Preferred (compulsory) supplier umbrella & agencies?

[Captain Jack]

So dmini, was any of this advice any use to you or are you just an ignorant fecker?

Ho-ho-ho, it's the season of goodwill and all that.

Merry Christmas one and all,
Cap'n Jack.

[Captain Jack]

Bah, humbug.

Are you in tomorrow's ep of Dr Who, Cap'n Jack?

I'm afraid not, as I'm too busy appearing in Cinderella at Wimbledon theatre. Still, I will be getting my own series next year.

[dmini]

Well, one part being Hays

Their psl list didn't include P4 - yes I have had horrible dealings with them. Compared to some, I came out relatively unscathed - I got back my "deposit".
However, it did include:Giant, Parasol, Lester Sybersolve, 3-Sixty, JSA & Liberty Bishop.
I'm leaving my umbrella company to fight this out with them - they have taken & won legal action once, and are prepared to do the same again. The daft bit is that if I ran a limited company through my umbrella, that would be acceptable. However, my contract is well within IR35 - fixed hours working from a fault queue, hourly paid etc, so all I would end up doing is paying out extra money!
Some of the options they put forward want up to 30% of earnings as well!
Client won't get involved - have checked

[privateeye]

Prosperity4 pay agents £50 for referrals

https://www.prosperity4.com/contact_...ontractor.aspx

[VectraMan]

Computer People I think it was - they offered me an interview and started going on about how I had to use their preferred umbrella (from a list) as they wanted to make sure I pay myself in accordance with HMRC guidance relating to IR35 etc etc.

What do the agencies gain out of doing this?

[Rebecca Loos]

- sucking up to HMRC
- presumably they get a fee / % cut from the umbrella. Something anyway

[Lucifer Box]

What do the agencies gain out of doing this?

Exactly as Becs says. They get a cut from the umbrella and don't have to worry about providing any information to an IR35 enquiry. If an agent tries it with you, just tell 'em to feck off and mind their own business. Your remuneration is a matter for you and you alone (and HMRC of course).

[malvolio]

They've got the stupid idea (and, more importantly, have sold their clients the stupid idea) that doing so will protect them from employment claims by disgruntled contractors. Quite how they figure that out when the idea of IR35 is to make you into an employee when you don't want to be one is anyone's guess.

Also, there is a double-dealing scam with banks and other non-VATable clients (such as chunks of HMG...ermm...) that saves the client the VAT element of the contractor's fee, since they only pay VAT on the agency's cut if the fees are paid net of tax. To do that you have to be a de facto agency employee, although you'll be one with no employment rights whatsoever - bit like an 18th century millworker, in fact. Again, I don't remember the bit in UK Company Law that's allows you to pass your taxation liabilities on to a third party.

Wherever possible, tell them to stuff off and point out you run your business to suit you, not them. Eventually they'll only be taking on sheep and newbies...

[ASB]

"Quite how they figure that out when the idea of IR35 is to make you into an employee when you don't want to be one is anyone's guess."

[pedant] No it's just to tax you as an employee [/pedant]

Ultimately though if it's a condition of doing business with you that you use an umbrella from their PSL then surely there is little you can do other than decline the gig - unless it falls foul of whatever legal framework applies.

They, after all, can do business with whatever (legal) constraints they wish - as can you. Whther you can reach agreement under that is of course a different question.

[Mailman]

Im fairly sure that this would fall foul of the agency regulations (if you havent been a **** face and opted out that is) as they cannot make employment offers conditional on you taking up services they are offering.

But then again you have probably been forced to opt out thanks to PCG being a bunch of cnuts!

Mailman