Bank Account for Limited Co. vs Umbrella Company Option

[sunnykapoor7]

Hi Friends,

I've recently moved to UK (in October) and found a short contract for 3-4 weeks. I have opened up a Limited company to receive payments but as I'm new to UK, I don't have a credit history in UK and because of no credit history (in UK), I'm not able to open a Business Account. Now, I've found a Permanent position and I'll join them in last week of December.

I want to show this contract income as a part of my Gross Pay to be eligible to renew my visa next year. I'm very confused if any Umbrella company would be able to help me (for such short contract) or should I try any other bank to open a Business Account for me.

Please help me with your experiences and suggestions.


Regards,
Sunny Kapoor
sunny.kapoor@gmail.com

[AccountantMatthew]

I think you need to speak with your agent and take it from there.....

I'm guessing that when you signed the contract to carry out work for the client, your company was the contracting party along with the agency. In that case your company engaged in the work for a client of the agent and you are an employee (or officer) of the company that you own. The client pays the agent, your company will get paid by the agent and then your company pays you.

By joining an umbrella company, you become an employee of the umbrella company, they get paid by the agent and then they pay you as an employee.

So there is a fair difference between the two set ups and you won't be able to change things without engaging with your agent and varying whatever contract you have. I'd doubt if it's the first time they'll have come across this scenario so don't worry too much - just start with them.

[sunnykapoor7]

I understand the two modes and the Client is flexible to pay me in any way. Either to my Limited company or through an Umbrella company. My preference is using my Limited company but I have issues with opening a Business Bank account. Umbrella companies use various modes of payments but I want to use these funds as a part of my Tier 1 extension so it has to be a part of my Gross pay as accepted by UKBA and Umbrella company must agree to declare most of my income as a part of my Gross Pay for such a short contract.

Looking forward to your suggestions.

Thanks,
Sunny

[AccountantMatthew]

If you know what the difference is and what you prefer then surely you should just try and get a business account with another bank! - just keep trying until you find one.

As for the alternative, well just get in contact with some umbrella companies. There are plenty of resources on the web to help you find out who to contact.

[sunnykapoor7]

Thanks AccountantMatthew but your answers are very general without much details. I also request others to please help with your experiences and any references like: any banks that can do a Business A/c of a new comer (relaxed eligibility criteria) or any Umbrella companies that can give competitive rates even for short contracts without any liability or long term commitment. I'm new to this country and just trying to make the right option and your suggestions will really help!

Thanks,
Sunny

[AccountantMatthew]

Sorry for not being good enough for you - was just trying to help!