• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Sole Trader query

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Sole Trader query

    Hi All

    Ive been working through my limited company for a client via an agency. As the agency contracts are coming to an end with the client, the client wants to hire me directly as an individual contractor (I assume this will be as a sole trader) on the same daily rate.

    Can you guys advise if I need to aware of any legal or tax implications moving from limited company to sole trader? And will my take home roughly be the same or less or higher?

    #2
    Why do you assume the client wants you as a sole trader?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by vik845 View Post
      Hi All

      Ive been working through my limited company for a client via an agency. As the agency contracts are coming to an end with the client, the client wants to hire me directly as an individual contractor (I assume this will be as a sole trader) on the same daily rate.

      Can you guys advise if I need to aware of any legal or tax implications moving from limited company to sole trader? And will my take home roughly be the same or less or higher?
      Check first that the end client doesn't want to contract directly with your Ltd.

      Comment


        #4
        I'd be surprised if the agency didn't have something in your contract preventing this. Also, why would you be moving to sole trader?

        Comment


          #5
          sole Trader

          I've checked with the agency and they don't have an issue me working directly with the client. And the client is mentioning that they are unable to contract with my entity but can contract with me directly as an individual.

          So I'm trying to understand if there any implications and how will It impact my take home salary and taxes?

          Thanks

          Comment


            #6
            Originally posted by BigRed View Post
            I'd be surprised if the agency didn't have something in your contract preventing this. Also, why would you be moving to sole trader?
            I've checked with the agency and they don't have an issue me working directly with the client. And the client is mentioning that they are unable to contract with my entity but can contract with me directly as an individual.

            Comment


              #7
              Originally posted by northernladyuk View Post
              Check first that the end client doesn't want to contract directly with your Ltd.

              Response from client - we are interested in contracting with you DIRECTLY not your company… we’re unable to contract with your entity BUT can contract with you as an individual. Not sure if this comes under sole trader or something else and how it works in terms of Taxes ?

              Comment


                #8
                If they have any sense it will be a Fixed Term Contract i.e. a Permie but with an end date.

                If they try any other way they are opening themselves up to an employment status issue & tax issue.

                If they Sole trader you you just need to not pay any tax & HMRC will assume they should have deducted PAYE.

                get some advice. Maybe use your IPSE legal question?

                You will have issues with the employer owning your IP & expecting exclusivity.
                Always forgive your enemies; nothing annoys them so much.

                Comment


                  #9
                  Originally posted by vetran View Post
                  If they have any sense it will be a Fixed Term Contract i.e. a Permie but with an end date.

                  If they try any other way they are opening themselves up to an employment status issue & tax issue.

                  If they Sole trader you you just need to not pay any tax & HMRC will assume they should have deducted PAYE.

                  get some advice. Maybe use your IPSE legal question?

                  You will have issues with the employer owning your IP & expecting exclusivity.
                  I have been advised - "we’re unable to contract with your entity BUT can contract with you for (6) months as an individual" after that they will see.

                  Comment


                    #10
                    Originally posted by vik845 View Post
                    I have been advised - "we’re unable to contract with your entity BUT can contract with you for (6) months as an individual" after that they will see.
                    Its a FTC, tell them you want the same money as before PAYE tax (they pay employees NI). You will concede Intellectual Property during their time & if you have other customers you will disclose them but no exclusivity.

                    I used to have 5 customers I had to give them up when I went permy.
                    Always forgive your enemies; nothing annoys them so much.

                    Comment

                    Working...
                    X