Reply to: Inside IR35 - Which is the best umbrella company to ensure compliance

[Kurzon]

I ended up going for Nasa umbrella group for my current assignment. It's my first contract inside IR35. They gave me the option to include holiday pay upfront in my monthly payments - glad I did that. I'm quite happy so for with the support as well, they've been answering my emails usually on the same day. My recruitment agency on the other hand is rubbish.

[Tineen]

Pick one of their preferred and get on with it. It's only a short term gig so isn't the end of the world.

This +1

I'm in the same boat of having to use a brolly from a PSL and have already told the agency that I don't want to use any on their list. They're looking into allowing others but in the meantime, I'll use one from the PSL if need be and change as and when needed. Not really worth walking away from a secured role for the sake using one from a preferred list, especially if it's a short term gig.

[GhostofTarbera]

Agreed. Agency has now doubled down saying they will not take on any new umbrella companies at this time as they do not want to do the additional due diligence and work to do so.

I only have contact with the team I would be working with and not with the company hiring department that works with the agency. As the contract is through the agency, if I go direct to the team, am I at risk of losing my contract altogether?? Thoughts on next steps would be really appreciated :-)

Walk away that will tech them a lesson

ps every other role you are offered under IR35 will be the same

[nikwax]

Thanks - Any suggestions for umbrellas that will do salary sacrifice?

I don't think any umbrella does salary sacrifice as defined by the HMRC.

Some call it salary sacrifice, but in reality it is a discretionary employer contribution.

[northernladuk]

Agreed. Agency has now doubled down saying they will not take on any new umbrella companies at this time as they do not want to do the additional due diligence and work to do so.

I only have contact with the team I would be working with and not with the company hiring department that works with the agency. As the contract is through the agency, if I go direct to the team, am I at risk of losing my contract altogether?? Thoughts on next steps would be really appreciated :-)

Pick one of their preferred and get on with it. It's only a short term gig so isn't the end of the world.

[bromleygirl]

Hence talk to the client. They have the power to change the agency's mind. Depends on how much they want you for hte role of course, but nobody will like being forced to drop their choice because of third party interference...

Agreed. Agency has now doubled down saying they will not take on any new umbrella companies at this time as they do not want to do the additional due diligence and work to do so.

I only have contact with the team I would be working with and not with the company hiring department that works with the agency. As the contract is through the agency, if I go direct to the team, am I at risk of losing my contract altogether?? Thoughts on next steps would be really appreciated :-)

[malvolio]

It gets worse! I went back to the agency with a strongly worded e-mail stating I should not need to use their preferred list and that I should be able to use whichever umbrella company I want providing it is compliant...I've now been told by the agency that umbrellas are no different to their own agency providing PAYE services and those umbrella companies will eventually fall foul of the Agency Worker Regulations as they roll up annual leave into the daily rate..

I don't agree with this at all as there are many differences between umbrella companies and between umbrella companies in general and the agency offering a PAYE service. I'm now very close to walking away from the job and looking elsewhere. I don't want to as I want to work for the "real" employer but I'm not liking the response from the agency at all...

Hence talk to the client. They have the power to change the agency's mind. Depends on how much they want you for hte role of course, but nobody will like being forced to drop their choice because of third party interference...

[bromleygirl]

Happens a lot. Tell them you will walk away from the gig if they won't agree to you using your choice. Then tell the client why you won't be taking the gig...

It gets worse! I went back to the agency with a strongly worded e-mail stating I should not need to use their preferred list and that I should be able to use whichever umbrella company I want providing it is compliant...I've now been told by the agency that umbrellas are no different to their own agency providing PAYE services and those umbrella companies will eventually fall foul of the Agency Worker Regulations as they roll up annual leave into the daily rate..

I don't agree with this at all as there are many differences between umbrella companies and between umbrella companies in general and the agency offering a PAYE service. I'm now very close to walking away from the job and looking elsewhere. I don't want to as I want to work for the "real" employer but I'm not liking the response from the agency at all...

[eek]

Update - Agency is now saying I am restricted to the 5 umbrella companies on their "preferred" list to use as my umbrella! Has anyone else come up against this issue and if so, how have you challenged the agency??

Looks at previous post - I wonder why?

[malvolio]

Update - Agency is now saying I am restricted to the 5 umbrella companies on their "preferred" list to use as my umbrella! Has anyone else come up against this issue and if so, how have you challenged the agency??

Happens a lot. Tell them you will walk away from the gig if they won't agree to you using your choice. Then tell the client why you won't be taking the gig...

[bromleygirl]

Ask them and the agency how much they are paying the agency and whether it’s commission based or a large fixed marketing fee

Update - Agency is now saying I am restricted to the 5 umbrella companies on their "preferred" list to use as my umbrella! Has anyone else come up against this issue and if so, how have you challenged the agency??

[eek]

Thank you Everyone, really appreciate all of the recommendations - Does anyone happen to have any experience of PayStream?

Ask them and the agency how much they are paying the agency and whether it’s commission based or a large fixed marketing fee

[bromleygirl]

Clarity and Orca do, as I said Fairpay is an unknown simply because I've never asked.

Thank you Everyone, really appreciate all of the recommendations - Does anyone happen to have any experience of PayStream?

[eek]

It isn't just mechanisms. They will argue they've spent time and money doing the diligence to on board them first. The one time I went with an agent they cited this and we've evidence of the same in other brolly choice questions. Some won't budge but didn't take much more than another email saying I appreciate that but would still like progress with Lucy. A few days later and away we go.

I'm sure Clarity do sacrifice.

Clarity and Orca do, as I said Fairpay is an unknown simply because I've never asked.

[northernladuk]

Thanks and great point - the agency has 5 umbrellas on their PSL but I've challenged the need to go with 1 of their preferred suppliers just for the sake of making it easier for the agency as they have already got contracts and invoice mechanisms in place with the PSL umbrellas. I should be free to choose which umbrella I want as long as it's compliant as ultimately the umbrella acts as my employer. I'll contact Lucy at Clarity and ask if they can do the salary sacrifice.

It isn't just mechanisms. They will argue they've spent time and money doing the diligence to on board them first. The one time I went with an agent they cited this and we've evidence of the same in other brolly choice questions. Some won't budge but didn't take much more than another email saying I appreciate that but would still like progress with Lucy. A few days later and away we go.

I'm sure Clarity do sacrifice.