Decisions, Decisions....

Ahead of the Budget and the legislation being published in its final draft today, there is a lot for Agencies and Umbrella's to consider ...

We have met with a great deal of agencies since 5th January and it is surprising to learn that the majority of them had negative feedback about their current providers on a number of issues, the main one being that at many meetings there was a lack of detailed knowledge of how the proposed legislation would affect them and how they could be assisted together with lack of service.

There has already been rumours of two companies folding ahead of 6th April, and whilst there will be many rumours as to why that is, the phrase ’Transfer of Debt’ would be top of any list!  No matter what happens this afternoon, there is only one reason that companies will close down or cease trading from one arm of the business, and that is due to a potential liability (creative expenses for example!) accrued that could be personally moved to the director’s post April.  

There will be a few more that will come out of the woodwork I am sure…

The option of utilising your current umbrella could remain if the "personal" remains in the "personal service" part of legislation today but if it is removed as rumoured, then what will you do?  Have you seen Counsel's Opinion?  If not, why not?  You are potentially brought into the firing line if you go down this route post April.  Sign an NDA and read through the opinion yourselves given the transfer of debt risk. 

The Section 337 route doesn't seem to have many agencies interested given the way it will be managed in-house and the difficulty in managing this process.

Legal Expense cover for self employed models are making their way around the sector, and whilst Impact are able to offer this insurance I am firmly of the opinion that if you have carried out your SCD tests correctly, there is no requirement for any insurance.

It seems that a level playing has been introduced into the sector and agencies are using the introduction of the new legislation to consider their PSL and deal with those intermediaries that they trust moving forward.  

If you have found yourselves chasing your Umbrella for details over the last few months or information provided has been incorrect, then please give Impact a call for further details where we will be pleased to provide you with advice on where we are up to in the sector.

We shall be advising all clients in detail of the changes later today but should you wish to give us a call, please feel free to call my mobile.

Gail - 07496 570775.