Can I not do without umbrella / ltd / paye?

[TykeMerc]

Perhaps to start you off, but longer term you need to be looking at your own limited company.

Take the general advice and stay well clear of the various overseas offerings.

If it sounds too good to be true, it probably is.

Well having your own Ltd isn't a need, but it can be more tax efficient, that tax efficiency can be offset by hassle and IR35 concerns, it's a matter of personal taste.

I agree completely about the overseas schemes, they all represent risk of tax repercussions.

It bears saying at least once a day on here:

If it looks too good to be true then it almost certainly is!!!!!

DON'T think that you can get away with very high takehome %ages as the Taxman will undoutedly molest you in the long term.

[d000hg]

So back on the original topic, which I myself wondered about but never cared enough to ask... it seems the answer is:

1)You can legally work as a sole trader
2)Agencies won't deal with you if you do, and even working direct you may have problems

Or did I misunderstand and there is actual legislation in place?

[bobspud]

For some unknown reason agencies took a dim view of sole traders several years ago. There is no legislation that says they can't trade with them, they just don't.

However you should think about the liabilities involved in saying I want to go and work on a multi million pound project and have all my worldly possessions at risk while I am doing it...

[LisaContractorUmbrella]

Under Section 134 of the Income & Corporation Taxes Act 1988 a sole trader working through an employment agency could be viewed as an employee and, if they do not pay the correct taxes, the employment agency could be forced into an employment arrangement and therefore become liable for the deficit.

HTH