How can I remain self employed when dealing with agencies

[stevo kane]

I have just finished a long contract for a company that i knew. They had no problem with me being Self Employed. But now i am looking for a new contract and Agencies don't want to let me work as self employed. Can they actually do this? I don't really want to set up my own limited company (too much hassle) or use an umbrella (i won't earn any money). Does anyone have a solution ?

[philip@wellwoodhoyle]

Agencies don't have a choice. The law requires them to either employ you directly or to "engage" you through your own limited company or some form of umbrella company. An agency is breaking the law if it takes you on and pays you as self-employed.

[Not So Wise]

Not exactly correct, agencies could legally take on self employed/sole traders but if you don't pay your tax's/NI the agency can become liable to pay them instead, thus no agency (or client if direct) in their right mind will touch self employed/sole traders

Stevo, your only choices are umbrella and pay more tax if you don't want the "hassle" of sorting your own tax affairs or ltd if you want more flexibility to maximise your income

[northernladuk]

I don't really want to set up my own limited company (too much hassle) or use an umbrella (i won't earn any money).

Maybe an attitude re-think might actually be in order. You never know, actually doing what every single one of us has done might actually work!

[NotAllThere]

... You never know, actually doing what every single one of us has done might actually work!

That's just crazy talk!

[malvolio]

Simple answer - source your own work. Or don't do any...

HTH

[thunderlizard]

As with anything, agencies will take the easiest route out. So if there's somebody with comparable abilities who can be got under the structure they want, they will use him instead. But if you're in a different class, they'll turn a blind eye.

[philip@wellwoodhoyle]

Not exactly correct, agencies could legally take on self employed/sole traders but if you don't pay your tax's/NI the agency can become liable to pay them instead, thus no agency (or client if direct) in their right mind will touch self employed/sole traders

ITEPA 2003 Chapter 7 says otherwise - in simple terms it requires agencies to pay their "workers" as employees - so that means the worker using their own limited company, an umbrella, or a direct employee of the agency.

Virtually any other business model does have the choice of employee or self employed depending on the "badges of trade", but specific legislation has been enacted to stop agencies paying their workers on a self employed basis.

[kaiser78]

... I don't really want to set up my own limited company (too much hassle) or use an umbrella (i won't earn any money). Does anyone have a solution ?

If you see setting up a limited company as too much hassle then respectfully, you probably shouldn't be contracting and maybe take the easy option permie route.

[centurian]

(too much hassle)

Come to the wrong place for sympathy mate