Limited company preferred list

[Cheshire Cat]

You don't understand what a limited company is, do you?

[MikeC1408]

I think he's getting confused by the fact they all have Ltd at the end of the name

[LisaContractorUmbrella]

I am using the terms "umbrella" and "limited company" interchangeably. I don't have a limited company, but do operate through an umbrella where I was retaining approx 80% of my gross earnings. I don't claim any expenses etc...

Yes, there is most likely some risk attached and I am sure it has been discussed to death in these forums. However the issue I have is that my new agency won't pay into this account.

Ideally I would like to stay using an umbrella or similar where I can receive a similar benefit.

Here are some names from the list. There are a lot more, but is any currently using any of the below?

Actionmargin Ltd
Auroria Consultancy Ltd
CG Construction Services Ltd
Crest Plus Exchange Ltd
Gabem Management Ltd
Giant Services Ltd
Hyperlink Services Ltd
J.S.A Services Ltd
NWM Solutions Ltd
Parasol Ltd
Sterling CIS Ltd
Sterling Solutions Umbrella Ltd
The Guild of Construction Workers Ltd

I would guess that you have been operating through a managed service company in which you would have been a director of a limited company that was set up and run by the 'umbrella company' that you have been using. You would have received dividends from that company rather than being paid via PAYE hence the 80% return. This business model is now illegal which is why your agency won't deal with them. Either that or you are using an offshore scheme in which case I would recommend reading the BN66 thread but, again, most agencies will not have anything to do with this type of scheme.

Your only, legal, options are to open your own Limited Company - you would have to have a business bank account and would have be prepared to do the administration for the company yourself, although an appointed accountant could help you with tax issues. If you are outside IR35 you could draw dividends from that company; if not you must draw a salary through PAYE which will include the deduction of both employee's and employer's NI. Alternatively, you could use an umbrella company that would pay you via PAYE. If you do not incur any expenses your net return will be much lower than 80% using any of the providers you have listed above or any other umbrella company.

HTH

[Beefy198]

Once again, agencies running scared of 'debt transfer' rules don't see the fool-hardiness of TELLING you that you HAVE to use 'preferred suppliers', usually two jolly big brollies that are well known for putting through unreceipted expenses and letting you claim blanket amounts.

Always makes me laugh!