Recruiter insisting on umbrella invoicing when sole trader agreed

[Lucybutta38]

Hello,

I'm a freelance producer and I've always invoiced as a sole trader.

I took a 5 day role through a recruitment agency, completed the assignment and was told to invoice the recruiter as a Ltd company or through an umbrella.

Id said from the start that I can only invoice as a sole trader with my UTR number, which was agreed. It's pointless for me to register as a Ltd company as I've only had this assignment this year.

Now they're insisting on the above and ignoring the emails of us agreeing otherwise.

I'm usually permanent in the roles I take, it's just been a terrible year so I've managed to grapple a few freelance gigs here and there.

To set up with an umbrella company, they're deducting about 40% from my 5 days of work. I'm guessing you get that deduction back at the end of the tax year?

Can I suggest me invoicing the company I worked with for those 5 days directly?

 

[Newchodge]

Hello,

I'm a freelance producer and I've always invoiced as a sole trader.

I took a 5 day role through a recruitment agency, completed the assignment and was told to invoice the recruiter as a Ltd company or through an umbrella.

Id said from the start that I can only invoice as a sole trader with my UTR number, which was agreed. It's pointless for me to register as a Ltd company as I've only had this assignment this year.

Now they're insisting on the above and ignoring the emails of us agreeing otherwise.

I'm usually permanent in the roles I take, it's just been a terrible year so I've managed to grapple a few freelance gigs here and there.

To set up with an umbrella company, they're deducting about 40% from my 5 days of work. I'm guessing you get that deduction back at the end of the tax year?

Can I suggest me invoicing the company I worked with for those 5 days directly?

Simply request payment in accordance with the email confirming sole trader. Then sue if they don't pay.

 

[NicoJ]

You should have received a full statement of work from the agency. Read this carefully. The emails mentioning sole trade will, almost certainly, not be legally binding. Agencies don't like sole trade.

To answer the last question, no you can't invoice the end client. You have not been engaged by them.

If you don't have any contradictory paperwork / terms then chase the sole trade angle, otherwise go the umbrella route.

 

[Lucybutta38]

Thank you!

If I have to go with umbrella, I'm guessing the big chunk they take off my rate for the 5 days will come back to me at the end of the financial year?

 

[NicoJ]

Thank you!

If I have to go with umbrella, I'm guessing the big chunk they take off my rate for the 5 days will come back to me at the end of the financial year?

Tax will be an effective payment on account so will be deducted from the overall tax liability at the end of the year (from all your employments and self employment).

NIC will not be refundable neither will any fees charged by the agency.

 

[Lucybutta38]

It just feels completely pointless to go with an umbrella company for a one off week or work. I've never needed to use them before and won't use them again.

 

[NicoJ]

It just feels completely pointless to go with an umbrella company for a one off week or work. I've never needed to use them before and won't use them again.

Hopefully you can get them to pay your invoice but if not, then an umbrella is the only way you're realistically going to get your money.

It may feel pointless but it is just a means to an end.

 

[Spotless911]

Please I also need help regarding unpaid invoice from a client that we did commercial summer student hall cleaning for, we also bout linens and towels because we wasn't able to get any company to hire us linens for this reasons, we was forced to by our own. The client that contracted us, is someone we have being dealing with for a period of time. This client removed us from the WhatsApp group, and continue using our linens almost 50 of them without payments.

 

[Newchodge]

Please I also need help regarding unpaid invoice from a client that we did commercial summer student hall cleaning for, we also bout linens and towels because we wasn't able to get any company to hire us linens for this reasons, we was forced to by our own. The client that contracted us, is someone we have being dealing with for a period of time. This client removed us from the WhatsApp group, and continue using our linens almost 50 of them without payments.

Sue them.

 

[IanSuth]

We were always told we were not allowed to just pay sole traders - we had to deal with a LTD either a PSC or an Umbrella but not a sole trader.

That was REC guidance

 

[Newchodge]

We were always told we were not allowed to just pay sole traders - we had to deal with a LTD either a PSC or an Umbrella but not a sole trader.

That was REC guidance

Is that guidance or legislation? either way if

Id said from the start that I can only invoice as a sole trader with my UTR number, which was agreed.

is true, I don't see how they an move the goalposts after the contract was completed.

 

[NicoJ]

Is that guidance or legislation? either way if

is true, I don't see how they an move the goalposts after the contract was completed.

Guidance. The reason is that its easier for HMRC to assess tax on an agency if the worker is self employed.

As per my posts above, the initial emails can be superceded by later paperwork which the candidate signs. (May or may not have happened here, if it has the initial "agreement" will be difficult to enforce).