I have been approached by a nurse who was advised by her agency that due to a change in law they would no longer be able to give her any work on a self employed basis unless she operated through a limited company. I advised her that operating a limited company is not child's play and there are strict rules to follow, if she cant follow those rules she should ask the agency to employ her directly. The agency flatly refused so the nurse set up her limited company.
12 months on she has come to see me. She was in tears saying she had a tough time and not followed my advice . She has been using the limited company bank account like a personal bank account. Money paid by the agency has been used to pay personal bills and irregular cash withdrawls taken from the bank (£30k plus).
I am not sure what to do, none of the payments are regular so cant put down as a wage (no PAYE scheme, and no RTI either), difficult to put as dividends either as irregular amounts and no prior dividend elections either.
Has anyone else come across anything like this, what would you have done?