This appears to be an umbrella company. They are well known in the UK dating back to the introduction of the poxy IR35 legislation introduced by Tony Blah's government. One of the attractions has been minimal paperwork involved. This is a perfectly legitimate way to operate and can take the hassle out of running a company out of a contractors hands. You also don't have to set up a company.
What should have rung alarm bells was the fact it was free. Did they advertise how they made their money? Most umbrellas take a fee for the services provided.
BTW Fraud like this can happen to permanent employees. An employer deducts tax but doesn't transfer it to Inland Revenue. The employee is left owing thousands to the taxman.
Biting the hand that feeds IT
