Agency forcing to use particular Umbrella or own Ltd Company

[NotAllThere]

... will figure out a way to get the couple of invoices paid.

Easy - go to this site and following the advice.

[pat25]

As I am totally new to contracting, I don't want to start a Ltd company as I am not sure how long I am going to be contracting, instead of using anyother big name umbrella company and deal with one more entity I feel more comfortable to use some one I know, frankly their is not much difference than what I will get if use Parasol Vs the XYZ Ltd company, and no I am not trying to take small salary and siphon money to a off-shore account.

Basically found from agent that they are worried about MSC regulations and agent admited the mistake of not checking everything before I started the contract.

I spoke to couple of accounting companies recommended on this forums and it does not look to hard to go with my own Ltd company. Will decide on Monday based on what agency can do for me if they want to change the contract, otherwise I guess I will be looking for a new contract and will figure out a way to get the couple of invoices paid.

[BrilloPad]

What I dont understand is why the agency are complaining now. Surely they should have checked this when signing the contract.

I use montpelier and there are certain agencies I can't work with. I see it as their loss.

[Turion]

Yes, please explain to us your exact reasons for this arrangement. What is the advantage as opposed to the Ltd co you already own.

Are you are using a ltd as a front to siphon most of your money to off-shore account, with just a small salary paid to you. It happens, and the agency could be done for it. Or maybe they are thinking about MSC regs.

[Alan @ BroomeAffinity]

Legal situation aside, what is the point of working through someone else's company. You will be taxed under PAYE and better off on your own.

[TheFaQQer]

Hello,

I have been regular visitor of the forums but posting first time, I am very new to contracting just started a contract last week. Instead of going through my own Ltd or another umbrella company, I am going through a ltd company of some one from my family, call it XYZ Ltd

All the contracts were signed between me as an employee of XYZ Ltd and the agency, now after submitting the first invoice, agency says that they can't work with XYZ ltd company as I am not a director of the company. Agency says they are required by law to check every Ltd company they work with to make sure that the Ltd company will pay all the Taxs and NI regularly and the assumption is if I am Director of Ltd company than thats enough gurantee for them that Ltd company will pay required taxes and NI payments.

Other option they are giving me is go thourgh any other umbrella company they work with (it's a long list of umbrellas they work with) or go through my own Ltd company or become part director of the XYZ ltd company.

I find it bit strange as I have other family members and friends that work through XYZ Ltd company and no other agency have complained about it

Is this normal? Agency says as they are one of the big one they have to make sure every thing about the Ltd company they deal with is in place.

As people have said, they need to talk to the company that they have a contract with. You signed the contract as an authorized signatory for the company, so the contract is valid between XYZ and agency.

One would assume that because they are a big agency, they would understand this, however more often than not, they are clueless. There is no requirement for you to be a director of the company or an umbrella employee (essentially - you are an umbrella employee, just not an umbrella that they are used to dealing with).

[TheFaQQer]

If you're a member of the PCG give their legal helpline a ring.

And if you're not, why not? It's a no-brainer.

Mal

[pat25]

I'm sure it should as long as the company authorised you to sign the contract. If you're a member of the PCG give their legal helpline a ring.

If you an authorised agent of XYZ Ltd and after your signature the status of authorised signatory is indicated then no problem.

Yes under my signature I did mention my status on the contract

[BA to the Stars]

The contract was actually signed between me as an employee of XYZ ltd and the Agency, contract should still legally hold the grounds even if it was not signed by director of XYZ Ltd right?

If you an authorised agent of XYZ Ltd and after your signature the status of authorised signatory is indicated then no problem.

I am sure that Directors of major PLC's do not have to sign every contract that their company enters into. However, trying to get an agent to understand that

It is probably the case that the agent / agency involved has only ever dealt with umbrella / companies with one director doing the work as the standard model and what you are doing is alien to them and as it falls outside their normal scope must be wrong to their way of thinking.

[Hex]

The contract was actually signed between me as an employee of XYZ ltd and the Agency, contract should still legally hold the grounds even if it was not signed by director of XYZ Ltd right?

I'm sure it should as long as the company authorised you to sign the contract. If you're a member of the PCG give their legal helpline a ring.

[pat25]

The agency should be talking to a director of the company, not you, since you are not authorised to make those kinds of assertions. Plus, if you've started work, they can't now change fundamental matters like this without signed mutual agreement.

The contract was actually signed between me as an employee of XYZ ltd and the Agency, contract should still legally hold the grounds even if it was not signed by director of XYZ Ltd right?

[expat]

Any advice please? I feel the agency is really unprofessional they had 4 weeks before I started the contract to tell me that I have to use umbrella company from preferred supplier list or use my own Ltd company (where I am the director) and they waited till it came to the payment of the first invoice to tell me that they can't pay the Ltd company thats in the contract as I am not the director

When I worked for IBM, nobody refused to pay them for my work just because I was not a director of IBM. The scale may be different but the situation is the same.

More seriously, the agency DO have a contract with XYZ Ltd. Let them discuss it with that company.

Agency says they are required by law to check every Ltd company they work with to make sure that the Ltd company will pay all the Taxs and NI regularly and the assumption is if I am Director of Ltd company than thats enough gurantee for them that Ltd company will pay required taxes and NI payments.

OK, if you were a director of the contracting company then the agency might feel that that was enough of a guarantee. But that is not the case, therefore the agency has to find another way of satisfying themselves. Reneging on a contract already in place is not a suitable way of doing that.

[malvolio]

I am no lawyer, but as I understand things:

The agency should be talking to a director of the company, not you, since you are not authorised to make those kinds of assertions. Plus, if you've started work, they can't now change fundamental matters like this without signed mutual agreement.

They are required to check on tax payment arrangements but only because they will get the bill if you default. It's not a legal requirement of any kind. merely a commercial one. If XYZ can show you are on their payroll, that won't be a problem, since they are assuming the risk of you defaulting.

Baiscally, tell them to talk to the company directly, since it's not your concern. Keep on working and invoicing. Be prepared to sue them for non-payment...

[pat25]

Any advice please? I feel the agency is really unprofessional they had 4 weeks before I started the contract to tell me that I have to use umbrella company from preferred supplier list or use my own Ltd company (where I am the director) and they waited till it came to the payment of the first invoice to tell me that they can't pay the Ltd company thats in the contract as I am not the director

[pat25]

Hello,

I have been regular visitor of the forums but posting first time, I am very new to contracting just started a contract last week. Instead of going through my own Ltd or another umbrella company, I am going through a ltd company of some one from my family, call it XYZ Ltd

All the contracts were signed between me as an employee of XYZ Ltd and the agency, now after submitting the first invoice, agency says that they can't work with XYZ ltd company as I am not a director of the company. Agency says they are required by law to check every Ltd company they work with to make sure that the Ltd company will pay all the Taxs and NI regularly and the assumption is if I am Director of Ltd company than thats enough gurantee for them that Ltd company will pay required taxes and NI payments.

Other option they are giving me is go thourgh any other umbrella company they work with (it's a long list of umbrellas they work with) or go through my own Ltd company or become part director of the XYZ ltd company.

I find it bit strange as I have other family members and friends that work through XYZ Ltd company and no other agency have complained about it

Is this normal? Agency says as they are one of the big one they have to make sure every thing about the Ltd company they deal with is in place.