I've just got a new contract and the agency is compelling me to use one of the umbrella company on its approved supplier list. is this legal and has anyone come across this before?
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Agency tied in to Umbrella company
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Originally posted by bsol View PostI've just got a new contract and the agency is compelling me to use one of the umbrella company on its approved supplier list. is this legal and has anyone come across this before?
If there's no compliance issue then they should let you use whoever you want, but it's certainly not illegal to restrict it."Being a permy is like being married, when there's no more sex on the cards....and she's got fat."
SlimRick
Can't argue with that -
I think it is in the best interest of an agent to deal with an umbrella company that they trust and will not be troublesome to the contractor. A happy contractor is not only good for the client, but also profitable for the agent. Well, one would assume.My mind has gone blank. I wonder if it was always that way.Comment
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Originally posted by bsol View PostI've just got a new contract and the agency is compelling me to use one of the umbrella company on its approved supplier list. is this legal and has anyone come across this before?
Many smaller agencies are wary of the AWR and how it related to Ltd Cos, so putting contractors to umbrella's mitigates their liability with regards to AWR.
Explain to them (assuming you are ) a genuine business trading outside of IR35, and therefore outside the scope of the rules, ask your accountant to liaise with them to assure them. Some agencies with Ltd's outside IR35 are still asking the Ltd to indemnify the agency in their contracts.Comment
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Originally posted by SallyPlanIT View PostWe are seeing a lot of this from agencies in the last few weeks/days.
Many smaller agencies are wary of the AWR and how it related to Ltd Cos, so putting contractors to umbrella's mitigates their liability with regards to AWR.
Explain to them (assuming you are ) a genuine business trading outside of IR35, and therefore outside the scope of the rules, ask your accountant to liaise with them to assure them. Some agencies with Ltd's outside IR35 are still asking the Ltd to indemnify the agency in their contracts.
Perhaps the agencies could try reading the PCG or REC's explanations of the rules. Or perhaps we shouldn't expect them to understand their own business...Blog? What blog...?Comment
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