Umbrella company members have limited options to deal with a rival who is trading under the same name as them, according to an expert.
A reader’s question on Contractor UK explained that another contractor has started using the same name as his consultancy company and has set up a .com version of his website.
Answering the query, Kingston Smith partner Jon Sutcliffe explained that the man cannot object to Companies House or the Company Names Tribunal as he is a limited firm and his rival is operating as a sole trader.
“If the person does not change his trading name, your only remedy appears to be an action for ‘passing off.’ Passing off is when another business appears to profit from the use of your name,” the expert added.
Mr Sutcliffe said the reader will have to prove that there is reputation attached to the services they offer, the rival is misrepresenting themselves to the public and this is damaging the claimant’s reputation if the action is to be successful.
Nick Stevenson, compliance advisor at Freelance World, recently wrote on Contractor UK that the tax advantages of being a limited company mean many prefer it to operating as a sole trader.
