Limited Company contractors
Please select one of the options below for further information and guidance on how to make contracting, through your own Limited Company or an Umbrella Ltd Co, as simple as possible:
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To set your company up on our accounts system and get you started we need you to supply us with the following:
Signed Contract Schedule for the Supply of Services
We will send you a standard Agreement for the Supply of Services along with a Contract Schedule that is specific to your particular assignment. This needs to be checked, counter-signed by a Director of your Ltd Co. and returned to us. If your contract is subsequently extended you will receive only a Schedule which you should handle in the same way.
Proof of Identity and Right to Work in the UK
To comply with regulations we need to retain proof of identity of all our contractors and ensure that they are entitled to work in the UK. You can find a list of the documents which are acceptable as proof in the downloads section.
Certificate of Incorporation and VAT Registration Certificate
We must have seen a copy of your Certificate of Incorporation and (if applicable) a copy of your VAT Registration before we can set up your Payment Account. You can either send photocopies in the post to us with your Agreement, fax them to us on 0870 730 1461 or scan and email them to your Account Manager.
Copies of Qualifications
We will ask to see proof of your relevant academic, vocational or professional qualifications. If relevant this may also include any relevant licenses or certifications required for your assignment.
References
We may also need to take up references from previous employers, since some of our Clients insist on this as part of our agreement with them.
Bank/Building Society Details
We will ask you to confirm your bank or building society information on a starter form (please see the downloads section) to ensure you are set up to be paid correctly.
Invoicing
On receipt of an authorised timesheet, Allan|Carter pays monthly according to the payment schedule, which you may find in the download documents section.
New Limited Company contractors can also click find a sample invoice within the download documents section.
Timesheets
Our Accounts Dept needs to receive the original (top copy) of your timesheet, but will accept a faxed copy for payment as long as we can validate the hours/days worked directly with the client and the original must be received in the post before the following week is claimed / paid. We will also accept a completed print out of an electronic version of our Timesheet, which can be downloaded. Please note, our Account Dept must receive the timesheet with the Client’s original signature, not a photocopy.
Please note that for payment purposes our weekend date is each Sunday.
Claiming Expenses
Your Agreement will contain information on whether expenses incurred during the assignment will be reimbursed. To claim expenses you should complete your Client’s Expenses Claim Form, which should then be authorised by your line manager and submitted to our Accounts Dept for payment, along with the original receipts and associated invoice.
Click here to go download documents.
The Conduct of Employment Agencies and Employment Business Regulations 2003 affects the supply of all temporary and contract staff, although the main aim of the legislation was clearly directed towards protecting the lower paid worker rather than the professional limited liability company contractor.
Since it was introduced in 2004 the DTI has agreed that the Limited Company contractor can choose to ‘Opt-Out’ of the regulations (except if the assignment involves working with children, the old or the infirm), so this becomes a choice you need to make. For further information and FAQs on opting out click here.
If you have decided that you do want to opt-out of the Regulations, then click here to download the Opt Out Agreement. This should be signed in your capacity as a Director of your Limited Company (Supplier) and also in your capacity as the Consultant (Worker) who will be providing services. This Agreement should then be returned to your Account Manager.
The Regulations can be seen at www.legislation.hmso.gov.uk/si/si2003/20033319.htm
If you are providing your services through an Umbrella Company, all correspondence, agreements and contracts will be with that company, for which we will deal with them directly. However, we will of course keep you advised of the status of such actions and we will ask you to counter-sign the Contract Schedule as the ‘Authorised Personnel’.
Otherwise the operation is the same as for Limited Companies, but you will of course have to communicate your hours/days worked, expenses etc to your Umbrella Company, so they can raise the correct invoice to our Accounts Dept. As with Limited Companies we pay weekly, directly in to your Umbrella’s bank account.
Your Umbrella Company will be able to offer you information and advice on the Agency Regulations and what it means for you to Opt-Out of them. More information is available here and the Opt-Out Form (which needs to be signed by both you and the Umbrella Company) is available here.
What is an “Opt-Out Notice”?
