Refusal to pay to business account

[northernladuk]

Didn't Darren Upton go to jail for something similar.

But question to the OP... You are comfortable for someone else to hold all your money and you having absolutely no control over it at all? Really? You'd be better giving it to me... And I really mean that lol...

So who is this provider?

[Nhscontractor]

I am comfortable for them to hold it yes. I have absolute faith in them not doing anything untoward with said money. However I really need to get down the point of is it or is it not legal to do it this way and if it is how can my agency refuse to pay?

Also they don't promise some 84% figure.

I'd someone can quote something making me think this process isn't legal then I will ofc 100% name names.

[tractor]

...

I am comfortable for them to hold it yes. I have absolute faith in them not doing anything untoward with said money. However I really need to get down the point of is it or is it not legal to do it this way and if it is how can my agency refuse to pay?

Also they don't promise some 84% figure.

I'd someone can quote something making me think this process isn't legal then I will ofc 100% name names.

AML legislation for a start. VAT legislation for a second, MSC legislation for a third. It is not necessarily legality but the agent's appetite for risk also.

Why is it that people ask for help, are given it from professionals and successful peers alike, where the advice is uniform and consistent and the OP still does not get it?

The agency is required to ensure that the money is paid to the organisation that does the work.

I have to ask why you want to go outside normal process? You have been asked already and you won't provide an answer. This alone makes people think you are trying something dodgy.

Why don't you just bill the agent and have the money paid directly to your company as the agent is stipulating?

[LisaContractorUmbrella]

"Service provider" raise invoices on behalf of the Limited Company direct to Agency
2. Agency pays invoice to Service provider Ltd bank details
3. Funds are then allocated to *my* Limited Company VAM account
4. Company income is split into a wage and company profits.
5. Wage is paid to the Director as an employee of his own Limited Company which is subject to PAYE tax and NI
6. Company income is paid to Director upon request which is subject to corporation tax
7. All tax and national insurance is reserved in Company VAM Account
8. PAYE tax and NI is paid over monthly with Payment submission to HMC
9. Corporation tax is reserved until the end of the company accounting year and paid over upon completion of Corporation Tax return.


This was the explanation the provider gave to me I have subsituted names ofc. I was not under the impression my reading through Msc legislation this broke any rules but if so I would very much appreciate if you could point it out to me

IT'S A MANAGED SERVICE COMPANY!! Sorry to shout but we have all said it - they're not allowed http://www.hmrc.gov.uk/employment-st...nce-july07.pdf

[northernladuk]

Oh dear......

Oh dear oh dear....

[garethevans1986]

+1 to the Oh Dear.

[Nhscontractor]

I must admit I am now feeling the oh dear.

I'm now feeling very out of my depth. Thank you for the replies I have a lot to think about.

[LisaContractorUmbrella]

I must admit I am now feeling the oh dear.

I'm now feeling very out of my depth. Thank you for the replies I have a lot to think about.

Can you let us know who the provider is? Other contractors would appreciate knowing who to avoid

[psychocandy]

It's not umbrella I have a ltd company and will be paid through my ltd.

Essentially the only issue is I want them to pay the provider so they can do all of the accounting bits then they will tell me what I can draw from my company account as my wage

WTF?

[pmeswani]

Putting aside everything that has been said, if the said provider went bust whilst holding your money...... what would you do?