Working with another company - what are the legal implications?

[ZedS]

A friend of mine is starting up a marketing company of his own overseas in Dubai and wants to work with my web design company. (Is this the same as being affiliated?) He would charge clients for marketing packages which include website, social media, press etc. - he'd get their websites set up through me. From there, he'd make his profit and I'd take my own cut.

What are the legal implications behind this? How would this affect tax etc.?

Also, is this is a good idea? I'm considering it but already, I've had to reconsider my prices working with him and it adds a certain level of pressure. Advantage, I have clients being brought to me and the work benefits us both.

 

[Scalloway]

You would be his contractor. Are you employed or self employed at the moment?

 

[ZedS]

Self-employed right now.

 

[Scalloway]

If you are self employed he would just be another customer. I would strongly advise you to have a written agreement in case of any disputes. You particularly need to set out which country's law applied.

Hopefully someone else will be able to give some guidance on any special legal requirements for Dubai.

 

[ZedS]

I'm self-employed but am the director of the company (not a sole trader) - does this make a difference in terms of tax etc.?
Thanks, appreciate it.

 

[Scalloway]

The money receiveble will be taxable in the hands of whoever bills it at normal UK rates.

 

[ZedS]

Thank you

 

[solenlil]

It is for marketing packages which include website, social media, press etc. - he'd get their websites set up through me.