Noob here, already fed up with agency and umbrella company

[MattZani]

Hello there

I started working as an IT contractor last December. I got the job via a recruitment agency and I signed up with an umbrella company. Now, after 3 months, I already have enough of many things:

- since I work through recruitment agency, I need my timesheet to be submitted and approved every week. I am dead tired of chasing my manager every single week asking her 2-3 times to have a look at my (online) timesheet so I can get paid on friday

- the recruitment agency takes quite a good margin for doing basically nothing. Really, the guy doesn't even reply to my emails, so why should the agency take £5 for every hour of my work...just because they got me the interview?

- i have to pay the umbrella company too (£20 a week)

Basically, I'm tired of all these additional layers between me and the company I am working for and since my contract is about to get extended for quite a few months, I am thinking of "cutting" off both agency and umbrella.
From my readings, becoming a sole trader seems to be the most viable option.

So, can somebody explain to me how it works? As far as I have understood I have to

1) register as a sole trader
2) send every week/month an invoice to the company for my services (no more timesheets!)
3) keep all the receipts of my expenses
4) once approaching the end of the financial year, find an accountant

Is it that simple or am I missing something?

Thank you very much for your help

MattZani

[malvolio]

year, find an accountant

Is it that simple or am I missing something?


MattZani

Only one thing really - nobody will take you on as a sole trader All that money you're "losing" is what's keeping you in work and getting paid.

Perhaps have another read of the various guides so you understand how it all works?

HTH

[stek]

1) register as a sole trader
2) send every week/month an invoice to the company for my services (no more timesheets!)
3) keep all the receipts of my expenses
4) once approaching the end of the financial year, find an accountant

No way, you won't be on the PSL and you'll have a clause in your contract forbidding you to return to the client for a period of time. Plus if you did manage it it will be you that will be chasing payment from the client, not the agency who pay you whether or not. Believe me chasing up payments is tiresome and you need a fair bit of front to keep on top of it.

Learn to walk before you run.

[DirtyDog]

- since I work through recruitment agency, I need my timesheet to be submitted and approved every week. I am dead tired of chasing my manager every single week asking her 2-3 times to have a look at my (online) timesheet so I can get paid on friday

Your issue is with the client, who should be approving things regularly. Discuss your issue with the client.

- the recruitment agency takes quite a good margin for doing basically nothing. Really, the guy doesn't even reply to my emails, so why should the agency take £5 for every hour of my work...just because they got me the interview?

No, you are paying because they manage the relationship with the client, found the work, did the initial screening, got your CV in front of the client, manage the invoice payments and factor the payments so you don't have to wait until the client pays them.

- i have to pay the umbrella company too (£20 a week)

Well, that was your choice to use an umbrella.

From my readings, becoming a sole trader seems to be the most viable option.

I'd start reading other things, then. Most clients will not deal with a sole trader because of the potential tax liability for them. Read up on it.

1) register as a sole trader

See above

2) send every week/month an invoice to the company for my services (no more timesheets!)

Most clients aren't going to want a weekly invoice to process, you'll be invoicing monthly and then waiting at least 30 days for payment. Of course, this doesn't mean there won't be a timesheet - I'm direct with a client at the moment, but before they pay an invoice, they need someone to check that the amount being invoiced matches the work being done. They do this by me completing a weekly timesheet...

3) keep all the receipts of my expenses

Well, you do that anyway, don't you?

4) once approaching the end of the financial year, find an accountant

Find an accountant at the start before you get into a mess. Make sure they understand the way that you operate and have a good idea of the contracting market and how it works.

Is it that simple or am I missing something?

You're missing a lot.

[LisaContractorUmbrella]

DirtyDog's response is absolutely spot on - have a look here for more info on why sole trader is not really an option Contracting - Why are so few of us sole traders? :: Contractor UK.

