Old threat on it here.
Sounds like it's the MSC rules the agencies are afraid of, rightly or wrongly. Their rules however misconstrued or not.
If you are actively using the Ltd then there would be extra burden of dealing with future dividends anyway. If not active, temporarily resign/transfer to daughter until she finishes?
If her contract is in public sector/IR35 then Ltd not much better than umbrella anyway, probably.
-
Forced to use an Umbrella
My daughter has been offered a contract through Reed Recruitment, working for up to a year to help with PPI claims. Reed said she would need to sign up with one of their preferred umbrellas, or she could go through a limited company (although they were not keen on this for some reason). After talking through her options I suggested she accept the contract under my limited company, as this would be the most cost effective (I wouldn't be charging her exorbitant "admin" charges). She sent Reed all the details, proof of insurance, etc. and everything seemed fine.
Today, three days before the contract starts, and one month after she sent Reed all the paperwork, Reed rang to say she couldn't use my limited company as she has to be the only employee in the company. They told her she would need to ring back this afternoon with the details of either a limited company with her as the sole shareholder, or to register with one of their preferred umbrellas.
It seems to me that this is just a way to force her down a route where they benefit from a kick-back from an umbrella? What are her options?
Leave a comment: