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  1. #1

    Nervous Newbie


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    Default Forced to use umbrella??

    Hello,

    I have worked via my own ltd company in the private sector for the past few years. Am now looking into my first public sector contract and have been told that the client requires contractors to use an umbrella company, not ltd.

    The recruitmemt team have put me in touch with their partnered umbrella firm but have said its my choice.

    My question is, can a client really force me to only use an umbrella company? If so, i might have to rethink given the impact.

    Thanks!!

  2. #2

    Some things in Moderation

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    Default

    Hi,

    I have moved you from the Umbrella sub-forum to the Public Sector IR35 sub-forum as this is the correct forum for your post, and I'm not sure if you're aware of the HMRC tax changes happening in the public sector.

    Quote Originally Posted by eek View Post
    What's Changed.

    The big change is that the person who is determining if your contract is or is not inside IR35 is no longer you the contractor but the Public sector department / agency you are working for. IR35 determinations have to be made within 31 days of the contract beginning otherwise the tax due becomes the responsibility of that department not other parties in the chain. This restricted time scale will mean that many departments have no choice but to decide on a blanket decision that everyone is inside IR35 when this begins April 2017.
    You're not the only one... http://www.jobserve.com/gb/en/search...A525151404F32/

    Anyway, have a read of this post: http://forums.contractoruk.com/publi...ml#post2360158

    Quote Originally Posted by eek View Post
    Continue using your limited company

    This may still be doable but in the same way that agencies don't want to put contractors on their payroll they are unlikely to actually want the hassle of withholding tax for them and paying it to HMRC.... As such going forward I suspect a lot of agencies will not support or allow the use of a limited company for public sector contracts inside IR35.
    Do your research here and you'll have more information to work with.

  3. #3

    More time posting than coding

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    Default

    Unfortunately we hear this way too often, the agency may not feel too comfortable with you using a company of your own choosing, however we have been successful with some agencies in getting them to allow the contractor to use us by submitting all of our corporate documents and undergoing a compliance questionnaire, so it may be worth a go!
    Just watching what I say

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