Question: I was offered a job by a US software company.
On my first day at work they told me they couldn't actually hire me for legal and technical reasons.

So, now they want me to be a consultant and to become self-employed.

I had plans to buy a house in UK soon, and now I won't be able to do it unless I provide at least 24 months of invoices as self-employed.

Nobody is taking responsibility, they are blaming their 'solicitors'.

Therefore, my question is: how can I handle this situation (sudden request to change contract) in a professional way?

Answer: 
Tell them that **this is not what you signed up for**. They have gone back on your agreement and violated your contract, before you've even started work. Say **you regretfully must decline to work with them**.

And when they come back at you with nonsense about how you've signed a contract, remind them what that contract says. No court is going to side with them defending a contract that you're walking away from *because they have completely broken it already*.

Any further discussion takes place through your lawyer, *only*.

In the meantime, **call up your old supervisor, tell him it didn't work out, and ask whether there is room for you to return**. It hasn't been very long, so that may very well be possible. It might sound strange but **there's really no shame** in simply returning to your job. I work with three people who have gone off and varyingly worked for other companies for a bit (later realising their mistake) since they first became my colleagues.
At first sight it looks like there is a good legal case against the USA Company. However UK employment law gives very little protection to someone until they have been in a job for some time. Assuming the notice period on the employment offer was 1 month, the most you are likely to win from the company in a legal case is 1 month’s wages. (But you may get them to pay you 3 months wages, if they don’t wish their name to be all over the papers.)

**But trying to force a company outside of the UK to pay up, even when ordered by a UK court is expensive and likely to fail.**

Don’t sign a consultant contract with them in your personal name without getting very good legal advice!

Tell them you will need to consult with a UK lawyer on your return to the UK before you agree to anything. Get them to pay ALL your expensive for the trip the USA cleared in your bank account, before rejecting any offer they make!

If you create a limited company in the UK, and only sign any contracts in the company name you can protect yourself from most risks of them suing you. **To cover the costs of running the company etc, expect to get “paid” double what you would in a “job”.**

Personally I would get as much compensation out of them as possible due to them misleading you about the job and you leaving your past job, then find some other work. **Life is too short to a setup as complex as what they are trying to get you into.**