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DaveC
31st January 2012, 10:30
Hi All,

New to the forum, but not new to contracting. Currently looking for a new contract and came across something new from one agency and trying to find out more information.

I was told that a lot of clients are now not accepting contractors that work via a PAYE / Umbrella scheme and are insisting that the contractor has there own LTD company. The reason given saw something to do with a new legislation coming out this year giving anyone working via PAYE similar rights to permanent employees, or something along those lines.

Anyone know what this is..?

Dave

northernladuk
31st January 2012, 13:25
There is the AWR (Agency Working Regulations) you might be on about..

There is a link on the right hand side to it and also if you search the following in google you should get some stuff (and some junk but filter it out)

AWR site:forums.contractoruk.com

Waldorf
2nd February 2012, 00:10
Hi All,

New to the forum, but not new to contracting. Currently looking for a new contract and came across something new from one agency and trying to find out more information.

I was told that a lot of clients are now not accepting contractors that work via a PAYE / Umbrella scheme and are insisting that the contractor has there own LTD company. The reason given saw something to do with a new legislation coming out this year giving anyone working via PAYE similar rights to permanent employees, or something along those lines.

Anyone know what this is..?

Dave

AWR - new legislation mainly targeted at people using umbrella companies. Some agencies seem to be steering their candidates away from using umbrellas because no-one wants to pick up the bill to pay for the extra's.

Take a look at the umbrella forum, it seems a few umbrella's are passing on the extra costs to the contractor - this makes sense, ask yourself, who is going to pay the extra cost, certainly not the umbrella company, the agency nor the end client.

Depend son what you earn but it does not make any sense to be using an umbrella company these days, limited company is the way to go.