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Hi,

 

Working in the creative industry, I recently decided to become a freelancer using an umbrella company.

 

I have been offered a one month assignment by a recruitment agency. However they require me to sign a conduct regulations 2003 opt out form

 

Can anyone explain what this is? Not sure if it´s just some bureaucracy or something I truly should worry about?

 

Advice is very welcome!

 

Thanks,

Mia

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  • 1 month later...

Basically, this concerns your employment status.

 

If you do not opt out of the Regulations, you are sending a message to HMRC that you are controlled by the client and, therefore, should be on the payroll of the client with PAYE and NI being deducted from your income.

 

There are some disadvantages from opting out:-

 

- agency is required to pay workers covered by the Regulations. You lose this protection if you opt out;

- terms with agency must be agreed before the consultant (i.e. you) get introduced to the client;

- agency could place restrictive covenants upon you such as from using another agency.

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