfriend's accounts - at the very least you run the risk of being accused of money laundering. Plus, how much would it really cost the client to remit the money to the UK? I'd be a little suspicious of their motives on that one.

nrtsmith

Thanks Annisele this thred is now on the Small Biz and Charities section.