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Ltd companies stopped ?

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    Ltd companies stopped ?

    Hi folks!

    I have finished my last contract at the end of march'14 and have just started digging for a new one.

    Yesterday received an email from my last recruitment agent saying:

    The new government legislation has stopped applicants working as limited companies but we do have an umbrella company that might be of interest to you.

    As i have been working through my ltd company for years, it is a bit shocking to find out.

    Is this true? Any links? Topics on this forum?
    I am sorry if this is common question, have just registered to this forum.

    Many thanks!

    #2
    Is this for a public sector contract? If not then I would ask them what legislation they are talking about.

    Comment


      #3
      Is that all it said in the email or was there a load of preamble you've not posted?
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Thanks guys!

        It was private sector.
        This is all I have from recruitment agency so far, asked for more details. Will repost here!

        Comment


          #5
          Originally posted by administrator View Post
          Is this for a public sector contract? If not then I would ask them what legislation they are talking about.
          I can't think of any legislation that would apply to the public sector to prevent a contractor working through a Ltd.

          @OP the is clearly nonsense. I would either walk away, or find out the client if of interest, and let them know what's going on. Probably the former.
          The material prosperity of a nation is not an abiding possession; the deeds of its people are.

          George Frederic Watts

          http://en.wikipedia.org/wiki/Postman's_Park

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            #6
            Absolute nonsense - there has been a lot of new legislation passed recently but there is nothing that would prevent you working through your own Limited Company. Sounds as though the agency has misunderstood something and gone into panic mode
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            Comment


              #7
              I was thinking they were being utterly devious and taking contractors for a ride based on the fact they just happen to have an umbrella option available.

              I don't normally do name and shame but wouldn't mind knowing who this lot are.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by padaka View Post
                Hi folks!

                I have finished my last contract at the end of march'14 and have just started digging for a new one.

                Yesterday received an email from my last recruitment agent saying:

                The new government legislation has stopped applicants working as limited companies but we do have an umbrella company that might be of interest to you.

                As i have been working through my ltd company for years, it is a bit shocking to find out.

                Is this true? Any links? Topics on this forum?
                I am sorry if this is common question, have just registered to this forum.

                Many thanks!
                Possibly the reference here may be to the new agency legislation effective 06 April 2014. Basically to bring the self-employeds working through recruitment agencies, this legislation introduced in Budget 2014 has the potential to attack limited companies as well. This legislation takes priority over IR35.

                Comment


                  #9
                  Do you think they've misunderstood the onshore employment intermediaries: false self-employment?

                  Comment


                    #10
                    Originally posted by Craig@InTouch View Post
                    Do you think they've misunderstood the onshore employment intermediaries: false self-employment?
                    Certainly sounds like it doesn't it
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