Agencies won't take contractor if not a director

[SimContractor]

Has anyone else experienced this or heard of this before?

I know of instances where some agencies refuse to take the contractor on a role if they are not the director of the Ltd company they represent (i.e. a shareholder)?

Cheers

[speling bee]

Has anyone else experienced this or heard of this before?

I know of instances where some agencies refuse to take the contractor on a role if they are not the director of the Ltd company they represent (i.e. a shareholder)?

Cheers

You can be a director without being a shareholder and vice versa.

[malvolio]

Has anyone else experienced this or heard of this before?

I know of instances where some agencies refuse to take the contractor on a role if they are not the director of the Ltd company they represent (i.e. a shareholder)?

Cheers

A shareholder is not a director.

Then again you are expecting the application of intelligence by the lowest paid box-ticker in the organisation who is only applying the rules handed down by the executive who don't normally understand recruitment, much less its surrounding legislation and how we work.

One day the clients are going to figure out just how hopelessly inept one of their more expensive suppliers really are...

[bluetoaster]

Has anyone else experienced this or heard of this before?

I know of instances where some agencies refuse to take the contractor on a role if they are not the director of the Ltd company they represent (i.e. a shareholder)?

Cheers

Yes I've seen it happen. I didn't understand it though.

[TheFaQQer]

If you aren't a director, ask them if they know of any other agencies that are trying to fill that role who might understand that this is a stupid requirement.

It's kind of like that Rory bloke who was arguing this year that his agency wouldn't work with a contractor who wanted to opt into the agency regulations if they were the sole director of the company

[Andy Hallett]

I am presuming that the agency is using it for a test to see whether you are a genuine PSC or may be disguising yourself with others in an older style MSC.

[Taita]

I am presuming that the agency is using it for a test to see whether you are a genuine PSC or may be disguising yourself with others in an older style MSC.

PSC and MSC .... are this real or imagined entities? Why would they have to care about this, Andy? Bona fide ltd co supplying a worker....end of story for the agency, in my book.

[Andy Hallett]

PSC and MSC .... are this real or imagined entities? Why would they have to care about this, Andy? Bona fide ltd co supplying a worker....end of story for the agency, in my book.

Depends on how many contractors are part of that company. The 2008 legislation sought to outlaw 'Composite Companies' who were small groups of contractors all taking their money out as dividends. Effectively this forced contractors into using either their own 'Personal' company (PSC) or a brolly.

Not one of my companies but a decent summation of why an agency will require the contractor to demonstrate they control their company.

http://www.inspiredrecruitment.com/r_msc.php

[Wanderer]

PSC and MSC .... are this real or imagined entities? Why would they have to care about this, Andy? Bona fide ltd co supplying a worker....end of story for the agency, in my book.

How do they know it's a bonafide LTD co then? Someone contracts through a company they are not a director of and then all sorts of strange dealings go on. The company goes bust and the contractor just shrugs it off saying they weren't even a director and it's got nothing to do with them...

Any why would a contractor NOT be the director of their company? I agree with Andy on this one - if I were running an agency, I'd be inclined to not deal with a freelancer unless they were the director of the company they work working through...

[LisaContractorUmbrella]

PSC and MSC .... are this real or imagined entities? Why would they have to care about this, Andy? Bona fide ltd co supplying a worker....end of story for the agency, in my book.

Agencies have to make sure that contractors are dealing with their taxes properly to avoid debt transfer. The Managed Service Company legislation (MSC - so yes, real) allowed for unpaid taxes to be transferred to a third party http://www.hmrc.gov.uk/employment-st...nce-july07.pdf