Agency Workers Regulations (1 October 2011) – A Good time to consider going Limited
The new Agency Workers Regulations (AWR) comes into effect on 1 October 2011. Contractors working through an Umbrella Company with contracts exceeding 12 weeks will be affected by AWR.
AWR will create a heavy burden of administration through the supply chain for Umbrella Companies, Recruiters and the End Clients.
In order to avoid the administration burden and additional cost of providing the information of the pay levels and benefits of their employees to Umbrella Companies and Agencies the End Clients may look to reduce or cut contracts to less than 12 weeks for contractors working through an Umbrella Company and favour taking on contractors who run their own Ltd Company and fall outside IR35. Contractors who are genuinely in business and are outside IR35 will not be subject to AWR.
If you are working through an Umbrella Company this may be a good time to think about setting up a Limited Company. If you would like to know more about AWR and how it will affect you or want to set-up a Limited Company please call us on 0800 8404014 and ask to speak to one of our Partners.
You can find full guidance on AWR at http://www.bis.gov.uk/assets/biscore/employment-matters/docs/a/11-949-agency-workers-regulations-guidance.pdf