Limited Company Declaration

Limited Company Declaration Info & Guidance

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Definitions for the Limited Company Declaration

Consultancy – The Limited Company
Representative – The individual supplied to perform the services
Agency Worker – PAYE/PAYE Umbrella or under the direct control and supervision of the client

The Limited Company Declaration is completed in two parts. This first section refers to the Agency Worker Regulations and the second section refers to the Conduct Regulations.

AGENCY WORKERS REGULATIONS (does not apply to Umbrella companies)
The aim of the Agency Workers Regulations 2010 (AWR) is to provide temporary workers with the same basic working rights and conditions as if they had been recruited directly by an end client, following a period of 12 continuous weeks on assignment in the same temporary role. A temporary worker is defined under the AWR as an “Agency Worker” who is someone who has a contract with their recruitment agency (whether under an employment contract or an agreement to perform work or provide services personally) and who works temporarily for and under the direction and supervision of the client of the recruitment agency, defined as the “Hirer”.

The definition of an Agency Worker excludes those who are in business on their own account where the status of the recruitment agency or Hirer is that of a client or customer of a “profession or business undertaking” (i.e. a genuine business to business relationship).

We ask all limited company contractors (Consultancy) to declare their status for AWR purposes by confirming whether they are in or out of scope of the definition of Agency Worker (AWR Status). It is important that the Consultancy and the individual contractor (Representative) make their own determination as to whether they are outside of the scope of the definition of “Agency Worker” or not bearing in mind the purpose of AWR, their company and business structure and positioning with respect to IR35 Legislation. We recommend that contractors read the BIS Guidance to the AWR for further information (

The Conduct Regulations were introduced to create minimum operating standards within the recruitment industry, which provide protection for both candidates and clients who utilise the services of recruitment agencies. Limited company contractors may elect to opt out of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (except if an assignment involves working with or caring for children under 18, the elderly, the infirm or other vulnerable persons). If the Consultancy and the Representative wish to opt out of the Conduct Regulations, please read this form carefully. You may wish to take independent legal advice as to the meaning and effects of opting out.

The Consultancy and the Representative may change their status with respect to the Conduct Regulations at any time by giving written notice to us, such notice will not take effect until the existing project terminates or expires (and which includes all extensions relating to the same project).

**You may wish to seek independent accountancy and or legal advice before making your declaration**

If you have any queries regarding any documentation sent from Contract Scotland, please call the office on 01786 446651.

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