Writing an "Opt-In" letter

**Sockpuppet** · 23 March 2007, 10:37

Your automatically opted in by default.

**Flat Eric** · 23 March 2007, 15:49

Originally posted by Sockpuppet

Your automatically opted in by default.

I know, but the contract I signed opted me out and I want to send them a letter opting back in.

The agency actively discouraged me from removing the opt-out clause so I agreed to the contract, knowing that I can opt-in later...

**Lowery** · 23 March 2007, 19:07

Originally posted by Flat Eric

I know, but the contract I signed opted me out and I want to send them a letter opting back in.

The agency actively discouraged me from removing the opt-out clause so I agreed to the contract, knowing that I can opt-in later...

If your company and director has not opted out then you are automatically opted in...doesn't matter what the contract says.

Once you have started the contract you cannot opt out.

**VectraMan** · 23 March 2007, 20:28

Originally posted by Lowery

If your company and director has not opted out then you are automatically opted in...doesn't matter what the contract says.

Once you have started the contract you cannot opt out.

As I understand it, you can cancel the opt out at any point, so it probably follows that you can also opt out at any point (it's better for the agency so they've no reason to stop you).

I opted out with my first contract when I was with an umbrella. Then a year later I'm working for the same agency again, and they've counted my opt out from the first time round despite the fact I've now got my own Ltd. So that makes me wonder if I really am or not.

**malvolio** · 24 March 2007, 08:37

But you are already opted in, that's the point. If the agency coerced you into accepting an opt-out clause, it doesn't apply, it has to be a voluntary decision by you: after all, what would be the poin of the opt-out if the people you are trying to control are dictating whether or not it applies?

Either way, just to be certain, write a letter to the agency from YourCo containing a phrase along the lines of

We hereby give notice, pursuant to regulation 32 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 ("the Regulations") that both MyCo and MyName now wish the Regulations to apply to any engagements through YourAgency

**realityhack** · 27 March 2007, 10:49

Please tell me if I understand this correctly:

If you opt in, you're more likely to be caught by IR35 and seen as an employee, but you have more rights with the EB, and can go direct with an old client after a gig.

If you opt out, you're more likely to be seen as a business, clearer of IR35, but you have fewer rights with the EB, and can't go direct with an old client for a certain period of time.

I've searched the board but there were many conflicting views. I'm opted out (was asked by the EB at the beginning of my contract) and am thinking of opting in. What are the pros/cons of either?

**malvolio** · 27 March 2007, 11:09

Originally posted by realityhack

Please tell me if I understand this correctly:

If you opt in, you're more likely to be caught by IR35 and seen as an employee, but you have more rights with the EB, and can go direct with an old client after a gig.

If you opt out, you're more likely to be seen as a business, clearer of IR35, but you have fewer rights with the EB, and can't go direct with an old client for a certain period of time.

I've searched the board but there were many conflicting views. I'm opted out (was asked by the EB at the beginning of my contract) and am thinking of opting in. What are the pros/cons of either?

None of the above. Opt-in or out makes no difference to your IR35 status at all. It also makes no difference to the status of your business.

Opting out absolves the EB of some responsibilities and risks - if you are opted in you have to be paid regardless of whether or not the agency has been, and there is a big limit on handcuff clauses, plus a small pile of other trivia. Therefore, opt-out, save the agency some work and use the leverage to get a better contract, or opt in and reduce your own business risk at the expense of more employee-like contract terms, which just might have an effect on an IR35 investigation.

The detailed guidance is on the PCG website if you're a member (and if you aren't, why not!). FWIW I opt out every time, but that's just me...

**realityhack** · 27 March 2007, 11:47

Originally posted by malvolio

The detailed guidance is on the PCG website if you're a member (and if you aren't, why not!).

Only been contracting these last 3 years, been in an umbrella, MSC, now my own Ltd. Before that I was freelance, direct, on fixed term PAYE contracts. Still a relatively new game to me and not earning the big bucks like some on here, yet.
Not sure whether the benefits of joining PCG are worth the money. Already have IR35, PI and PL insurances. Was told the PCG forum isn't up to much.

**Cowboy Bob** · 27 March 2007, 12:05

Originally posted by realityhack

Not sure whether the benefits of joining PCG are worth the money. Already have IR35, PI and PL insurances. Was told the PCG forum isn't up to much.

It's worth it for a newbie, but not really worth it for the seasoned pro. I've let (or am letting - can't remember when it's up for renewal) my membership lapse. Haven't visited their site at all in the last 6 months or so, so have come to the conclusion it's not worth it anymore.

Writing an "Opt-In" letter