Experian background check - occupation history

[wanstronian]

I'm sure I'm not the first person to ask this, but I did a quick search and I didn't see an answer...

I'm on-boarding with a new client, and have been asked to do the Experian background check. I'm not sure how to complete the occupation history section.

Do I call myself "Employed" by my own company (meaning I'll be giving myself a reference)?
Do I call myself "Employed" and list the clients I've worked for as "employers?"
Do I call myself "self-employed" and give my accountants' details?

This process doesn't seem very well set up for contractors who've been working for their own limited company.

[Dorkeaux]

I'm sure I'm not the first person to ask this, but I did a quick search and I didn't see an answer...

I'm on-boarding with a new client, and have been asked to do the Experian background check. I'm not sure how to complete the occupation history section.

Do I call myself "Employed" by my own company (meaning I'll be giving myself a reference)?
Do I call myself "Employed" and list the clients I've worked for as "employers?"
Do I call myself "self-employed" and give my accountants' details?

This process doesn't seem very well set up for contractors who've been working for their own limited company.

Well, are you paid a salary by your limited company?
From an Experian point of view (and HMRC, and your bank) then you are _______ by the limited company.

[malvolio]

Well, are you paid a salary by your limited company?
From an Experian point of view (and HMRC, and your bank) then you are _______ by the limited company.

Agreed. But by any other piece of statute in this area you are not an employee. Good, innit!


Not a bad thing though. No need to be bound by minimum wage or maximum hours for instance.

[Dorkeaux]

Sure, but we are talking about Experian here.

Your CV, Linkedin profile and interviews would be pretty boring and uniformative if you simply stated you have worked for MyCo for x years.

But that's what Experian, banks and HMRC (mostly) expect to hear.


Sidebar:
Lately at my vettings for ClientCos, I've simply said my employer has been MyCo for the past 10 years, and left it at that.
The ClientCo has only come back once asking for more details about the ultimate clients.

[wanstronian]

Thanks for all the replies. So I can put my company as my employer, and myself as the referee!?

[Dorkeaux]

Thanks for all the replies. So I can put my company as my employer, and myself as the referee!?

I might put another director or company member as the referee, if that's required.
In my case, I put my accountant who is the company secretary (holds no shares).

[jamesbrown]

I put my accountant who is the company secretary (holds no shares).

That is "brave" for various reasons, not least of which is the MSC legislation!

[Protagoras]

Well, are you paid a salary by your limited company?
From an Experian point of view (and HMRC, and your bank) then you are _______ by the limited company.

+1
If the question asks 'who was your employer?' and at the relevant time a LtdCo of which you were the proprietor was your employer, I can't see that any other answer is appropriate.

[Dorkeaux]

That is "brave" for various reasons, not least of which is the MSC legislation!

Yeah, that's me. Danger Boy.

We should try not to raise red flags to HMRC to be sure.
There is no rule against your accountant also being your company secretary, but in the absence of law who knows how HMRC will choose to interpret it?

You can drive yourself mad guessing where the risk is.
In my defence, my company is almost through MVL, and my accountant and I always maintained provable red lines to ensure they could never be considered a MSC.

For the OP, the point is that your accountant can probably act as your referee if no one from your company can.
They don't have to be part of your company to do so, they just happened to be in my case.

Of course any one of the drones in the myriad of companies inveigled between you and the client might object to, well, anything.
So try it and see.

[jamesbrown]

You can drive yourself mad guessing where the risk is.
In my defence, my company is almost through MVL, and my accountant and I always maintained provable red lines to ensure they could never be considered a MSC.

(MSCP)

There's no need for madness here, it really isn't that hard. Having your accountant as a CoSec has been widely understood as a significant risk for many years. Indeed, it's covered in HMRC's ESM guidance:

https://www.gov.uk/hmrc-internal-man...manual/esm3520

Indicators of services that would constitute being involved in all circumstances:

• .
• Being the company secretary of client companies
• .

You might argue that contractor accountants only came into the frame of ITEPA Ch. 9 recently, but it was several years ago now and you really shouldn't have involved your accountant in this way for other reasons too (cough, Darren Upton). More worryingly, your accountant should've noticed!