Contract through a recruitment agency

[RFDAndy]

Hi folks,

for the last 4 years or so, I have been contracting direct to clients, without using any recruitment agencies, and invoicing clients direct. it's been going great. However, I have now been offered a new contract, through a recruitment agency. I'm keen to take it, as the project should be really interesting. However, I'm a little unfamiliar with the whole process when an agency is involved.

I was wondering if anyone can recommend any resources online that would perhaps explain the process a little, along with some of the common pitfalls to avoid.

For example, would my contract be with the agency, or the end client? I've been told that I will need to submit invoices to to the agency, and they would be paying them, rather than the end client. (who would be invoiced by the agency, I assume). Does this have any implications in terms of IR35, or taxation?

I've got an appointment with my accountant next week to discuss some of it, but I'm keen to try and learn a bit about it before I chat to him.

Any advice/links to resources would be much appreciated thanks!
Andy

[psychocandy]

Hi folks,

for the last 4 years or so, I have been contracting direct to clients, without using any recruitment agencies, and invoicing clients direct. it's been going great. However, I have now been offered a new contract, through a recruitment agency. I'm keen to take it, as the project should be really interesting. However, I'm a little unfamiliar with the whole process when an agency is involved.

I was wondering if anyone can recommend any resources online that would perhaps explain the process a little, along with some of the common pitfalls to avoid.

For example, would my contract be with the agency, or the end client? I've been told that I will need to submit invoices to to the agency, and they would be paying them, rather than the end client. (who would be invoiced by the agency, I assume). Does this have any implications in terms of IR35, or taxation?

I've got an appointment with my accountant next week to discuss some of it, but I'm keen to try and learn a bit about it before I chat to him.

Any advice/links to resources would be much appreciated thanks!
Andy

Yep pretty much the norm for most of us.
Contract is with agency and they pay you. Agency then bill client (for more) and they pay agency.

One piece of advice to always remember. A LOT of agencies are lying, cheating, scumbags - don't believe a word of what they say.

[RFDAndy]

Ah right, that's good to know. The agency are being a bit odd, as they have requested scans of my passport, birth certificate, NI number proof, copies of my companies certificate of incorporation, VAT certificate, TAX reference number, and copies of the indemnity/liability insurance certs too... It seems like quite a lot of stuff they are after!

Cheers
Andy

[PurpleGorilla]

Ah right, that's good to know. The agency are being a bit odd, as they have requested scans of my passport, birth certificate, NI number proof, copies of my companies certificate of incorporation, VAT certificate, TAX reference number, and copies of the indemnity/liability insurance certs too... It seems like quite a lot of stuff they are after!

Cheers
Andy

That's all fairly standard stuff, once you have a scan of everything it is easy to send this out.

[RFDAndy]

Good stuff. things are so much easier when contracting direct to a client, and not involving agencies!

Does anyone know exactly why they require my tax reference number though? I can understand wanting all the other stuff, but not really the UTR number...

Andy

[Lola C]

That's all fairly standard stuff, once you have a scan of everything it is easy to send this out.

Birth certificate is NOT some "standard stuff".
I have never been asked for it in my life, not even when I was a permie. And I am a foreigner!

[northernladuk]

Birth certificate is NOT some "standard stuff".
I have never been asked for it in my life, not even when I was a permie. And I am a foreigner!

Correct. I've never been asked for a birth cert either. What will have happened is the agency have copied the recommended documents to comply with the regulations without fully understanding them. In some cases it maybe needed or be an alternative to another document but not as standard. They've not thought it through. Am sure suggesting you won't provide this will have them scurrying off to confirm that is correct.

What Psychocandy forgot to mention is that agents aren't the cleverest lot either.

[SueEllen]

Good stuff. things are so much easier when contracting direct to a client, and not involving agencies!

Does anyone know exactly why they require my tax reference number though? I can understand wanting all the other stuff, but not really the UTR number...

Andy

They need your NI number not our UTR number. They need it due to reporting requirements HMRC imposed on them.

In regards to the contract make sure you get someone to review it preferably like Bauer and Cottrell or a contract lawyer.

99% of agencies put in clauses that are to your detriment e.g. they won't pay you until they get paid so they don't pay the final invoice, 6 week payment terms so if they have cash flow issues you are out of pocket. They can be challenged on this to remove a lot of them but you will need some back up. Yes it does cost some money but if things go wrong it will be your saving grace.

Oh and the agency will say no-one ever changed our contract - this is not true. 99% of them will modify the contract if they know your reviewer is someone reputable.

[billybiro]

One piece of advice to always remember. All agencies are lying, cheating, scumbags - don't believe a word of what they say.

FTFY.

[MrMarkyMark]

FTFY.

Mine, actually, isn't though