Agency intermediary?

[BlackForest]

Hi,

This is kind of a noob question but I couldn't find the information in the articles/forum

I'm trying to land my first contract through an agency and they told me I will working for them (they will pay me) while the charge the client. I'll still have my limited company etc.

My question is: is this standard practice? what cut do they get approx.? 10-15%? They said this arrange effectively makes all their contractors out of IR35, is this true?

I understand after some years contracting you can directly contact the client and work directly for them, but I guess this is not feasible in the humble beginnings? Anyway I'm already working with this agency so I'll stick with them this time, just to know for the future...

thanks

[northernladuk]

There is so much wrong with this I don't know where to start but..

I will working for them (they will pay me)

You put it in brackets but they are not the same thing. You will be providing your services in return for payment yes. You do not work for them. You work for your limited.

They will also pay your LTD not you!!

They can get what they can. With a large client they maybe on a fixed rate, for smaller clients with new contractors like yourself they will cream what they can up to 100% of your rate if they can.

The IR35 question is not even remotely ture. Go read up on it.

If you are clever and lucky enough you can go get work directly with clients, it isn't impossible just not as common as through agents. There is no timeline for doing this, you can do it from day one if you can find a client, you may never do it.

You really need to read all the guides on the right and start to understand your business and they way you work quickly. IR35 sounds like somewhere you need to start.

[Scrag Meister]

The line of responsibility is

You -> Your LTD -> Agent -> ClientCo.

They will take whatever %age they can unless they are restricted by the clientco contract.

Going direct to the client doesn't always mean no agent, as I had an agency inserted in the equation by the client when I went direct to a previous client back in March.

[BlackForest]

Sorry for being careless with the terminology. I had read the guides but didn't realize it matters.

thanks a lot for the info. I'll still be super careful with the IR35 then and I understand going through agency is the usual way

cheers

[northernladuk]

Sorry for being careless with the terminology. I had read the guides but didn't realize it matters.
thanks a lot for the info. I'll still be super careful with the IR35 then and I understand going through agency is the usual way

cheers

You have got to be kidding me right???

Admin can you move this to general so we can respond in kind please?