To summarise; An existing Ltd co. that makes money and some of that money is drawn out as salary each month. Business is plodding along on autopilot. Offered a 12 month contract for an agreed XXX a day. Unfortunately the big boys offering the contract have just put a blanket ban on all contractors (one man bands operating behind a Ltd co.) - they are thinking either Umbrella company or PAYE. My question is, do I have to terminate my employment with the Ltd co. in order to get a P45 to pass on to this new employer? Ideally would like to stay on the payroll of existing Ltd co. and work for new external company.