Can I side-step an agency in the recruitment process?

[bmflex]

Long story short I have been contracting for several years and was made an offer for a new contract role last week. I used to operate via a Ltd company, but, (let the flaming begin...) I handled my accounts terribly which left me with a large outstanding Corp and VAT bill which took a lot of juggling for me to satisfy. I wanted a easy solution. So, i joined an umbrella.

Long story short the agency has mentioned they will no longer accept contractors via Umbrellas due to the new AWR legislation and that I must operate via a Ltd company. It appears the agency and not the client are the sticking point here. I do not want to go back down the Ltd company route.

What would be the ethics and practice behind going to the client direct for employment or alternatively looking at the job via a different agency? I know the client will not want to sour relations with the agency if they hired me direct, but surely this could be kept quiet? Has anyone experience with this?

Any feedback would be much appreicated.

[jmo21]

I know the client will not want to sour relations with the agency if they hired me direct, but surely this could be kept quiet? Has anyone experience with this?

What makes you think the client WILL take you on direct?

You never know, they might let you do that.

My opinion is they won't, first because they have a contract with the agency, second because they probably prefer to have the agency in the middle as many companies do.

I suppose the third reason is that they may well wonder what tulip you'll try to pull on them after pulling a fast one on the agent.

Are your rates that low that you cannot justify ~£1200/year on an accountant to stay Ltd?

[SussexSeagull]

Won't employ through an Umbrella due to AWR? Interesting.

If you really are concerned about having a huge end of year tax bill, don't charge VAT and take a reasonable salary and pay PAYE each month.

[TheFaQQer]

I know the client will not want to sour relations with the agency if they hired me direct, but surely this could be kept quiet?

Wouldn't bet on that, even if the client wants to take you direct (or via an umbrella). It only takes an agent to say "oh, why aren't you looking for a new person?" and the client to say "No, we took bmflex on direct"...

If you really are concerned about having a huge end of year tax bill, don't charge VAT and take a reasonable salary and pay PAYE each month.

If you are a VAT registered Ltd, then you must charge VAT. If you aren't, then you can't - there's no discretion to it though.

[jmo21]

If you really are concerned about having a huge end of year tax bill, don't charge VAT and take a reasonable salary and pay PAYE each month.

That doesn't even make sense.

You charge VAT, you hand VAT to HMRC. Simple.

If you're on the fixed rate scheme, you actually get to keep a little bit of it.

It certainly doesn't cost you anything (other than a little time dealing with it.

[Langkawi]

You can authorise your accountant to file your VAT returns for you and set up a direct debit with HMRC who then debit your business bank account for the monies due.

Simples!

[SussexSeagull]

That doesn't even make sense.

You charge VAT, you hand VAT to HMRC. Simple.

If you're on the fixed rate scheme, you actually get to keep a little bit of it.

It certainly doesn't cost you anything (other than a little time dealing with it.

If your turn over is less than £73,000 you don't need to register. However I agree the flat rate scheme can be a 'tidy earner' and is quite easy to do the returns.

The point is the OP doesn't have a great track record of retaining money to give to HMRC so they may want a no thrills approach.

[jmo21]

If your turn over is less than £73,000 you don't need to register. However I agree the flat rate scheme can be a 'tidy earner' and is quite easy to do the returns.

The point is the OP doesn't have a great track record of retaining money to give to HMRC so they may want a no thrills approach.

That wasn't clear but I get you now.

:-)

[d000hg]

If the agency refuses to take him on, isn't the OP quite entitled to approach the client directly?

[northernladuk]

If the agency refuses to take him on, isn't the OP quite entitled to approach the client directly?

He can try but the fact the client has an agent means he doesn't want to deal direct for one reason or another and the agent will kick up a fuss so less reason for the client to touch him.

He can but I am sure there are many ways for him to spend his time more productively. Wind, in and Pissing comes to mind.

Think of it situation though, he is going to the client because he is incapable of managing a LTD so takes the easy out with a brolly. That is really going to further impress the client.