A Different question about Ltd Company vs Umbrella

[internetpseudonym]

I have a question which so far as I can discover, is not covered in the stickies or anywhere else.

All of the discussion about the Ltd Company/Umbrella issue leans towards forming a Ltd Company - but it also all seems to assume no third party (or is it fourth) party intermediary to getting work.

I currently use an Umbrella, and most of my work comes from various recruitment agencies (usualy a few days or weeks at a time). This would still be the case if I formed a Ltd Company. The thing is, many of these agencies seem to pay you as PAYE regardless, and some others won't touch you if you aren't with some sort of Umbrella. So is there really an advantage for me to form a Ltd?

So my question is: Can somebody wiser than me please post some sort of fairly definitive advice about the functions of each option, in the common eventuality of getting your work through recruitment agencies or another third party. I think it could make for a good sticky?

[Bluebird]

Having "many" small jobs points you to being outside IR35 in that you are supplying a number of services to multiple clients at any point in time.

The key here is to get the agencies to admit to this - what I would do is for the next gig, say to the agency "my rate is £x per day, send my Co a purchase order for z days @ £x + VAT". Once you have completed the gig, send the agancy an invoice for the amount and then process it through your co.

How you pay yourself through your co is up to - you can use a combination of salary & dividends if this works for you, also all your expenses can be subtracted before profot & therefore before Corp Tax is applied.

[dmini]

I don't know what agencies you use, most IT varieties accept any limited, some only accept a limited range of umbrellas.
Having done temp office style work in the past - that does fit your PAYE only though, so it does depend on your field.
Talk to them and check, about limited companies. I'm assuming you have a set of agencies who provide you with intermittent work.
As others have mentioned - make sure that if they will accept you as limited, that their contracts reflect that - I had one IT agency send me pre-employment questionnaires, and a whole load of other "employee" rubbish - and got upset when I turned down their contract!