Why do some agencies only use certain Umbrella's?

[curtis]

I got offered a contract but the agency said they will not work with the Umbrella I am using and will only use one of 4 they have on a list. Why is this as this sounds really dodgy to me like thay have some deal with the Umbrella.

Surely an Umbrella is just a company that provides PAYE services so why does it matter what one a contractor uses as they all do the same thing?????

[ratewhore]

Cos they get paid on referrals.

HTH...

[VectraMan]

Surely an Umbrella is just a company that provides PAYE services so why does it matter what one a contractor uses as they all do the same thing?????

Why does it matter to you which you use?

[curtis]

It matters to me which one I use as the they were asking me to use Parasol which charge more than the other Umbrella I use so I will be getting less pay.

[downsouth]

but contractually can they force you to use one of their umbrellas???

[VectraMan]

but contractually can they force you to use one of their umbrellas???

Of course! It's up to them who they do business with. And if they're giving you a choice of four umbrellas, then that's quite a lot of choice.

Parasol charged £60pm when I was with them a few years back. I'm sure it's more now, but the amount you save on a different umbrella can hardly be a major loss. Unless you're planning on using some dodgy off-shore, loan based system in which case you can fully understand the agent refusing.

[NotAllThere]

They justify it as a means of ensuring that they don't fall foul of MSC legislation.

Of course, if you change brolly each contract, you may not be able to legitimately claim any T&S expenses.

[original PM]

who were the other 3 on the list?

[dmini]

would it be an agency starting with H?? - dried grass?

[Ardesco]

Or thier parent company has an interest in that umbrella hence if you use the one they tell you to the group gets to take an even bigger slice of the wedge...