Will HMRC see me as a company or a contractor?

[tmienterprises]

Hello All,

I was wondering if I could pick your collective brains on an issue that I face?

I have been in talks with an EU based company to do their sales in the UK - they dont have an UK address / prescence and so I was thinking of going down the sole trader / limited company (not decided which yet) route to work for them.

Given that they would be my only client, would HMRC see me as a contractor / employee in disguise? Or would they be happy as long as I pay whats due to them.

One point - all invoices that would be raised when I sell the product would be in the EU company's name and the money goes directly to them - dont know if this is important, but I thought I mention it anyway.

All thoughts gratefully recieved.

Thanks in advance,

Tmi

[elainec100@cheapaccounting]

Are you selling product - if so then you will not be a contractor (by which I assume you mean within IR35??)

[tmienterprises]

Thanks for the quick reply - I am selling software and yes I meant getting round the IR35 bit..

Now on to figuring out if I want to be sole trader or limited company..

[MrPAYE]

There are more issues to consider than your own personal position, i.e. whether your activities for the company in the Uk create a permanent establishment in which case corporate taxes would be due) and/or whether PAYE, VAT etc is payable.

Best advice - get the company to seek proper professional advice and for this to include looking at your own position.

[elainec100@cheapaccounting]

for sole v limited have a look here:

http://www.franklyaccounts.co.uk/gettingstructure.php

and then here:

http://www.franklyaccounts.co.uk/taxcompform.php

As said you will need advice for an accountant - I know a good one :D:D

[Maslins]

It all depends on how they treat you.

I'm guessing you'll be in full control over when/where you work, and they won't give two hoots whether it's you who makes the sale, or whether you get your mate Dave to do it.

Already sounds like you're running a completely independent business to me, unless the above assumptions are wrong?

How will they pay you? Are you paid purely on commission (ie no sales = no money for you), or will they pay you something on a monthly basis regardless of sales?

[tmienterprises]

It is a monthly payment, will a bonus element, based on sales..

The main reason they dont want to employ me is because they arent UK registered yet, but they plan to, once the sales reaches a certain point..