Urgent advice needed: Joined a company and a surprise

[netacct]

Hi All,

I had 3 offers in same week, one very big company, one 20 staffs and one very small ( 2 directors and just 2 other staff including me).

I chose to join this smallest one (please don't want to put all those lengthy reasons)

I joined them on Thu 01 May 2008.

On very first day, they suggested me that I should form a Ltd Company and bill them. That will save them the NI contribution. However, I have joined them as Permanent and not as a contractor. This Ltd thing they never ever mentioned in any form. So I am just bit disappointed when they suggested me this and I really cant understand how can they suggest (indirectly it is bit intimidating as we are just 4 and I have sit with them) that.I have already started approaching the BIG company and asking if their offer is still open to me or not? have not got any final YES/NO yet...might get it on Tue.

What is your opinion and how would you handle this situation.

Thanks in advance.

[ashishashah]

well..join the other firm...if u dont like working in this co. then i doubt u wii enjoy your job..

next time,make sure that u read the contract and if it goes against contract ,raise it..

[netacct]

As I said, it was never ever mentioned in any form.

I don;t want the hassles of Ltd company...and that is why I don't want to work as a contractor (I could use umbrella company though)

[nshar1]

As I said, it was never ever mentioned in any form.

I don;t want the hassles of Ltd company...and that is why I don't want to work as a contractor (I could use umbrella company though)

Netact,
The problem may be even deeper:
You are billing them and kinda working as contractor/consultant to them. In effect you are working as a consultant but drawing the salary of a regular employee. The jobs of consultants are not that secure.

If you form your own ltd company and bill them, you will have to indulge in your own accounting which may cost you as much as GBP 1500 p.a. as accountant's fee. Your company will have to pay your salary to you and on this salary again the employers NI has to be paid by your company.
Even if you use a umbrella company the onus of paying the employers NI lies on you.
Also this small company needs to pay VAT to HMRS along with the billing which means additional expenses for them(or you).

2)Positive: As the owner of a ltd company, you have so many options of saving taxes. Virtually you can avoid more than half the tax and pocket(legally) a portion(4%) of the VAT. Setting up a ltd company has hardly any hassles - Its a very very easy process.


If the reason they have given to you for this surprise is "NI saving" then they are shifting the burden of paying the employers NI on you. But you end up losing 17.5% of billing amount in VAT as well.


My advice is simply walk out of this company as soon as possible.They cannot be trusted.They seem short of money and full of tricks.Their ethics are under question. They cannot provide you any stability. They may have more surprises up their sleeve. Don't even ask for the salary for the 2 or 3 days you have worked with them lest you should have to tell your next employer that you have worked for 2 or 3 days for this company.

If you can get three job offers in a week then you can get more and hopefully the big company may be willing to consider extending the duration of their offer.

All the best !!

[netacct]

nshar1,

Thanks for your reply. I spoke to the agency through whom I got the offer for the Big company on Thu. He said, its 99.99% positive.
But because its very big company they are taking time to send me the confirmation via mail. I think, I will know by tue/wed.

But I think, its better to remain unemployed for few days/weeks/months but join some stable and proper company with no surprises and you can rely on them.