Why does UK agencies insist I have to use umbrella?

[puisan]

My company is based in another EU country. I have a potential 1 month contract in the UK. The UK agency I went through insist I cannot invoice them, but instead invoice an umbrella company that will take a few days worth of money. I'm sure foreign companies doing work in the UK does not all have use an umbrella company in the UK in order to get paid to their local bank?

In addition to that, the umbrella company only does 3 month contracts, and since the potential gig is only 1 month, they have to overcome this by having a 3 day notice period. So on the first day of the gig, they could give me a notice, and 3 days later I'm out. Very skeptical...

[northernladuk]

Is this really worth it?? You mention your company is in another EU country? Are you in another EU country as well? If so is this all really worth a one month contract.

I suspect the agency is pulling this one as it just isn't worth setting all the bank details and doing the relavant paperwork for 1 month as they will be getting next to nothing in the way of profit from it so are out to do as little work as possible.

Something just isn't right about this and would ask again, is this really worth it?

[TheFaQQer]

My company is based in another EU country. I have a potential 1 month contract in the UK. The UK agency I went through insist I cannot invoice them, but instead invoice an umbrella company that will take a few days worth of money. I'm sure foreign companies doing work in the UK does not all have use an umbrella company in the UK in order to get paid to their local bank?

NO, foreign companies don't - but they don't go through agencies either to find work, so don't have to deal with idiots who only have two ways for you to work (umbrella or UK Ltd). If the agency can't handle the concept of you invoicing them, and them paying you in response to that invoice, I'd walk given the length of contract.

In addition to that, the umbrella company only does 3 month contracts, and since the potential gig is only 1 month, they have to overcome this by having a 3 day notice period. So on the first day of the gig, they could give me a notice, and 3 days later I'm out. Very skeptical...

What difference does any notice period make - you are paid for the days / hours that you work for the client. You could be given a three month contract with no notice (i.e. they can't terminate the contract early). Day 1, they decide that it's not working, so tell you not to come in any more - upshot is that they stick to their notice period (they aren't giving you notice), and you are under contract to stay available for the duration. I wouldn't fret over it.

[Brussels Slumdog]

My UK Umbrella company does short term contracts

In addition to that, the umbrella company only does 3 month contracts, and since the potential gig is only 1 month, they have to overcome this by having a 3 day notice period. So on the first day of the gig, they could give me a notice, and 3 days later I'm out. Very skeptical...

Find another umbrella company as I often do short term training contracts
in UK. The last one was 2 weeks.
They charge by the week.

[NeilExcellium]

Yes we can

I work in a Umbrella Co - we can do that - give me a shout for any more advice

[puisan]

NO, foreign companies don't - but they don't go through agencies either to find work, so don't have to deal with idiots who only have two ways for you to work (umbrella or UK Ltd). If the agency can't handle the concept of you invoicing them, and them paying you in response to that invoice, I'd walk given the length of contract.

I also thought they did this to make it easy for themselves, but the agent keeps saying it would be illegal due to a law implemented over a year ago. What law would that be? Something with money laundering?

I asked the agent what about all those companies from other EU countries doing work / providing services in the UK. They surely don't have to use an umbrella company, otherwise the UK would be very unattractive for business. Agent then said they all must have a bank account in the UK. Makes no sense to me.

[Tarquin Farquhar]

I also thought they did this to make it easy for themselves, but the agent keeps saying it would be illegal due to a law implemented over a year ago. What law would that be? Something with money laundering?

I asked the agent what about all those companies from other EU countries doing work / providing services in the UK. They surely don't have to use an umbrella company, otherwise the UK would be very unattractive for business. Agent then said they all must have a bank account in the UK. Makes no sense to me.

It's bollocks. I've done what you describe, no problems. Your agency are onanists. Sadly, we have let these muppets own us.

[Not So Wise]

Agency is talking tulip, they can accept non UK but EU company/bank accounts (actually last time i looked it was illegal for them to refuse to do so)

Problem is they don't want to deal with the little extra hassle that might crop up with dealing with international business

Look to see if agency deals with European contracts, if they do, fight it because their accountants know how to handle things and is just the agent being a twit.

If they don't deal with European contracts give it up because they are to Mickey mouse and incompetent to handle your foreign company

*Edit: Just noticed something, you never made clear, who pointed you in the direction of that particular umbrella? If agency then it really is case of them trying it on, if not then you could just shop around until you find one willing to accommodate you

[NotAllThere]

While some agencies insist on a UK company or a brolly, not all do. AIUI, the fear that agencies have, is that if your non-UK company doesn't pay the tax due, the agency could end up liable.