With all the hype in regards to the new Agency Workers Regulations, AWR, it is difficult to tell if this legislation works in favour of the agency worker or against their best interests. On the surface it sounds like a good thing, but is it really? There are both pros and cons to AWR and it is up to individuals to determine if it is right for them or do they need to find a way to circumvent this legislation. Thankfully, there are websites such as nixonwilliams.com that have ample information to help contract workers make well informed decisions.
If you are found to be within the scope of AWR there are certain things you should be aware of. On the pro side, you will be afforded many of the same rights as permanent employees after 12 weeks of continual hire by the same end client, the hirer. Also, workers will be afforded post maternity leave to attend appointments with doctors without being penalised. You will have the same working conditions in most cases and an opportunity to access the same job openings as they are posted from the very first day.
However, there is another aspect of being under the guidelines of AWR that could be counted toward the cons. For example, agencies necessarily need to hold back a certain amount of money to be used when their workers are ‘out of contract’ and full taxes need to be paid such as the NI tax. Being caught up in both AWR and IR35 is not always to the advantage of the worker so now many people are seeking the counsel of accountancies such as Nixon Williams.
If filing to be a limited company would allow contract workers to bring home more money, a certified accountant can help file for that status and also with bookkeeping throughout the year so that the proper amount of taxes are paid. There are choices available and if a contractor or freelancer is better served by operating as a limited company, Nixon Williams can help make that happen.