Agencies, umbrella companies and accountants all serve a purpose for contractors and wouldn't exist if they didn't - you just need to find the right ones to work with

[psychocandy]

Hello there

I started working as an IT contractor last December. I got the job via a recruitment agency and I signed up with an umbrella company. Now, after 3 months, I already have enough of many things:

- since I work through recruitment agency, I need my timesheet to be submitted and approved every week. I am dead tired of chasing my manager every single week asking her 2-3 times to have a look at my (online) timesheet so I can get paid on friday

- the recruitment agency takes quite a good margin for doing basically nothing. Really, the guy doesn't even reply to my emails, so why should the agency take £5 for every hour of my work...just because they got me the interview?

- i have to pay the umbrella company too (£20 a week)

Basically, I'm tired of all these additional layers between me and the company I am working for and since my contract is about to get extended for quite a few months, I am thinking of "cutting" off both agency and umbrella.
From my readings, becoming a sole trader seems to be the most viable option.

So, can somebody explain to me how it works? As far as I have understood I have to

1) register as a sole trader
2) send every week/month an invoice to the company for my services (no more timesheets!)
3) keep all the receipts of my expenses
4) once approaching the end of the financial year, find an accountant

Is it that simple or am I missing something?

Thank you very much for your help

MattZani

Unfortunately, agency margin is something to put up with. Bit more to than just getting you the gig. You can't just cut them off anyway. Even if client wanted to (which they won't because its less hassle for them and they dont care about you).

1) Probably not. Ltd is the way to do it.
2) Unfortunately, still timesheets will be needed.
3) Bit more to it than that.
4) No. You can't just rock up to accountant in month 11, drop them £30 and expect them to sort a years worth of stuff and end of year return. Its going to cost you about the same as you're paying the umbrella company (around £100 a month). Of course, you don't HAVE to have an accountant you can do it yourself but I look forward to the "I've scrwed up my accounts and now HMRC are sending me nasty letters" thread.

[MattZani]

Thanks for your help guys

To clarify, after all I am ok with working with the umbrella company, because I see the point of paying them. They DO stuff (and they reply to my emails instantly, sometimes they also phone me back to "check on me" i guess..)

I struggle seeing the point of paying the recruitment agency though. Apart from getting me the interview what else are they doing? They don't chase my client for payments, they don't chase my manager when they see it's tuesday afternoon and yet my timesheet has not been approved, they don't even reply to my emails lately...

But, as you said, if I have to live with them, I'd better suck it up ahah

[psychocandy]

Thanks for your help guys

To clarify, after all I am ok with working with the umbrella company, because I see the point of paying them. They DO stuff (and they reply to my emails instantly, sometimes they also phone me back to "check on me" i guess..)

I struggle seeing the point of paying the recruitment agency though. Apart from getting me the interview what else are they doing? They don't chase my client for payments, they don't chase my manager when they see it's tuesday afternoon and yet my timesheet has not been approved, they don't even reply to my emails lately...

But, as you said, if I have to live with them, I'd better suck it up ahah

Confused. So who pays you and whos your contract with? I assumed agency as per normal.

If so, why do they need to chase client for payments? What does it matter to you as long as agency pay you? BTW If they're playing the 'can't pay you because client hasnt paid us' then better check if you're opted in or out.

As for the timesheet thing, its because they don't care. If its an issue and its delaying me getting my invoices paid then I would raise it as an issue with the agent to sort out. In fact, I'd be telling agent that if client can't be arsed to sign timesheet then agent had better deal with the fact that they're going to pay me anyway.

[northernladuk]

Thanks for your help guys

To clarify, after all I am ok with working with the umbrella company, because I see the point of paying them. They DO stuff (and they reply to my emails instantly, sometimes they also phone me back to "check on me" i guess..)

I struggle seeing the point of paying the recruitment agency though. Apart from getting me the interview what else are they doing? They don't chase my client for payments, they don't chase my manager when they see it's tuesday afternoon and yet my timesheet has not been approved, they don't even reply to my emails lately...

But, as you said, if I have to live with them, I'd better suck it up ahah

Maybe instead of sucking it up maybe an attempt to try and understand the basics of how you work and the other parties involved would be a good idea. You failed pretty miserably in your first post and this one fares no better. Contracting is about managing your company/umbrella and relationships, the work in between is incidental.

[MattZani]

Confused. So who pays you and whos your contract with? I assumed agency as per normal.

I submit my timesheet to the recruitment agency and get paid by the umbrella company.