Sorry if this has already been answered. I did try to find some info before posting.
I have been employed by a company in the midlands for a few months. Prior to that i had set up a Ltd Company and this was still running. I asked if my current employer would let me work through my Ltd Company.
The answer was yes but only if i provided proof that i was invoicing other companies whilst i was working for them. As they would have to pay my N.I. and Tax if i wasn’t but surely my own LTD company would pay my N.I. and Tax??
He was probably worried that if you decide not to pay the tax, the revenue would sting him for it as they might think it was his idea. I know my firm got caught out with a sole trader subby, so now everyone must be limited or they won’t touch them
I think he just wants to hold the deductions in his account. All you need to give him is an invoice with your company registration number on, this is checkable with Companies House. You have no obligation to disclose your ‘other’ companies, that’s your business. Likewise how would he take it if you were to ask the same of him?
globby:
I asked if my current employer would let me work through my Ltd Company.
Not legal in any way, shape or form. I doubt very much that you could decide where and when you worked and importantly who you decided was going to do the work that day. I doubt he would be happy if you decided on Monday that you weren’t going to do it and you were going to get someone you know to drive the wagon instead.
It is to do with the Inland Revenues IR35, which if you only do work for 1 company, you are deemed to work for that company and they have to pay your tax and insurance, but if you work for more than 1 company then it is ok to use your limited company. So if you invoice more than 1 company and can show this to the company you are working for, that will be ok with them; if that’s what they insist on.
globby:
My accountant said the IR35 was only to do with people that worked in IT. Would not affect me
It applies to everyone. People in IT were the first to get hammered by HMRC and sent massive tax bills on a large scale. HMRC have already started with lorry drivers with agencies and MSC.