Reply to: TekSystems (Allegis Group] - Beware!

[LondonManc]

I notice this clause in the Tek contracts

The Company will ensure that the Consultant is a director and controlling shareholder of the Company
and will continue to be both throughout the term of this Agreement;

Key words, right there.

If you've only got 34% of the shareholding, your co could have you removed from site and your signature on a document does not carry sufficient weight.

That's with the obvious tax evasion implications that were previously mentioned....

[m0n1k3r]

I'm very pleased for you. I was talking about UK-based, British contractors operating solely within the UK. I didn't want your life story.

It is not my life story. What makes you think it is?

[Cirrus]

I notice this clause in the Tek contracts

The Company will ensure that the Consultant is a director and controlling shareholder of the Company
and will continue to be both throughout the term of this Agreement;

[stek]

Then I'd think his tax situation would be the least of his problems

This must be on Immigration Boards somewhere.....

[northernladuk]

What if the OP marries his / her parents?

Then I'd think his tax situation would be the least of his problems

[Old Greg]

Because you are income shifting. Google "S660 Arctic Systems".

What if the OP marries his / her parents?

[Lance]

My parents have 33% each, and me 34%.

Can anyone tell me why they're objecting?

Because you are income shifting. Google "S660 Arctic Systems".

[northernladuk]

I've only just verbally accepted a contract via TekSystems and have filled in one of these forms. The agent has told me that the Compliance team are saying that I can't keep the current shareholding split! My parents have 33% each, and me 34%.

Oh dear or dear. Do we assume there is some really strange situation that warrants this here or are you in a spot of bother??

[SueEllen]

I've only just verbally accepted a contract via TekSystems and have filled in one of these forms. The agent has told me that the Compliance team are saying that I can't keep the current shareholding split! My parents have 33% each, and me 34%.

Can anyone tell me why they're objecting?

I've asked TekSystems to respond with a written explanation, and am waiting for their reply.

I suggest you talk to a lawyer and get them to interact with their compliance team.

Tek Systems have interpreted a law in a particular way. You need to explain to them your company set up, while different, complies with the law. However unless you are a lawyer or accpuntant yourself they will not believe you.

[siddit]

I've only just verbally accepted a contract via TekSystems and have filled in one of these forms. The agent has told me that the Compliance team are saying that I can't keep the current shareholding split! My parents have 33% each, and me 34%.

Can anyone tell me why they're objecting?

I've asked TekSystems to respond with a written explanation, and am waiting for their reply.

[LondonManc]

Even so, I could be spending most of my time in Germany and for that reason have a German GmbH while occasionally taking on a contract in good 'ole UK.

I'm very pleased for you. I was talking about UK-based, British contractors operating solely within the UK. I didn't want your life story.

[javadude]

I'm with TekSystems. Compliance process was a pain. I did answer their stupid questions but gave a vague "when I feel like it" one to the dividend question and they were ok with that. I've had other issues too although to be fair the client is the worst I've dealt with so I'm not sure how much blame to apportion to the agent. I'm just trying to get some stuff resolved so might post more later.

[AndrewK]

Just write anything. They don't check. Play their game - provide information they expect.

[m0n1k3r]

If it's your own LTD then you aren't a competing agency/consultancy.

A consultancy would simply view themselves as a supplier to the agency just like one-man contractors (mostly) do. Smaller consultancies often operate in networks, using each others' resources when and as needed. Agencies could well also be part of that supply chain, if only they ever wanted to, but as their business model is purely transactional, one-off, quick commission-based, they are very fearful of anything that doesn't match their narrow world view exactly.

[Lance]

There is absolutely nothing in law that prohibits a German contractor from taking on a contract in the UK using his/her German GmbH, having a German bank account.

Correct. I'm not sure how many agencies would sign a contract with a foreign company though. I suspect they'd push someone doing that down the umbrella route.