TekSystems (Allegis Group] - Beware!

[Lance]

I've never quite understood alls this focus on and demand for "own limited company". Why would it matter who owns the company? What should matter is whether the company exists and who has the right to sign on behalf of it.

If it's your own LTD then you aren't a competing agency/consultancy.

[m0n1k3r]

They have a duty to pay the money into a UK bank account controlled by the UK company that they have engaged with. We as UK companies have an obligation to be compliant with UK taxation laws. How we run our business, so long as it is legal, is NOTHING to do with the agency.

There is absolutely nothing in law that prohibits a German contractor from taking on a contract in the UK using his/her German GmbH, having a German bank account.

[LondonManc]

There is absolutely nothing in law that prohibits a German contractor from taking on a contract in the UK using his/her German GmbH, having a German bank account.

I was talking about a UK contractor

[m0n1k3r]

Then all they have to do is request a paying in slip or other proof.

Why should that be of concern to anybody else than a) the employer (e.g. "your own" limited company that operates PAYE for you) and b) the employee (e.g. yourself)?

[m0n1k3r]

Who knows. It's probably all an elaborate trap to wrap us up in tax.

I wouldn't mind a decree something along the lines of "25% of any contract must be paid through PAYE, while the rest can be recognised as commission due to the nature of the market in which the limited company operates" or similar. I'm sure we'd all accept a higher percentage of PAYE clout rather than all this messing around with dividends, expenses and IR35.

The USA and a number of EU countries have rules that say that the person must receive a salary (under PAYE) comparable to permanently employed people in similar roles, or else any dividends taken will be taxed as salary.

[northernladuk]

Why should that be of concern to anybody else than a) the employer (e.g. "your own" limited company that operates PAYE for you) and b) the employee (e.g. yourself)?

Are you really sure you are an employee of your company????

[m0n1k3r]

Are you really sure you are an employee of your company????

I am a director when I manage the company and enter into agreements on behalf of the company. I am a worker/employee when provide services that are billable to customers.

As far as PAYE is concerned, anybody who is on PAYE payroll is a 'worker' or an 'employee', even though any actual contract (if any) may say otherwise.

[m0n1k3r]

I was talking about a UK contractor

Even so, I could be spending most of my time in Germany and for that reason have a German GmbH while occasionally taking on a contract in good 'ole UK.

[northernladuk]

I am a director when I manage the company and enter into agreements on behalf of the company. I am a worker/employee when provide services that are billable to customers.

As far as PAYE is concerned, anybody who is on PAYE payroll is a 'worker' or an 'employee', even though any actual contract (if any) may say otherwise.

Are you sure you are an employee?

[Lance]

There is absolutely nothing in law that prohibits a German contractor from taking on a contract in the UK using his/her German GmbH, having a German bank account.

Correct. I'm not sure how many agencies would sign a contract with a foreign company though. I suspect they'd push someone doing that down the umbrella route.