Being out the country - HELP

[con5041]

Hoping to get first UK based contract for awhile. I didn't take a great deal of notice of the changes as I thought it affected Umbrella companies not LTD companies. Was speaking to a agency this morning and he said that the new law is like "chain law" they have in Holland , ie if the contractor defaults , the agency and client company are liable and therefore they would seek extra assurances from contractors to make sure they were operating a genuine LTD company by insisting on indemity and professional insurance and making sure I use proper company letterhead for invoices. None of which is any real hardship , could somebody help me with the following

1) Can you still use a LTD company and you will be OK if your contracts are outside IR35?

2)Have the IR35 rules haven't changed ?

3)What will agency seek from contractors on commencement of a contract , the old days a copy of cert of incorporation was enough.

4)Was he correct about "chain law"

Help appreciated

[malvolio]

No, he's totally wrong in every regard. Umbrellas are unaffected. LtdCos are unaffected. Managed Service Companies are effectively out of business.

Have a wander through recent posts on this board (ignoring the small war going on about "are accountants really MSCs in disguise", 'cos that's also nonsense) for the fuller picture.

Although why anyone would want to come and work in this New-Labour-mismanaged madhouse is beyond me...

[con5041]

thanks , just got a email from him asking for

Please can you also confirm the following

1)limited company you work for has both public liability and professional indemnity insurances.
2)The limited company you works for conducts a PAYE scheme in line with current UK legislation.

3)The limited company you work for is registered for VAT in the UK
4)Please provide VAT and Limited company registration numbers

5)Please confirm that you are able to provide invoices on proper company headed paper which will need to be submitted in hard copy as well as soft copy

3-5 are no problem but I have no live PAYE scheme as my company hasn't been alive for awhile , even if I did does a agency now require upfront proof that you have such a scheme and it is it going to be the case if you are a ltd company you must have the insurances ?

[malvolio]

You ned the insurances if your contract demands it, not otherwise. If you don't have a contract as yet, you don't need them, so tell them they will be arranged as required. The contract (if any) is between them and your company, how your company pays its people and what your PAYE setup is like is absolutely none of their concern.

Sounds to me like you need a better agency...

[tim123]

No, he's totally wrong in every regard. Umbrellas are unaffected. LtdCos are unaffected. .

He's not entirely wrong. Just because one man Ltd's aren't affected doesn't mean that he doesn't have to check that you actually are operating through one.

<made up name> Ltd could just as easily be an MSC as a <my co>. How is the pimp to know if he doesn't ask you to demonstrate which it is.

tim

[tim123]

thanks , just got a email from him asking for

Please can you also confirm the following

1)limited company you work for has both public liability and professional indemnity insurances.
2)The limited company you works for conducts a PAYE scheme in line with current UK legislation.

3)The limited company you work for is registered for VAT in the UK
4)Please provide VAT and Limited company registration numbers

5)Please confirm that you are able to provide invoices on proper company headed paper which will need to be submitted in hard copy as well as soft copy

3-5 are no problem but I have no live PAYE scheme as my company hasn't been alive for awhile , even if I did does a agency now require upfront proof that you have such a scheme and it is it going to be the case if you are a ltd company you must have the insurances ?

5 is a problem for me. WTF should I pay some stupid price for headed note paper just so that I can prove that I am a bona fide company. What difference does it make? Any fool can go into Prontaprint and buy a ream of note paper headed "Amstrad Ltd", they don't make sure that you really are Alan Sugar before printing if for you.

tim

[malvolio]

He's not entirely wrong. Just because one man Ltd's aren't affected doesn't mean that he doesn't have to check that you actually are operating through one.

<made up name> Ltd could just as easily be an MSC as a <my co>. How is the pimp to know if he doesn't ask you to demonstrate which it is.

tim

He doesn't - if he doesn't bother to check Companies House for a list of directors. It's none of his concern anyway until a contract offer is on the table.

[gingerjedi]

5 is a problem for me. WTF should I pay some stupid price for headed note paper just so that I can prove that I am a bona fide company. What difference does it make? Any fool can go into Prontaprint and buy a ream of note paper headed "Amstrad Ltd", they don't make sure that you really are Alan Sugar before printing if for you.

tim

Why not just set up a 'word' template and use it everytime you print a company letter? No need for special paper.

[tim123]

He doesn't - if he doesn't bother to check Companies House for a list of directors.

I know this, and you know this. It's suprising how many agencies don't.

tim

[tim123]

Why not just set up a 'word' template and use it everytime you print a company letter? No need for special paper.

Surprisingly enough, this is exactly what I do do.

It doesn't seem to me to tick the box for "proper company headed notepaper".

tim