Agency Issues

[wetpanda]

Hi all,

I have just started my first contract and I'm having a few issues with the agency and I'm hoping for some (useful) advice.

A bit of background, I run a small IT Services company mainly offering IT support to small businesses. Things are a bit quiet at the moment so when a local agency rang me up asking if I was interested in a 2 month contract I though why not.

The money is poor but it's local and a fairly easy job, and the employer is being flexible with my 'timekeeping'.

However the agency, Proactive Personnel, are more of a clerical/industrial temping agency than IT Contracting agency, although they have assured me they do IT contracts all the time.

I actually started the contract yesterday, but I still have not had a contract to sign, despite me pestering them for the last 2 weeks. I also can't get a suitable answer out of them about payment. They had all my company details and bank details but haven't clarified if/how I invoice them and what to do about VAT.

I turned up yesterday and was given a timesheet for the agency and told to fax that back every week.

So I suppose what I want to know is, is this normal (the timesheet bit) and what should I do about the agency? The money is poor enough, without them thinking I will pay the VAT out of what i'm getting, and they don't seem to be able to organise the proverbial drinking session. I'm on site without having signed any contract, therefore presume i'm not insured by them. On one score I'm thinking walk away, it's not worth the hassle, but on the other money is money and it's not the companies fault.

Any suggestions greatly appreciated.

M.

[Diestl]

Tell them you want the contract now or you're leaving and also say you want the rate doubled.....no tripled.

Show them who's boss.

[DaveB]

If you're not already registered for VAT do it now. You add VAT to your invoices and then pay it to the VAT man. Get on the Flat Rate Scheme to save some money. If you have an accountant talk to them about it. If you dont, get one and talk to them about it. Dont get the VAT wrong, they will come after you in a very serious way if you do.

As far as the contract is concerned I would tell the client that you wont be back again untill you get one. Get them to chase the agency, it's much more effective that way.

[triboix]

VAT & Contract

Hi wetpanda,

Strictly speaking, you don't need a contract to work on the client site, send invoices and get the payments. It's however much, much better to have one.

This happended to me once, and although we more or less agreed on the contract's terms, I've never had a contract in my hands... So I decided now to never go on site without a signed contract in my hands before, and keep looking for other things in the meanwhile Best to be clear with the client as well!

Regarding VAT, things are simple. Either you're not registered and may not add VAT to your invoice or you're registered and you are obliged to. Anyway, if you add VAT on the invoice, you are legally obliged to indicate your VAT number as well, so if you don't have one... For a small business, the best is to register to VAT and to the Flat Rate Scheme, so you can make some money out of the VAT you invoice.

If you don't have an accountant yet, get one. It's not free, but it's best to pay £80 per month than to get a tax investigation.

Regarding the insurance, a lot of agencies do not provide one. Anyway, it's best that your limited is insured against Public Liability and Professionnal Indemnity. Add Employer's Liability to be IR35 friendly. These are not too expensive, actually.

Hope this helps,

Fabrice

[ChimpMaster]

Well could it be that they see you as a "temp" rather than a contractor?

As a clerical temp they wouldn't issue you a contract, and this would also explain why the rate is low. In that case you wouldn't bother with the VAT bit etc and just be seen to be paid as a salaried employee of the agency.

That could explain why they're confused about you asking for a contract.

[wetpanda]

Thanks for the help guys.

My company is VAT registered etc and therefore I am obliged to charge it and account for it.

It does sound more like they view me as a temp and not a contractor, but my concern is they are just going to pay money into my account and then I'm going to have the hassle of trying to account for it, sort the vat and everything.

Thanks again.

M.

[errorista]

why dont you write up a contract and offer it to the agency, better still, offer it to the client?

you run a service company, any reason why you should not originate the contract?

you can speak to the client, maybe they have not signed anything either?

personally i would simply VAT invoice whoever and include my terms, as well as any disclaimers and expenses.

be proactive

2c error

[wetpanda]

why dont you write up a contract and offer it to the agency, better still, offer it to the client?

you run a service company, any reason why you should not originate the contract?

you can speak to the client, maybe they have not signed anything either?

personally i would simply VAT invoice whoever and include my terms, as well as any disclaimers and expenses.

be proactive

2c error

Sometimes the simplist ideas are the best and it's easy to overlook the obvious.

Thanks errorista

M.