Changing an agent when there is no contract in place

**NotAllThere** · 15 April 2021, 18:17

Tell him (and mean it)m that you'll walk if he doesn't give you what you want. If he fails, find another job. That's your only viable route.

**Joes** · 15 April 2021, 18:20

Well... I want to walk away. It's no longer about the day rate, I genuinely want to go via another agent and I have a guaranteed job in the same position. So I thought since I don't have a contract I can leave him.

cheers

**Lance** · 15 April 2021, 18:23

Originally posted by Joes View Post

I have been working for a little over a year for a company through my agent. I am now in the process of negotiating my new day rate while being moved inside IR35. The problem is that my agent is a pain and wants me to accept the same day ray while I know his commission is 40%. The thing is I've never had a contract with him, it was all a bit rushed so there is no signature on any agreement.

The question is can I change my agent without the company or me being sued or getting into troubles?

Thanks for your help
Joes

What do you mean you've never had a contract with him?
Who do you have a contract with? A different agency, or direct?

And how does he get 40%? If it's from the client then it's none of your business anyway.

**hobnob** · 15 April 2021, 18:35

Originally posted by Joes View Post

I have been working for a little over a year for a company through my agent. I am now in the process of negotiating my new day rate while being moved inside IR35.

Leaving aside your main question, "moving inside" is dangerous: the implication is that your role was actually inside IR35 all along, and therefore that you miscategorised it (when you were responsible for the determination), so you might find HMRC coming after you for back taxes.

Given your other concerns about the agent, this seems like a good time to jump ship. Find a new contract (different client), either inside or outside IR35, and you don't have to worry about getting into trouble.

**Joes** · 15 April 2021, 19:51

Originally posted by Lance View Post

What do you mean you've never had a contract with him?
Who do you have a contract with? A different agency, or direct?

And how does he get 40%? If it's from the client then it's none of your business anyway.

I know that it sounds weird but I've never signed a contract with him or the company. No paperwork. I believe he must have one with the company but I am not tight with anyone by a contract.

**Joes** · 15 April 2021, 19:57

Originally posted by hobnob View Post

Leaving aside your main question, "moving inside" is dangerous: the implication is that your role was actually inside IR35 all along, and therefore that you miscategorised it (when you were responsible for the determination), so you might find HMRC coming after you for back taxes.

Given your other concerns about the agent, this seems like a good time to jump ship. Find a new contract (different client), either inside or outside IR35, and you don't have to worry about getting into trouble.

Thanks, for your reply.

The point is I don't want to change the job and I don't need to. I can work with a new agent whom I know but the question is if my current agent would have grounds to challenge that. Despite not having any binding contract with me.

**Lance** · 15 April 2021, 21:05

Originally posted by Joes View Post

I know that it sounds weird but I've never signed a contract with him or the company. No paperwork. I believe he must have one with the company but I am not tight with anyone by a contract.

so if you use another agent, and current agent still gets paid (why wouldn't he?), who's paying the new agent?
You really need to understand the commercial relationships before you try and get smart. They're probably quite a lot smarter,

**Joes** · 15 April 2021, 21:37

Originally posted by Lance View Post

so if you use another agent, and current agent still gets paid (why wouldn't he?), who's paying the new agent?
You really need to understand the commercial relationships before you try and get smart. They're probably quite a lot smarter,

How on earth the old agent would get paid? The invoices wouldn't;t go through him and there is no contract. Probably a lot smarter...lol

**hobnob** · 15 April 2021, 22:18

There would normally be 2 contracts: one between your limited company (or umbrella) and the agency, and one between the agency and the client.

In this case, the first contract might not exist. However, you don't know the status of the second contract.

Changing an agent when there is no contract in place