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Temporary work through limited company

 If I take a temporary or interim job through one of the recruitment agencies I have the choice between being an employee (of the agency) or operating through my own limited company. The actual employer will be invoiced by the agency either way. If I go down the limited company route, what are the implications? Do I get caught by IR35? Will I have to set up PAYE/NIC for the company's sole employee (me)? 

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11th Feb 2011 13:03

It depends

... on whether the job you do for the client would be considered as an employment if you were working directly for them (which seems likely as you refer to them as "the actual employer") .  If so, IR35 would apply and you would definitely need a PAYE scheme for your limited company.  Even if not IR35, you might want to have a PAYE scheme in order to pay yourself a salary above the NI LEL if you need to maintain a qualifyingf tax year for your entitlement to state pension.

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11th Feb 2011 16:32

Umbrella

Would you be using your company for future assignments? 

You could always look at using an Umbrella Company, this way you do not have IR35, MSC, or Directorship worries.

 www.fpsgroup.com

 

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11th Feb 2011 18:10

advantages?

Hi there

what would be the advantages of going thru an umbrella co over just being an employee of the agent? Employee either way?? Only thing is umb would want a fee and you to pay ers nic. Wouldnt they?

 

 

 

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