Under Regulation 32(9) of the Conduct of Employment Agencies and Employment Businesses Regulations (the “Conduct Regulations”), if a Limited Company Contractor (LCC) and it’s Consultant both agree that the Conduct Regulations should not apply and give notice of that agreement to Allan|Carter , provided such notice is given before introduction*, the Conduct Regulations do not apply. This notice is commonly known as an “Opt-Out Notice”.
If an LCC gives Allan|Carter an Opt-Out out notice, this reduces the level of administrative bureaucracy for Allan|Carter and gives Allan|Carter greater scope to charge temp-to-perm and temp-to-temp fees to the client.
* It should be noted that, between the time of opting-out and the date of commencement of supply of the services, LCC’s can opt back in (see FAQs below).
Why does Allan|Carter recommend that LCCs opt-out of the application of the Conduct Regulations?
It is the choice of the LCC whether or not to opt-out and we recomend you seek your own advice on whether or not to opt-out. However, Allan|Carter recommends that LCCs opt out for the following reasons
Allan|Carter complies with best practice and are Members of the Recruitment & Employment Confederation (a voluntary corporate membership which ensures we work to an additional Code of Conduct, over and above that required by law), which already gives sufficient protection to limited company contractors and consultants.
Allan|Carter believes that the Conduct Regulations are designed to protect workers at the lower end of the market (for example, low paid workers in the hotel and catering industries) to ensure that they are paid a living wage, are not exploited and are told in clear terms what services the staffing company will provide them with.
Limited Company Contractors and Consultants are at the top end of the market, are highly paid and Allan|Carter always makes them aware of the terms and conditions between them and Allan|Carter and finds them assignments with reputable clients.
If LCCs do not opt out of the Conduct Regulations, this may compromise their tax status under IR35, ie it may increase the chances of an assignment falling within IR35. This is for the following reasons:
- the Conduct Regulations provide quasi-employment protection to contractors
- the Conduct Regulations state that the services provided by Allan|Carter are to find assignments where the contractor acts for and “under the control” of the client. The concept of “control” is an employment indicator. When assessing whether or not an assignment falls within IR35, the Inland Revenue looks for employment indicators.
- Allan|Carter is able to offer LCCs more assignments because some clients require opted-out contractors only, especially where clients require reassurance about workers not, whilst providing the services, undertaking any other role involving a conflict of interest (such a restriction is unlawful unless the contractor opts out).
Q. Do I have to opt-out for Allan|Carter to find me assignments?
A. No, it is your choice.
Q. I’ve heard that if I don’t opt-out Allan|Carter cannot impose restrictions on me going temp-to-perm or temp-to-temp, surely that’s a very good reason for me not to opt-out?
A. True, Allan|Carter cannot restrict you going temp-to-perm or temp-to-temp if you do not opt out of the Conduct Regulations. However, most clients require Allan|Carter to restrict contractors from taking up assignments, which may cause a conflict of interest with the assignment for that particular client. This means that Allan|Carter would not be able to offer you assignments with those clients unless you have opted out, reducing the number of assignments open to you. In addition, if you opt out, Allan|Carter only restricts you for the term of the assignment and for 3 months after expiry or termination of the assignment. After that you are free to provide services without restriction.
Q. Can I opt back in if I change my mind?
A. Yes, but not in relation to the assignment you are working on, only for the next assignment if it is a different “position”. You must opt out before supply commences. If you have opted out, but have not commenced supply of services, you can opt back in again, but Allan|Carter would have to give you a different contract, and you may not be able to take up the assignment if it is an “opt-out only” assignment.
Q. What’s in it for Allan|Carter if I opt-out?
A. It reduces Allan|Carter’s administrative burden and record keeping requirements and means that Allan|Carter has greater scope to charge clients temp-to-perm and temp-to temp fees and hence recover the loss to the business. From your point of view, you will always receive excellent service from Allan|Carter whether or not you choose to opt-out.
Q. Can I agree to opt out by email?
A. Yes. Remember that agreement to opt out must be given by the limited company contractor and the consultant.