Reply to: IT contractor - but going PAYE under a family members company?

[northernladuk]

Some interesting threads on agents insisting on sole directorship that might give the OP some insight in to potential problems.

http://forums.contractoruk.com/busin...rship-ltd.html

http://forums.contractoruk.com/accou...-director.html

http://forums.contractoruk.com/accou...-director.html

[SeanT]

I think you might need to get a job...

[ASB]

In order to find out the prospective terms you will needto find tbe contract first. You could ask any agencies you plan on using for model contracts.

As you should realise needing to be a director is common. A shareholder less common. It is up to both parties to decide the basis on which they wlll do business.

Are you certain that your bankruptcy in ireland will legitimately allow you to hide your income or some portion of it in a uk company until discharge. Seems remarkably odd to me.

Here tbat would get you multiple significant charges (if caught). And they would also be visited upon your sister.

[radish2008]

I should have stated I would be going bankrupt in Ireland as i'm Irish - so I don't think employers in the uk have visibility of the bankruptcy register there anyway (I worked in uk for many years and hope to do so in the future)

Anyway - we are getting slightly off topic (although it does provide context for my original query)

So essentially there are mixed views as to whether an agency would be prepared to sign a contract with a family member as director/owner and me PAYE yes?
I really need some way to find this out before I go bankrupt.

Does anyone have any ideas as to how I could find this out even?

It seems like you're asking for some sort of affirmation from the forum ? It seems to me that you're attempting to create a future that is built on lies and expecting people here to help you get there ?

Why don't you explain everything to the agency they you're looking to work with and see what they say ?

[qwertyuiop725]

I think agents/clients in all sectors would probably err on the side of caution if someone openly declared they were expecting to go bankrupt in the immediate future

I should have stated I would be going bankrupt in Ireland as i'm Irish - so I don't think employers in the uk have visibility of the bankruptcy register there anyway (I worked in uk for many years and hope to do so in the future)

Anyway - we are getting slightly off topic (although it does provide context for my original query)

So essentially there are mixed views as to whether an agency would be prepared to sign a contract with a family member as director/owner and me PAYE yes?
I really need some way to find this out before I go bankrupt.

Does anyone have any ideas as to how I could find this out even?

[SueEllen]

I think agents/clients in all sectors would probably err on the side of caution if someone openly declared they were expecting to go bankrupt in the immediate future

If they don't background check they won't know.

[pr1]

Or you could avoid the issue completely by working in sectors where they don't background check at all.

I think agents/clients in all sectors would probably err on the side of caution if someone openly declared they were expecting to go bankrupt in the immediate future

[SueEllen]

so like OP says, it would appear it's better to stay quiet and let them find out (or not) than to not have a contract at all

half a contract is more £££ than no contract!

Or you could avoid the issue completely by working in sectors where they don't background check at all.

[pr1]

In the case of the defence company I was about half-way in the contract before they started looking into me. Another contractor who started before was let go suddenly mid-contract as he hadn't bothered handing reference information in.

so like OP says, it would appear it's better to stay quiet and let them find out (or not) than to not have a contract at all

half a contract is more £££ than no contract!

[SueEllen]

I wouldn't bother telling them. Realistically they would never find out - and even if they do find out after the event they probably wouldn't care at that stage.

Unfortunately you will find that some companies will do the background checks themselves and may not do them immediately you get on-site.

In the last two years I've had roles with defence and finance companies who both did the background checks themselves.

The finance company did the check before I got on-site while the defence company took their time. In the case of the defence company I was about half-way in the contract before they started looking into me. Another contractor who started before was let go suddenly mid-contract as he hadn't bothered handing reference information in.

[qwertyuiop725]

They will.

And some clients get picky about when you lie to them, strangely enough.

Id take my chances - would be a lot less to lose if caught (which would be highly unlikely unless they decide to do a random check mid contract for some reason) rather than being upfront about the bankruptcy.

[TheFaQQer]

I wouldn't bother telling them. Realistically they would never find out - and even if they do find out after the event they probably wouldn't care at that stage.

They will.

And some clients get picky about when you lie to them, strangely enough.

[qwertyuiop725]

Some contracts actually state if your situation changes e.g. you go bankrupt you have to tell them. I suggest you stay away from the finance, government and defence sectors.

I wouldn't bother telling them. Realistically they would never find out - and even if they do find out after the event they probably wouldn't care at that stage.

[SueEllen]

I would plan on entering bankruptcy immediately after starting a new contract. Hopefully the contract would last 12 months (or a large portion of it) to get me to the other side of bankruptcy.

Some contracts actually state if your situation changes e.g. you go bankrupt you have to tell them. I suggest you stay away from the finance, government and defence sectors.

[qwertyuiop725]

Then your bigger worry will be getting a contract.

Personally I would use an umbrella.

I would plan on entering bankruptcy immediately after starting a new contract. Hopefully the contract would last 12 months (or a large portion of it) to get me to the other side of bankruptcy.