Reply to: Contract agency not willing to sign a contract with my umbrella company

[Wanderer]

How the **** or more pertinently, why the **** are foreign nationals still being allowed into the UK and take employment from unemployed UK contractors when there's a shortage of IT jobs in the fecking country?

Many people from the UK go and live and work in other countries so it cuts both ways. It would be a pretty screwed up world if we couldn't move freely and businesses couldn't recruit the people they needed to expand their business.

[prpanther]

I had the same experience once..Agency gave me a list of 3 brollies and I had to choose one..I used them until I set up my Limited co., then terminated their service..
Thats what you can do too..

Cheers for this. Its a good suggestion and thanks to everyone for your comments on the offshoring scheme. I think I am going to go with the recommended umbrella company to play safe.

[BolshieBastard]

How the **** or more pertinently, why the **** are foreign nationals still being allowed into the UK and take employment from unemployed UK contractors when there's a shortage of IT jobs in the fecking country?


Makes the steam off my piss boil this, it really does.

BTW Im working and not unemployed.

[2solid]

Hello all,

I am new to this forum. I just got my first contract here in the UK. The agency that hired me is a leader in the UK. Since I don't have a limited company here, I am opting for an umbrella company. But my agency is refusing to work with my preferred umbrella companies and instead insisting to choose one from their preferred list.

I spoke to the umbrella companies in their list. They seem to provide PAYE type scheme with a minimal invoicing fee every month. But unfortunately, I am losing a big chunk in tax every month.

Alternatively, I was thinking of choosing an offshore company scheme which gets me better returns. While there are arguments for and against this scheme, this post is not related to this.

I want to know, if it is legal for an agency to force me to use one of their own recommended umbrella?

Thanks.

I had the same experience once..Agency gave me a list of 3 brollies and I had to choose one..I used them until I set up my Limited co., then terminated their service..
Thats what you can do too..

[realityhack]

Ok I believe an agency can do that, but I've not experienced it myself. Seems strange that the agency should choose to exclude any jobbing contractor happy with their current setup and unwilling to use their PS.

What brollies are the agents pushing?

Re-reading your post, It's likely that the agency has done it's due diligence and excluded dodgy schemes like EBTs, or brollies making spurious claims. AFAIK, the difference in what you should (legally) be paid from one brolly to another is down to their rates. The sums should be the same otherwise.

[Sockpuppet]

As far as I know, you can use whatever umbrella co or ltd arrangement you choose.

You can use any umbrella you want to. Instead the agency can decide to form contracts with any Ltd company they want to. If those don't merge then you're stuck.

FWIW I won't sign a contract with an offshore Ltd company if I was hiring. No benefit to me so why should I?

[lxt04]

Almost certainly. It is just possible it is an illegal restraint of trade - but very unlikely.

I'm not sure it even counts as a restraint of trade, because it's not preventing you from taking other contracts. It's merely the terms of business you must accept to work with this agency.

Normally I'd say this was pretty unreasonable, but from the sounds of things your current plans are potentially rather dodgy, so I'd sympathise with the agency...

Why not have your umbrella company contract with one of theirs ?

Otherwise, go Ltd Co - if you are going to be here a while then its what you want anyway. The HMRC is cracking down on offshore schemes and trust me when I tell you - especially if your offshore Umbrella is Global International / Cellbrite - they won't look out for your interests if the taxman comes knocking..........the Ltd Co is the only legal way to go.....

[ASB]

I want to know, if it is legal for an agency to force me to use one of their own recommended umbrella?

Thanks.

Almost certainly. It is just possible it is an illegal restraint of trade - but very unlikely.

Basically any entity can do business on whatever terms it like.

[pmeswani]

I am really afraid of IR35 and other unknown things

If you are afraid of unknown things, then why are you chosing an offshore company? Are you really keen on being a possible target from HMRC? Seriously, go with an inland Umbrella company. In any case, going with an Umbrella company will not have any bearing on IR35.

If you are going Ltd Co, all you need to do, as a first step, is to get your contract reviewed by a IR35 specialist, and as a second step is to be careful of your working practice. I know there are other IR35 pointers, but those 2 will be good starters for 10.

And as already stated, IR35 is currently being reviewed.

[prpanther]

Yet you are considering an offshore scheme. FFS!

IR35 is being reviewed btw.

[Sausage Surprise]

I am really afraid of IR35 and other unknown things

Yet you are considering an offshore scheme. FFS!

IR35 is being reviewed btw.

[prpanther]

Open a limited company it will be easier all round. Agents don't like it when you argue with them.

I am really afraid of IR35 and other unknown things

[prpanther]

Hi prpanther,

Welcome to CUK. You've posted this in General, but I'll move it to business/contracts as it's more likely you'll get constructive advice there.

As far as I know, you can use whatever umbrella co or ltd arrangement you choose. I wouldn't take kindly to any agency forcing me to use a preferred supplier.

RH

Thanks for the advice. Any idea, how I could resolve this? The agency is simply not willing to raise Purchase order etc unless I choose one of their supplier. Unfortunately, they seem to have a bit of upper hand, since they referred me to the client and I doubt if the client would be willing to offer a contract to me, if I approach them directly without this agency.

[meridian]

Hello all,

I am new to this forum. I just got my first contract here in the UK. The agency that hired me is a leader in the UK. Since I don't have a limited company here, I am opting for an umbrella company. But my agency is refusing to work with my preferred umbrella companies and instead insisting to choose one from their preferred list.

I spoke to the umbrella companies in their list. They seem to provide PAYE type scheme with a minimal invoicing fee every month. But unfortunately, I am losing a big chunk in tax every month.

Alternatively, I was thinking of choosing an offshore company scheme which gets me better returns. While there are arguments for and against this scheme, this post is not related to this.

I want to know, if it is legal for an agency to force me to use one of their own recommended umbrella?

Thanks.

You seem to be implying that with your chosen brollie you wouldn't be losing a chunk in tax every month.

Care to enlighten us as to which brollie is your chosen one? That may explain why the agency doesn't want to do business with them.