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

[Wanderer]

Wouldn't that make the Ltd an MSC, which can have tax implications?

I don't think so, so long as you are the director, only shareholder and you control the company and it's bank account, I can't see that it could be a MSC.

Lots of companies delegate all the book keeping to an accountant, there is nothing dirty or wrong with that.

[Taita]

You will probably find that the client actually wants to hire someone through an agency. Some options:

1. Try and get the umbrellla to argue your case to the agency for you.
2. See if the agency will strike a deal with another agency to represent you to the client
3. Take a deep breath, form a LTD company again and get yourself a really good accountant who will keep you on the straight and narrow. You'll save a lot of money in tax too....

This is sensible advice. If the agency are concerned about AWR they should be reassured by the umbrella (the big brollies believe they have AWR covered). If they are still worried it won't take them much time to persuade the client that AWR applies equally to the client!

Don't ever believe you can keep side-stepping an agent a secret. Most of the time their relationship with the client is quite good. Even if it is not, they will be suspicious about you turning down the opportunity and can very easily check. You don't do yourself favours by being underhanded.

[TheFaQQer]

Get an accountant to manage it, and stick to the processes. Pay salary and check with accountant before extracting dividends.

Wouldn't that make the Ltd an MSC, which can have tax implications?

[Scrag Meister]

As previously said, many clients won't take you directly. I went direct to current main ClientCo and they inserted an agency anyway.

Its working fine. So I'm happy except for the monthly invoice and 3 week payment terms but they are paying so far (8 months) so no issue really.

Why are you avoiding running an Ltd? Because you don't trust yourself or cos you aren't permitted to run a company after your previous problems?

Get an accountant to manage it, and stick to the processes. Pay salary and check with accountant before extracting dividends.

It really isn't that hard.

[Wanderer]

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?

You will probably find that the client actually wants to hire someone through an agency. Some options:

1. Try and get the umbrellla to argue your case to the agency for you.
2. See if the agency will strike a deal with another agency to represent you to the client
3. Take a deep breath, form a LTD company again and get yourself a really good accountant who will keep you on the straight and narrow. You'll save a lot of money in tax too....

[d000hg]

I can see the client might not be interested, but the agent doesn't seem to have a leg to stand on here. If they got him the gig and then he turned them down and went direct or through another agent, then for sure they might come after him.

[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.

[d000hg]

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

[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.

:-)

[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.

[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!

[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.

[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.

[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.

[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?