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Employment Agencies and Businesses Regulations

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Ashwin2005
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Posts: 157
Joined: Wed Aug 10, 2005 11:13 am

Employment Agencies and Businesses Regulations

Post by Ashwin2005 » Wed Mar 01, 2006 9:44 am

When contract is signed, they ask to "Opt In" or "Opt Out". Which option is advantage for the contractor?

Smit
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Posts: 375
Joined: Sun Jun 26, 2005 8:23 pm
Location: London

Post by Smit » Wed Mar 01, 2006 10:05 am

Opting out is better as it helps your IR35 case if you are working through a limited/umbrella company. If you don't opt out, you are treated more like an employee than an independent contractor and you will have more rights against the employment business but you these additional rights come at a price i.e. your tax status may be jeopardised.

Ask your employment business for a leaflet explaining the pros and cons of opting out.

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