Sole Trader query

[d000hg]

I report to team based in US. This is a US based company, they do have offices here in UK.

Would your contract actually be with a US company or with a UK company owned/operated by the parent company in the US?

[vik845]

IP rights is absolutely something you can have addressed in your contract. In some sub-sectors of software development it's very common for people to have pet projects, or work actively on FOSS projects. I was under the impression UK/EU protection stops companies being able to 'own' you despite what they may put in your contract. This is assuming you;re not writing something which competes with your client or uses your insider knowledge.
Be aware of it but it's not insurmountable.

Sole Trader is a perfectly reasonable way of doing things, I thought generally 'employers' didn't like it as it increases their liabilities? i.e. if they're happy then it's fine. Lots of freelance web-devs in particular work this way.

Have they said WHY they won't work with your 'Entity'?

Thanks, they have not advised why they won't work with my Ltd company. Currently I am working with agency which will stop by end of the month. Client is moving to single vendor instead of multiple agencies. so, they have asked to work directly as an contractor (we’re unable to contract with your entity BUT can contract with you for (6) months as an individual). I report to team based in US. This is a US based company, they do have offices here in UK.

[d000hg]

IP rights is absolutely something you can have addressed in your contract. In some sub-sectors of software development it's very common for people to have pet projects, or work actively on FOSS projects. I was under the impression UK/EU protection stops companies being able to 'own' you despite what they may put in your contract. This is assuming you;re not writing something which competes with your client or uses your insider knowledge.
Be aware of it but it's not insurmountable.

Sole Trader is a perfectly reasonable way of doing things, I thought generally 'employers' didn't like it as it increases their liabilities? i.e. if they're happy then it's fine. Lots of freelance web-devs in particular work this way.

Have they said WHY they won't work with your 'Entity'?

[vetran]

I have been advised - "we’re unable to contract with your entity BUT can contract with you for (6) months as an individual" after that they will see.

Its a FTC, tell them you want the same money as before PAYE tax (they pay employees NI). You will concede Intellectual Property during their time & if you have other customers you will disclose them but no exclusivity.

I used to have 5 customers I had to give them up when I went permy.

[vik845]

If they have any sense it will be a Fixed Term Contract i.e. a Permie but with an end date.

If they try any other way they are opening themselves up to an employment status issue & tax issue.

If they Sole trader you you just need to not pay any tax & HMRC will assume they should have deducted PAYE.

get some advice. Maybe use your IPSE legal question?

You will have issues with the employer owning your IP & expecting exclusivity.

I have been advised - "we’re unable to contract with your entity BUT can contract with you for (6) months as an individual" after that they will see.

[vetran]

If they have any sense it will be a Fixed Term Contract i.e. a Permie but with an end date.

If they try any other way they are opening themselves up to an employment status issue & tax issue.

If they Sole trader you you just need to not pay any tax & HMRC will assume they should have deducted PAYE.

get some advice. Maybe use your IPSE legal question?

You will have issues with the employer owning your IP & expecting exclusivity.

[vik845]

Check first that the end client doesn't want to contract directly with your Ltd.

Response from client - we are interested in contracting with you DIRECTLY not your company… we’re unable to contract with your entity BUT can contract with you as an individual. Not sure if this comes under sole trader or something else and how it works in terms of Taxes ?

[vik845]

I'd be surprised if the agency didn't have something in your contract preventing this. Also, why would you be moving to sole trader?

I've checked with the agency and they don't have an issue me working directly with the client. And the client is mentioning that they are unable to contract with my entity but can contract with me directly as an individual.

[vik845]

sole Trader

I've checked with the agency and they don't have an issue me working directly with the client. And the client is mentioning that they are unable to contract with my entity but can contract with me directly as an individual.

So I'm trying to understand if there any implications and how will It impact my take home salary and taxes?

Thanks

[BigRed]

I'd be surprised if the agency didn't have something in your contract preventing this. Also, why would you be moving to sole trader?

[northernladyuk]

Hi All

Ive been working through my limited company for a client via an agency. As the agency contracts are coming to an end with the client, the client wants to hire me directly as an individual contractor (I assume this will be as a sole trader) on the same daily rate.

Can you guys advise if I need to aware of any legal or tax implications moving from limited company to sole trader? And will my take home roughly be the same or less or higher?

Check first that the end client doesn't want to contract directly with your Ltd.

[northernladuk]

Why do you assume the client wants you as a sole trader?

[vik845]

Hi All

Ive been working through my limited company for a client via an agency. As the agency contracts are coming to an end with the client, the client wants to hire me directly as an individual contractor (I assume this will be as a sole trader) on the same daily rate.

Can you guys advise if I need to aware of any legal or tax implications moving from limited company to sole trader? And will my take home roughly be the same or less or higher?