> agencies have been legally barred from employing people as self employed since the 1970s
Do you happen to have a source for this?
The reason I ask is that I've written to HMRC regarding this precise issue, since I haven't been able to find any official statement to that effect.
While there are structural differences between a 'sole trader' (ie. self employed) and a 'limited company', it's up to the contractor to decide which is more suitable for them. I can't see that the client/agency has any say in the matter.
I was a sole trader for many years and am now incorporated. Usually agencies won't touch sole traders as they'd be on the hook for disguised employment whereas if you have your own Ltd it's your problem if HMRC decides IR35 applies to you.
Sole traders won't be getting capital gains, so you won't personally be out anything, but the agency doesn't want to have to worry about having to have all their coders suddenly be able to claim on their employer's liability insurance or to be on the hook for NI.
6.-(1)Except in such cases or classes of case as the Secretary of State may prescribe,a person carrying on an employment agency or an employment business shall not demand or directly or indirectly receive from any person any fee for finding him employment, or for seeking to find him employment.
(2)Any person who contravenes this section shall be guilty of an offence and liable on summary conviction to a fine not exceeding £400.
Do you happen to have a source for this?
The reason I ask is that I've written to HMRC regarding this precise issue, since I haven't been able to find any official statement to that effect.
While there are structural differences between a 'sole trader' (ie. self employed) and a 'limited company', it's up to the contractor to decide which is more suitable for them. I can't see that the client/agency has any say in the matter.