Status of your candidates
Clearly, you do not want your candidates to be seen by HMRC as being on your or your client’s payroll. It is essential for your protection, and that of your clients, that anyone working through you does so via a limited company. This can either be the individual’s own limited company or a PAYE umbrella but the latter has grave implications for you and your candidates (see Trading formats).
The last thing that you would want to happen is to have HMRC knocking on your door or, more importantly, the door of your client demanding extra tax. There can be no quicker way of losing clients!