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View Full Version : Forced to use a particular umbrella - is this allowed?



SameOldThing
26th June 2014, 09:31
Hi - I often read these sites, but never felt enraged enough to contribute.... ...until now! :mad

I am a seasoned contractor and have always been happy with the service I have from my umbrella company. I've been with then for 5+ years and don't have many bad things to say about them. I get paid on time and whilst I might disagree when they reject some of my expense claims, at least they have the decency to pick up the phone let me know.

I've recently finished my last assignment and have found work through a different agency. The agency is insisting that I must use one of the umbrella companies on their approved list, without exception. I've challenged them myself without success. The umbrella company has contacted them too - again without success.

Despite my best efforts, I feel resigned to moving to another umbrella company through the insistence of the agency. Has anyone else had this problem? Any ideas why this agency is so attached to using umbrellas on their approved list? Any other advice anyone can offer?

TheFaQQer
26th June 2014, 09:47
Any other advice anyone can offer?

Run your own limited company, switch umbrella, or walk away and find something else.

In the same way that it is up to the contractor who they work with, the agency are perfectly within their rights to limit the number of umbrella companies that they wish to deal with.

I'm not sure why people stick with umbrellas for the long-term, to be honest - even inside IR35, running your own company over five years would have been more profitable; outside IR35 significantly so.

kal
27th June 2014, 00:22
Run your own limited company, switch umbrella, or walk away and find something else.

In the same way that it is up to the contractor who they work with, the agency are perfectly within their rights to limit the number of umbrella companies that they wish to deal with.

I'm not sure why people stick with umbrellas for the long-term, to be honest - even inside IR35, running your own company over five years would have been more profitable; outside IR35 significantly so.

+1 5 years with an umbrella... Any reason why you didn't go Ltd?

SameOldThing
27th June 2014, 11:30
A lot of the assignments are found through agencies. The agencies' contracts with the 'end-client' apparently does not allow me to set up limited company. It might be because of the industry I work in. I work in the rail sector, so I guess the ultimate end client is the tax payer.

I would love to set up a limited company. It makes sense for me commercially, just I struggle to get my agency to agree.

Anyway - situation resolved. I'm doing exactly the same work, for exactly the same client, for exactly the same rate, but through a different agency. I can continue using the same umbrella. Yay!

Thanks for your responses.