Reply to: Ltd companies stopped ?

[Mephisto]

Started a gig once with a few other guys. Myself and one other were through Agency A and the other 7 were through Agency B.

Agency A were fine, had contracts ready before start date (just!) and let me use my LTD in the normal fashion. Agency B INSISTED that all 7 of them had to use the Umbrella company that they just happened to own or no contracts would be issued. They'd all started before contracts were issued (usual last second rush job to backfill), which probably never wise…

In the end it took the threat of all 7 to walk out and leave ClientCo in the lurch for Agency B to eventually relent. When I told (my) Agency A about it all they chortled and said that company and its offshoots had a reputation for doing exactly that!

Makes me wonder how many people have been stiffed into going umbrella against their will and losing out on money

[TheCyclingProgrammer]

very strange.
umbrellas are usually Ltds
I have a feeling that they try to convert you to work via their company

What the agent obviously means is that they don't want contractors to work through their own Ltd company (i.e. a "PSC"), not *any* Ltd.

[northernladuk]

very strange.
umbrellas are usually Ltds
I have a feeling that they try to convert you to work via their company

Eh?!?

[pappel]

Hi folks!

I have finished my last contract at the end of march'14 and have just started digging for a new one.

Yesterday received an email from my last recruitment agent saying:

The new government legislation has stopped applicants working as limited companies but we do have an umbrella company that might be of interest to you.

As i have been working through my ltd company for years, it is a bit shocking to find out.

Is this true? Any links? Topics on this forum?
I am sorry if this is common question, have just registered to this forum.

Many thanks!

very strange.
umbrellas are usually Ltds
I have a feeling that they try to convert you to work via their company

[padaka]

Looks like a big nonsense here.
So finally, I got a call back from the umbrella c-ny mentioned in the first post and they didn't confirm any of those legislation revelations provided by recruitment agency to myself.

Thank you guys for your comments !!!

[northernladuk]

It makes them 60 or 70k a year, which doesn't sound like a huge amount - but it's a lot of extra revenue for not doing any work.

Sounds a lot like contracting to me.

[SpontaneousOrder]

They're probably just trying to make some cash by telling you porkies.
E.g. Hyphen @ BAML now try to get their contractors to use Giant. It makes them 60 or 70k a year, which doesn't sound like a huge amount - but it's a lot of extra revenue for not doing any work.

[mudskipper]

"They were trying to stop people just calling themselves limited companies when they were just trying to get out of paying tax etc. All of our temporary staff including yourself were all legitimately working as limited companies but some applicants and agencies were not as correct in their way of working as you and xxxxxxxxx (agency name) hence the legislation was brought in."

I am now trying to contact their source, to get more precise info what the mentioned legislation is

They're muppets.

[padaka]

"They were trying to stop people just calling themselves limited companies when they were just trying to get out of paying tax etc. All of our temporary staff including yourself were all legitimately working as limited companies but some applicants and agencies were not as correct in their way of working as you and xxxxxxxxx (agency name) hence the legislation was brought in."

I am now trying to contact their source, to get more precise info what the mentioned legislation is

[JonNorris@Crunch]

We've had a few panicked emails from clients who've been told similar things by agencies. Upon further inspection the agencies did seem to have rather cosy relationships with a few big umbrellas - I think it's safe to call shenanigans on the whole thing.

[kal]

This is so banal that the agency does need to be named and shamed IMO... they shouldn't be in this business if that's their response to recent events.

[moggy]

Hi folks!

I have finished my last contract at the end of march'14 and have just started digging for a new one.

Yesterday received an email from my last recruitment agent saying:

The new government legislation has stopped applicants working as limited companies but we do have an umbrella company that might be of interest to you.

As i have been working through my ltd company for years, it is a bit shocking to find out.

Is this true? Any links? Topics on this forum?
I am sorry if this is common question, have just registered to this forum.

Many thanks!

Why does my old cynical mind immediately think the agency own an umbrella company..

[Contreras]

The new government legislation has stopped applicants working as limited companies but we do have an umbrella company that might be of interest to you.

What does that mean, "stopped", exactly?

"Some of our contractors decided against forming their own Ltd Co's. There's also a nice kick back for me if you sign up to our umbrella partner."

[RasputinDude]

Are these guys members of the REC? If so, I would suggest contacting them and asking WTF the agency is playing at.

[Martin at NixonWilliams]

Do you think they've misunderstood the onshore employment intermediaries: false self-employment?

Yes, and they wouldn't be the first, although this is by far the most irrational reaction I have heard of!