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Freelance recruiter in UK for company in HK, but supplying staff internationally - help!

Discussion in 'Accounting and Legal' started by AmandaHeadhunter, Jan 31, 2019.

  1. AmandaHeadhunter

    AmandaHeadhunter New Member

    I have recently been brought on by a recruitment agency in Hong Kong to head up their offshore division, which means recruiting staff on permanent placements for law firms in the Caribbean, Channel Islands and other offshore locations. I am trying to work out how to structure our agreement, and wanting to consider the best way of working. I am so confused that any help will be gratefully received!

    I am based in the UK and will work from home. I will work with candidates based all around the world who I will place in roles in offshore locations. I will work on a commission only basis, so until I make a placement and earn a fee, I don't get paid. I then get a certain percentage of that fee. That percentage is paid to me from the Hong Kong head office of the firm.

    I think that I should probably create a limited company and use that to invoice the head office for my work. But it is also likely that I will go over the VAT threshold. I will be invoicing a non-EU country for a placement that has been made in another non-EU country, so I don't think I need to add VAT, but I think I will still need to make a VAT return - is that correct?

    Since I will only be invoicing one company, is that de facto employment? In terms of my own tax, I guess I will effectively be employed by my limited company? Do I need PL insurance, any other insurance?

    In terms of the agreement between the head office and myself, what do I need to consider? Since they have not had anyone work on this basis before, the agreement is going to be drawn up and decided between the two of us, so I need some help to include any parts I think might be necessary to protect both parties. For instance, what happens if someone sues the firm, what happens if a fee needs to be refunded, what if I want to stop working for them, what if they want me to stop working for them, what country's law should it be written in, GDPR issues, what if the firm goes bust owing me money etc etc etc. And I know I haven't thought of everything!!

    At this point I know I need advice, but I don't even know whether I need someone who does corporate law, employment law, cross-border law, or any other kind of law. Even a friendly nod in the direction of the right kind of help would be great! Thanks in advance!!

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