contractor working in the UK

[snail22]

I am regestered as a sole trader in the republic of ireland, and have just started on a new contract in the UK, The company I am working for says they can't pay me as a sole trader, only a Limited company, I have been contracting for a year and a half now both in the UK and Ireland without a problem, why would they say this and what can I do about the situation as I don't want to trade as a limited company

 

[ubiquitous]

why would they say this

Presumably because of the existence of very tight Inland Revenue controls on subcontractors in the UK. Search the Inland Revenue site for more.

and what can I do about the situation as I don't want to trade as a limited company

Possibly use an umbrella company?

 

[snail22]

thanks for your reply,

How will using an umberela company in the UK work with my accounts at home? won't my accounts get very messy? at the moment they are very simple.

 

[envelope]

Alot of companies will no longer deal with sole traders as if you dont pay your taxes the company you are working for are liable to pay these costs , which is not the cause if you are a ltd company. As they dont want to get stung a lot are insisting you have a ltd before they hire you.

 

[Rois]

I took a short (3 month) contract in the UK in 2002. Like yourself, I didn't want the hassle of a limited company, so the company employed me as a "PAYE Contractor". When the contract was finished I was able to claim the UK tax back.