• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Contract with agency

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Contract with agency

    Me > Agency > Client

    Possibility of coming off the bench.

    Client has determined the role should be Inside IR35. Agreed rate would be fine with me if outside, but as things stand I'm going to pass. Agency has now come up with a "solution", where I would work directly for them as a consultant and they would assess the role as Outside IR35. The Agency say they have diligently assessed the role and genuinely believe it to be outside. I've asked for a copy of their contract and to see a Status Determination Statement. This all sounds a bit dubious to me but if they are willing to take all the risk why shouldn't I proceed?

    #2
    Hmm... does sound suss if the Client has already done the assessment.

    What about the contract and working practices has changed in order for it to now be outside? If it's been truly repackaged as a proper service provider agreement then it could be fine but it needs to be carefully checked to make sure it's not a sly dodge.

    Comment


      #3
      The agent's concern is to secure their commission, not the accuracy or legality of the contract. Look at it from that perspective...
      Blog? What blog...?

      Comment


        #4
        So there are two ways they've created this solution. One is where they've discussed it with the client and have both agreed that the agency will be providing a managed service solution to the client for a fixed cost or the other option where the agency are just taking the piss and creating a convoluted setup to try make the situation look like something it isn't.

        You can bet your bottom dollar it's the latter and you'll just be on client site doing exactly what you would be doing inside. I'd be there is a bigger cut from your take home compared to outside as well. This sounds very much like the days when people like Hyphen were hoovering up Barclays gigs and taking on unsuspecting contractors to do the work while they pay a much lower wage. This was a very thinly veiled set up back in the day when IR35 didn't really matter. Now there is legislation in place it's almost negligent.

        It's this type of stuff that's gonna get HMRC start up up investigations again IMO. Very poor from the agency.

        In order of preference I'd say you 1) Leave it alone and go get something else 2) If you have to take it go inside as normal 3) if you are really desperate entertain them but be very aware this could very likely bite you at some point in the future. Did I say I'd only consider 3 if I was really desperate?
        Last edited by northernladuk; 18 May 2021, 11:12.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Is the agency a bigco, subject to the new legislation. If not, the liability lies with you.
          Down with racism. Long live miscegenation!

          Comment


            #6
            Originally posted by NotAllThere View Post
            Is the agency a bigco, subject to the new legislation. If not, the liability lies with you.
            Doesn't matter what size the agency is - what matters is the size of the end client...
            merely at clientco for the entertainment

            Comment


              #7
              Originally posted by eek View Post

              Doesn't matter what size the agency is - what matters is the size of the end client...
              Yes. It does - naughty nat - advice to the OP, so long as the end client is not small, go for it. Nothing to lose. Except the agency may lose their client when the client finds out.
              Down with racism. Long live miscegenation!

              Comment


                #8
                If you actually want my concern - it's this scenario

                Agency says you are outside and you start work

                Agency issues a SDS status change (via an "appeal") prior to the end client paying their first bill which says that the contract is inside.

                The invoice in your third and 4th months is lost from the tax due in months 1 and 2 that you didn't pay.

                All the above is perfectly possible under the IR35 rules and was one of the "real" moments contained in the HMRC seminar both me and JamesBrown attended.
                Last edited by eek; 18 May 2021, 16:52.
                merely at clientco for the entertainment

                Comment


                  #9
                  Thanks for the comments. I told the agency I didn't want to go with their proposed solution so the two options, if the client wanted me, were Outside IR35 with end client, or Umbrella at enhanced rate. Client wouldn't budge on outside but has boosted day rate by 25%. Not quite up to standard rate if outside but pretty good. Start Monday ?

                  Comment

                  Working...
                  X