question on ltd/employment

[Slx]

Hi, I've been working as contractor since 2018 on outside ir35 contracts as director of my limited. I pay myself a salary monthly between 15-20k per year, getting P60 from my company only.

I am getting contracts around 8-9 months per year. Each time I get a new contract I am being asked by agencies to justify the 'gap in employment' as it is not covered by start/end of the assignments.

My view is that I am employed continously by my limited company whenever my company deliver services or not. I end up in unnecessary looping of what is called 'employment references' which I would like to avoid by simply provide a single continously employment by my ltd which is eventually my accountant.

If you're an employee of TCS or Capita and working on 4 different projects or none, the employer is the company itself and not each individual client. I feel the same about my assignments and not sure if it is a CV issue that I need to fix or legal one that will help me to avoid the hassle. thank you for any suggestions

[zonkkk]

The questions do not refer to your legal employment situation but to the fact that after a contract you seem to be struggling to get another one. The fact that it is a choice or not doesn't really matter.

Clients tend to be put off by gaps on the CVs they receive. If they have a choice they will always go for the ones that have solid back to back contacts rather than a 'part timer'.

[Slx]

thank you, I am only asking about the legal employment situation

when I am dealing with agencies checking 'gaps' they are just fulfilling legal requirement - at that stage I've already received an offer from client (who doesn't seem to care about the gaps). if they do, won't get an interview in the first place.

PS given the ir35 'reform' and impact in last years - i'd rather have gaps than smallest suspicion of 'hidden employee' on long assignments/single client

[northernladuk]

My view is that I am employed continously by my limited company whenever my company deliver services or not. I end up in unnecessary looping of what is called 'employment references' which I would like to avoid by simply provide a single continously employment by my ltd which is eventually my accountant.

Not quite. You aren't employed by your LTD normally. Being a director you an office holder. You'd need a contract of employment and full set of rights that don't all apply to a director.

[zonkkk]

thank you, I am only asking about the legal employment situation

when I am dealing with agencies checking 'gaps' they are just fulfilling legal requirement - at that stage I've already received an offer from client (who doesn't seem to care about the gaps). if they do, won't get an interview in the first place.

I am not aware of any legal requirements for Agencies to check gaps between contracts. They do need to check your references once you have an offer on the table.

I have only ever encountered questions about gaps before being put forward for an interview.

[Lance]

continously employment by my ltd which is eventually my accountant.

what on earth does your accountant have to do with your 'employment'?
Does your accountant actually run your business for you? That should worry you if true.

[northernladuk]

what on earth does your accountant have to do with your 'employment'?
Does your accountant actually run your business for you? That should worry you if true.

I can't fathom why MSC is an issue to contractors and now I see why....

[peterboroughsas]

Not quite. You aren't employed by your LTD normally. Being a director you an office holder. You'd need a contract of employment and full set of rights that don't all apply to a director.

I don't think he is considered merely an office holder if he is being paid a salary by his LTD as stated in the post (even though his status is director)?

[Lance]

I don't think he is considered merely an office holder if he is being paid a salary by his LTD as stated in the post (even though his status is director)?

maybe not.
Person of significant control, owner, shareholder, officer, director..

Still not an employee though.

[northernladuk]

I don't think he is considered merely an office holder if he is being paid a salary by his LTD as stated in the post (even though his status is director)?

Still not an employee. That requires an employment contract and the way a company treats employees is different to that of office holders/directors. For example. A company has to legally pay an employee National Minium Wage. This does not apply to a director so can pay as little as they want which is why the low salary/high divs works so well for us. Don't quote me but also affects rights, redundancy etc to some extent.

But bottom line is, until you have an employment contract you an office holder/director, not an employee.