foxnet22 Posted March 19, 2015 Report Share Posted March 19, 2015 I've just recieved an email from agency that supplies me work stating from 6th April I cannot get any more work from them as self employed sole trader.I now must become a limited company.they also offered to put me in contact with an accounting company who can help set all this up.sounds abit fishy to me can anyone shed some light on this matter thanks. Quote Link to comment Share on other sites More sharing options...
pegleg31 Posted March 19, 2015 Report Share Posted March 19, 2015 It's so they can still employ you. As a sub contractor they're supposed to set you on after 12 weeks. I had it last year, to them to do one and they kept using me anyway. Quote Link to comment Share on other sites More sharing options...
figgy Posted March 19, 2015 Report Share Posted March 19, 2015 The angency can work round those rules if they want to. More and more people are going ltd company and it won't be long before mr tax man looks at ways of shafting you. Quote Link to comment Share on other sites More sharing options...
MartynGT4 Posted March 19, 2015 Report Share Posted March 19, 2015 alternatively you could use the services of an umbrella company provider.... http://www.umbrella.co.uk/ P.S. I haven't used that company myself so the link is only an example, best if you do some research etc. Quote Link to comment Share on other sites More sharing options...
chady Posted March 19, 2015 Report Share Posted March 19, 2015 Forget umbrella company's it's cheaper just to go ltd. and pay an accountant! And your better of. Quote Link to comment Share on other sites More sharing options...
grrclark Posted March 19, 2015 Report Share Posted March 19, 2015 You can write off the accountant costs as a genuine business expense if you go it alone. If businesses are being scrutinised under IR35 rules then it is often easier for them to deal with other limited companies. If you are 100% engaged in activities for them and a sole trader then effectively you are an employee and they need to pay NI for you and complete PAYE records. Quote Link to comment Share on other sites More sharing options...
discobob Posted March 20, 2015 Report Share Posted March 20, 2015 Umbrellas have a limited life span with the announcement about not being able to claim expenses from 2016 (budget red book) The tax man/government is definitely after ltd as well - wait and see Quote Link to comment Share on other sites More sharing options...
grrclark Posted March 20, 2015 Report Share Posted March 20, 2015 Umbrellas have a limited life span with the announcement about not being able to claim expenses from 2016 (budget red book) The tax man/government is definitely after ltd as well - wait and see If people are abusing the system through a ltd company then they deserve to be investigated. There is a huge scope of legitimate tax management opportunities as a ltd business, but people still need to play fair. Quote Link to comment Share on other sites More sharing options...
MrM Posted March 20, 2015 Report Share Posted March 20, 2015 No need to incur the cost of an accountant at this stage. I use an online company set up agent and they did all the web filling at companies House, and legal stuff. cost £50 I think. Depending on your turnover you may not need to file audited accounts anyway. Quote Link to comment Share on other sites More sharing options...
MartynGT4 Posted March 20, 2015 Report Share Posted March 20, 2015 Even hearing 'IR35' these days sends shudders down my spine... Quote Link to comment Share on other sites More sharing options...
amateur Posted March 20, 2015 Report Share Posted March 20, 2015 (edited) As written above, if you work mainly for the one agency, the agency will be at risk of being assumed to be your employer and incur employers NI charges, and also have to set you up in a pension scheme. All of this is avoided by their dealing only with limited companies. The major advantage of using a limited company is that, if you are in the higher tax bracket, you can pay yourself in dividends at a lower tax rate (once you have paid yourself minimum wage) rather than at the higher tax rate, if you made all your payment to yourself as salary Also, if you have a non-taxpaying wife, it would be sensible to pay her a wage (as, say, company secretary) to use up her tax allowance. As employees of your own company, you would still need work-place pensions. As always, however, if this does not make sense, talk to a Chartered Accountant No need to incur the cost of an accountant at this stage. I use an online company set up agent and they did all the web filling at companies House, and legal stuff. cost £50 I think. Depending on your turnover you may not need to file audited accounts anyway. This too for the initial set-up, but seek advice on your remuneration strategy Edited March 20, 2015 by amateur Quote Link to comment Share on other sites More sharing options...
discobob Posted March 20, 2015 Report Share Posted March 20, 2015 If people are abusing the system through a ltd company then they deserve to be investigated. . Totally agree - I have arguments with my accountant over the amount of salary I take. However they are after us to try and deem us as an employee of the client (IR35) when we get absolutely no employee benefits (holidays/sick/pension etc....) as well as having to pay employers and employees NICS The original draft for IR35 put the onus on the client/agency for the extra tax liability when Hector deemed that it came into play. After some heavy lobbying it was put back onto the contractor who was providing services in good faith Quote Link to comment Share on other sites More sharing options...
kent Posted March 21, 2015 Report Share Posted March 21, 2015 speak to a proper qualified accountant if you don't already understand all the implications. Setting up as ltd isn't hard, there is so much being said here that isn't 100% correct that you honestly have only one call to make and that is to a decent accountant, have your list of questions prepared. Good luck whatever you chose to do just make sure its your choice Quote Link to comment Share on other sites More sharing options...
bullet1747 Posted March 21, 2015 Report Share Posted March 21, 2015 I've just recieved an email from agency that supplies me work stating from 6th April I cannot get any more work from them as self employed sole trader.I now must become a limited company.they also offered to put me in contact with an accounting company who can help set all this up.sounds abit fishy to me can anyone shed some light on this matter thanks. We use a few contractors ,end of last year they were told they had to go limited end of the day it's better for you Quote Link to comment Share on other sites More sharing options...
KFC Posted March 21, 2015 Report Share Posted March 21, 2015 Try Tony Blair's creation of an LLP. I think they cost about £45 a year for an agent to set up a list of 'member companies' who'll all be registered off-shore. Quote Link to comment Share on other sites More sharing options...
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