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Contracting through a LTD Co whilst not being a director

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    #11
    If you are genuinely worried about not having your information in public domain, why not go through an umbrella ? May not be the most tax efficient route (depending on your day rate), but if privacy is a bigger concern surely that trumps take home pay.

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      #12
      If your concern is that some nutter will know your address then find an accountant or virtual office provider that will let you use their address as Your Co's.

      I assume your stalker already knows your name. Or are you trying to hide your new business from someone you may owe money to or an Ex?

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        #13
        Originally posted by jbond007 View Post
        If you are genuinely worried about not having your information in public domain, why not go through an umbrella ? May not be the most tax efficient route (depending on your day rate), but if privacy is a bigger concern surely that trumps take home pay.
        To be pedantic, an umbrella is a Ltd. co. and you're not a director, so yes it is possible.
        Will work inside IR35. Or for food.

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          #14
          Originally posted by TheCyclingProgrammer View Post
          No, there is no legal requirement. But its not unusual for clients (agencies at least) to insist that you are. I don't really know why.
          Clients don't care. It is the agencies who require this. As usual with agents, it is to mitigate their own risk. Having a regular employee of the LtdCo perform the work is actually less risk for them, but on the other hand they don't understand that concept - for them the LtdCo is a technical detail only there to minimise their liability, but for all other intents and purposes non-existing.

          They work on placing 'temps', not brokering the services of employees of micro-consultancies.
          Last edited by m0n1k3r; 8 June 2016, 11:31.

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            #15
            *** Update ***

            Thought I'd give an update on this topic as I posted the original question.

            I contacted a firm of reputable chartered accountants who informed me there was absolutely nothing wrong, illegal or immoral with not being a director.
            However, they said the agency could have issues as they require the contractor to be in control of the company.
            But, if I was the major shareholder, I would essentially be in control of the company.
            And also, being the major shareholder I would not be searchable on companies house.

            For a small fee, the company can also be registered at the accountant's office.

            I checked with the agency, explained the problem, and they are absolutely fine with it, and the client doesn't care.

            Problem solved!

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              #16
              Originally posted by SamuelP View Post
              And also, being the major shareholder I would not be searchable on companies house.
              As before, please see

              https://companieshouse.blog.gov.uk/2...trol-register/

              https://www.gov.uk/government/upload..._and_SEsv4.pdf

              "From 6 April 2016 companies, Societates Europaeae (SEs) and Limited Liability Partnerships
              (LLPs) must keep a register of individuals or legal entities that have control over them. This
              is in addition to keeping other information, such as a register of members and a register of
              directors.

              1.1.2 From 30 June 2016 onwards companies, SEs and LLPs will have to deliver this information
              annually to the central public register at Companies House when making a Confirmation
              Statement"


              If you have control of the company, within a year your details will be searchable.

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                #17
                I've been thinking about this since the OP posted and it just didn't seem right. I had a question about who is the director and does that person really understand their legal obligations or are you just using a mule. It also just seemed far too easy to do as the OP said and surely there is something else to consider. It just all seems too slack. MS's post explains it but it just doesn't seem to sit right that a major shareholder can effectively run a company with a puppet director in. Just seems far too open for abuse but apparently and reputable account said he can.

                I guess the major stopped is usually the agent wouldn't touch this set up but in this case they seemed to be OK.

                If the OP wants to claim a salary he's going to have to setup a contract of enjoyment, will have to pay NMW and will have to set up a company pension as part of the new rules etc?
                'CUK forum personality of 2011 - Winner - Yes really!!!!

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                  #18
                  Originally posted by northernladuk View Post
                  I've been thinking about this since the OP posted and it just didn't seem right. I had a question about who is the director and does that person really understand their legal obligations or are you just using a mule. It also just seemed far too easy to do as the OP said and surely there is something else to consider. It just all seems too slack. MS's post explains it but it just doesn't seem to sit right that a major shareholder can effectively run a company with a puppet director in. Just seems far too open for abuse but apparently and reputable account said he can.

                  I guess the major stopped is usually the agent wouldn't touch this set up but in this case they seemed to be OK.

                  If the OP wants to claim a salary he's going to have to setup a contract of enjoyment, will have to pay NMW and will have to set up a company pension as part of the new rules etc?
                  How many behind the scenes major shareholders actually pull the strings in big business? Quite a few I'd suggest, where they want to influence the company (and moreover an industry).
                  The greatest trick the devil ever pulled was convincing the world that he didn't exist

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                    #19
                    Originally posted by LondonManc View Post
                    How many behind the scenes major shareholders actually pull the strings in big business? Quite a few I'd suggest, where they want to influence the company (and moreover an industry).
                    Yeah but there is other governance and procedure in place in that model. The shareholder doesn't have access to the business bank account and so on. I see what you are saying but I don't think big business and our model compare. Just seems wrong. Maybe I'm over thinking it.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment


                      #20
                      Originally posted by LondonManc View Post
                      How many behind the scenes major shareholders actually pull the strings in big business? Quite a few I'd suggest, where they want to influence the company (and moreover an industry).
                      I'm sure that there will be ways round it - I know some people use convoluted offshore ownership structures for their businesses (not contractors that are using dodgy loans), but the trail gets cold once you hit places in Jersey and Guernsey.

                      I have a few companies on my watch list that I'm waiting to see what they publish because there structures are very "interesting" to say the least.

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