Do I have the option to be 'Self Employed or use an Umbrella Company?

[geebo81]

Hi Guys,

A company have offered myself a chance to work with them under the condition I am self employed and won't give me the option to use an umbrella company. Are they right to do this or do they have to give me the option of Self Employed / Umbrella.

Regards, Geebo81.

[Nixon Williams]

The Income Tax (Earnings and Pensions) Act 2003 Section 44 effectively prevents individuals from trading as sole trader where an agency is involved, as it obliges the agency to treat the individual as if they were an employee, and so are required to deduct PAYE and NIC from any payments due.

Operating as 'self-employed' direct with the client can also be an issue so most companies that are 'in the know' will not engage a contractor who is self employed and not using a limited company.

It maybe that the company does not wish to get involved with the AWR legislation, hence not wishing to use umbrella companies.

AWR is unlikely to apply if you operate via a limited company, so perhaps you could check if that is an option?

Alan

[northernladuk]

And what about the LTD option? Did the specifically say this is not allowed or have they confused self employed and LTD by lumping them together?

[Nixon Williams]

And what about the LTD option? Did the specifically say this is not allowed or have they confused self employed and LTD by lumping them together?

I would guess that they have confused the two - it is a common assumption that many new contractors have.

[Sausage Surprise]

There are also many rules and regs around what jobs count as "self employed". I doubt the employer/OP means self employed (unless it's the building trade).

I used to be a National Insurance Inspector

[kingcook]

Hi Guys,

A company have offered myself a chance to work with them under the condition I am self employed and won't give me the option to use an umbrella company. Are they right to do this or do they have to give me the option of Self Employed / Umbrella.

Regards, Geebo81.

I'm guessing that the client think self employed == working via your own limited company. Best to double check with them.

FWIW ltd co is usually better than umbrella anyway. (queue flaming wars)

[SueEllen]

I used to be a National Insurance Inspector

You kept that quiet.

[tarbera]

download the PCG guild engaging_freelancers_contractors_and_consultants

You kept that quiet.

and send it to the client

https://www.pcg.org.uk/cms/documents...onsultants.pdf

[Sausage Surprise]

You kept that quiet.

It was a very long time ago in a far flung DHSS outpost in west london. Lots of self employed shopkeepers and big hotels to deal with