Reply to: Contractor can choose umbrella?

[northernladuk]

I'll do it. You get to work with me 8 hours a day as well. Double bargian.

[Maslins]

Update - looks unlikely we'll be pressing ahead with this. Previous possible biz partner wants to pursue their own thing without us.

Any senior umbrella workers reading this who might be interested in setting something up together, do let me know.

[Maslins]

Sorry, was on holiday last week, and not as hot on checking this part of the forum!

What's the verdict?

Ummm, TBC. Have had a brief discussion with a couple of people, sent one of them a proposal, not heard back yet.

General consensus seems to be it is a bit of a cosy club. Only way to make money is to get a lot of contractors. A fair bit of the umbrella's fee to the contractor ends up getting paid to the agent...and it can be hard to get on an agent's approved list. We wouldn't particularly be looking to do it as a money making thing, at least in the short term. Main goal for us (short term) is trying to retain otherwise happy clients, albeit with a different offering, if they end up with no outside IR35 options post Apr 2020. Who knows what the future will hold, but I half expect an initial OTT reaction from private sector (ie lots pushed to umbrella/permie), then gradual drifting towards more outside IR35 roles being offered.

We certainly don't have the experience or contacts in house to run an umbrella, and I'm not naive enough to just have a go at it (the infamous "how hard can it be"!). So realistically would need to team up with someone else. Finding the right person where it works well for both parties isn't easy.

[Invisiblehand]

Let's hope there isn't an English test as part of the sign up process.

Haha, yeah my bad.

[northernladuk]

What's the verdict?

My firm tried to Shepard me into there new one this morning.

Let's hope there isn't an English test as part of the sign up process.

[Invisiblehand]

vaguely toying with the idea of us setting up our own umbrella company

What's the verdict?

My firm tried to Shepard me into there new one this morning.

[lucyclarityumbrella]

when I stated I wanted to use them I was told no not on the list.

[Anonimouse]

Pardon?

I was working through an agency and was aware they had contractors using contractor umbrella, but when I stated I wanted to use them I was told no not on the list. MY thoughts are agency bod was getting bung from preferred list

[lucyclarityumbrella]

I've never spoken to a brolly that didn't offer a referral fee.

Always good to not be the norm then

I'm not saying it's perfect and can't speak for every Agency but I know ASL's are generally about compliance and the referral fee is a deterrent to the 'bung'.

I would like to think so too, but for me the relationship has to be about service. I keep the contractor and the agency happy and then there are no problems, we all get more business!

[ComplianceLady]

Bit of a sweeping statement! I am aware of compliant one's still slipping pre paid credit cards under the recruiters noses!



So those that are compliant and not operating with referrals are ignored?



Even though the referral costs have taken some brollies under as they are not sustainable unless the contractor numbers are in the high figures! For some it simply isn't a financial option, compliance costs an arm and a leg as it is!

We have minimum levels of earnings and below that the referral fee isn't paid. I've never spoken to a brolly that didn't offer a referral fee. Part of my role is to stop the slipping of credit cards etc. we check the numbers per brolly per recruiter and try to spot patterns etc.

I'm not saying it's perfect and can't speak for every Agency but I know ASL's are generally about compliance and the referral fee is a deterrent to the 'bung'.

[lucyclarityumbrella]

Not convinced about the bung thing, contractor umbrella had people through a particular agency, but said agency refused to allow.

There are rare occasions when you can gain an exception, but rarely

[northernladuk]

Not convinced about the bung thing, contractor umbrella had people through a particular agency, but said agency refused to allow.

Pardon?

[Anonimouse]

Not convinced about the bung thing, contractor umbrella had people through a particular agency, but said agency refused to allow.

[gables]

(1) for me, third contract using umbrella coming up, third agency, same umbrella

[lucyclarityumbrella]

Nope, there's a per timesheet referral fee - that's because we know the non-compliant brollies will offer cash to the recruiters so we try to combat it but that's minimal amount.

Bit of a sweeping statement! I am aware of compliant one's still slipping pre paid credit cards under the recruiters noses!

Same amount for every member of the ASL and the brollies are chosen based only on compliance and service.

So those that are compliant and not operating with referrals are ignored?

Any brolly would happily pay a referral fee so the idea that Agencies say 'only use ABC' because ABC pay a large referral fee doesn't stack up.

Even though the referral costs have taken some brollies under as they are not sustainable unless the contractor numbers are in the high figures! For some it simply isn't a financial option, compliance costs an arm and a leg as it is!