My agency is forcing me to use their Umbrella Company!

**northernladuk** · 3 November 2016, 15:59

I can't imagine the agency is going to risk his commission based on an argument about something that has already happened. He might be crying about not getting his kick back but if you quit he'll have nothing.

Generally I'd say you are OK but I don't really know.

**VelcroPower** · 3 November 2016, 16:10

Originally posted by AAC View Post

The UC I decided to sign with offered me the best rate and a £250 welcome bonus.

When you say best "Rate" do you mean highest take home pay? The kind that promises that and a welcome bonus are not usually the kind of Umbrella Companies you want to be using really.

**LondonManc** · 3 November 2016, 16:13

Originally posted by VelcroPower View Post

When you say best "Rate" do you mean highest take home pay? The kind that promises that and a welcome bonus are not usually the kind of Umbrella Companies you want to be using really.

Best rate would hopefully mean lowest fee, rather than being in some scheme. I hope you're wrong for the OP's sake.

**VelcroPower** · 3 November 2016, 17:22

£250 for joining an Umbrella Company seems like a big risk on the UC's part - especially if it is at a low margin and now they don't get the VAT on expenses they used to.

Hopefully it's all legit like you say but that £250 makes me apprehensive.

**Bee** · 3 November 2016, 20:07

Originally posted by AAC View Post

I am in the creative industry and was recently hired as a freelancer. The recruitment agency that hired me originally informed that I could use any Umbrella Company (UC) I wanted. After doing my research and signing with my desired UC, my recruiter informed me that I was actually only allowed to use one of their 4 suggested companies. The UC I decided to sign with offered me the best rate and a £250 welcome bonus.

I have started working at my new job but I am not on a pay role as I am now arguing that I would like to stay with my UC on the grounds that no where in my recruitment contract did it state that I needed to use one of their UC. Do I have grounds to demand I stay with my initial UC?

This doesn’t sound right to me.

**lucyclarityumbrella** · 7 November 2016, 13:53

Unfortunately, we see this a lot! We have contractors sign up who are then forced to move to a selected UC of the agencies choice.

As for the better rate, I am assuming you are referring to the margin the UC are charging? Just a small word of caution, don't get enticed by gimics to get you signed up, if an UC is working hard to ensure you are looked after then they shouldn't need to offer things like this, just reassurance that you will be looked after well and are kept safe from any issues with HMRC. Corny as it sounds, you do get what you pay for in this life

My agency is forcing me to use their Umbrella Company!