Contractor doctor: what is the 'fake contractor' tactic to bypass the agencies?

InTouch Accounting

Dear Contractor Doctor,

I have heard of a tactic used by some shrewd contractors to bypass agents and go direct. This is where you invent a fake contractor to hook an agent who then arranges an interview for you. After getting the name of the contact you then attempt to go direct at an increased rate by cutting out the agency. The agent then has no way to trace the fake contractor, and if they are found out another one can be invented

Have you heard of this and can it work?

[Name supplied]

Yes, I heard about this a few years ago and it does not seem to have taken off.

It's basically turning around the phishing technique used by agencies. i.e. where agents advertise misleading or non-existent jobs in the hope of attracting contractors who might be moving on and can provide them with lead information.

This 'creative sales technique' will obviously upset agents if they find out and contractors could find themselves being black listed in the same way that some contractors will not work with certain agencies.

Another hurdle is that many companies have a policy of not taking on contractors directly, and prefer the cushion of an agency in between.

In business, the sensible long term approach is to build business relationships based on mutual respect and trust. This type of activity might work in the short term, but isn't really a long term tactic.

Ironically, it is something that agents have actually been known to do to each other in the past! Although with not much success since an experienced agent can usually tell if they are speaking to another one.

The time and effort you could expend conducting this type of strategy, not to mention damage to your reputation, probably isn't worth it for the extra few quid you could make on your rate.

A more solid option might be to simply use the time to train yourself to earn that higher rate.

Published: Monday, January 24, 2005

© 2012 All rights reserved. Reproduction in whole or in part without permission is prohibited. Please see our copyright notice. If you want to use any content you have seen on this site then please request our media pack and ask for details of our Content Licencing Service.


Readers Comments...

This article has 1 comment.

Comment on this articleComment on this article

Speech Bubble Added: Tue, 10 Jun 2008

I have used this technique and it works well with IT Consultancies but not at all with large corporates. Still if an agent gets an interview slot for someone imaginary who never turns up they will be more desperate and more flexible on rate.

Leon, Dublin.

Recommended by 0 readers.

Sign in to recommend comments

Comment on this articleComment on this article


  
Bookmark and Share
  
     
  

Latest Site Updates

The tax avoidance arms race is MAD: mitigation, avoidance and disclosure The tax avoidance arms race is MAD: mitigation, avoidance and disclosure

The tax mitigation arms race between HMRC and tax advisors leads to a never-ending cycle of mitigation, avoidance and disclosure, says David Colom.

Does HMRC even know where its ‘better administration of IR35’ target is? Does HMRC even know where its ‘better administration of IR35’ target is?

If contractors agree to trial HMRC’s new IR35 framework for 12 months, how are we going to measure if ‘better administration’ has been achieved?

ContractorCalculator: Contracting news in brief - 18/May/2012 ContractorCalculator: Contracting news in brief - 18/May/2012

News this week includes the latest IR35 insights; P35 advice; contractor demand data; partial financial sector recovery; & HMRC service improvements.

P35 guidance: unsure contractors should answer ‘no’ to service co question, says HMRC P35 guidance: unsure contractors should answer ‘no’ to service co question, says HMRC

Contractors are not legally obliged to answer the P35 question 6, ‘Are you a Service Company?’, and if they’re unsure should answer ‘no’.


  
  

Twitter

  • Will the new Enterprise Research Centre dedicated to SMEs recognise the role of contracting businesses in the economy? http://t.co/ACE31fIm

    4 hours ago

  • HMRC defends it tax gap calculations claiming external estimates are misleading http://t.co/7RWvC7bq via @AccountancyAge

    5 hours ago

  • The tax avoidance arms race is MAD: mitigation, avoidance and disclosure http://t.co/9q1WMPjD

    9 hours ago

  • Does HMRC even know where its ‘better administration of IR35’ target is? http://t.co/L3MuqlFz

    Mon, 21 May 2012

  • IT leads surge in Scottish contract recruitment : Bank of Scotland Report on Jobs http://t.co/QIrLKFGb

    Mon, 21 May 2012

  • How might government's 'secret plan' to link civil service earnings to location affect public sector contractor rates? http://t.co/fJClb0HG

    Sun, 20 May 2012

Follow Us On Twitter


  
     

  
  

Contractor solutions

Contractors Handbook AM Limited IR35 Test
  
Contractor accountants - pricing checklist
  

Contractor solutions

Choice Premier Pay+

Take home up to 85% of your pay. IR35 solution.

Contractors Handbook

The expert guide for UK contractors and freelancers

Parasol Group

Umbrella or Limited? Guidance on best options, and take home pay.

InTouch Accounting

Person to person contractor accountant. Free IR35 review.

Bedouin Group

No more IR35. Retain up to 85% of your earnings.

NA D J Colom Accountants Bedouin Group Contractor Financials NewsNow
  
Elevate

  

The UK's leading contractor site. Independently audited traffic (ABC) – 156,346 monthly unique visitors.