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Feeling cheated by everbody!

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    Feeling cheated by everbody!

    After a long period of unemployment I got a job as an IT Contractor with a large well known company near my home. The rate was low – probably as low as it gets for an IT contractor but I was getting somewhere at last. I was told the first two guys sent by the company lasted a couple of days so I worked real hard and after two weeks contacted the agency. The agency claimed the had been trying to get hold of me all along – ok I had my mobile off to give a good impression but no emails or phone calls at home. They basically forced an umbrella company on me and figured as the would only get a small back hander I would go along with this to keep them sweet as I was threatened with late payments and then went into slow motion mode – forms were not completed for weeks.

    After seven weeks of enquiring when I would be paid the agency finally said that I had been. I wasn’t and I believed the agency was going pop – and I told the company were I was working at that I was prepared to walk out and forget the whole thing. They advertised the job again on the same website but had no takers – you could see the number who applied! I was finally paid for the first two weeks of the eight and the second week as overtime which was greatly reduced by the tax, employers national insurance and employees national insurance. The agency tried to make out I was a trouble maker to the company. After more complaints, I got some more weeks paid from them in this way. Then the umbrella's accounting system went down and you could not even fax them for three weeks! More weeks went unpaid and built up to be paid as two weeks in this way.

    After 5 months the company terminated my contract early – I was not that sorry to be honest even though the agency had won whatever game they were playing. The company told me I had to get paid by the agency then pressured me to send the agency my latest CV in case they needed me again! I refused! The umbrella was also charging me too high a fee and I complained about this and the high insurance and tax rates. Got the fees back but was told the tax and insurance was correct (more or less) .

    I started at the end of February and did not get paid until the beginning of April. I contacted the Inland Revenue during the middle of all of this and to make a tax return for last year. I expressed my concern to them about this erratic behaviour. The first point they made was no tax code on my invoices from the umberalla company. I got this and after more enquiries the Inland Revenue have turned around and told me a) I was making a fuss about nothing about what was going on with these companies and b) As I was not paid until April – those first eight weeks don’t count for last years tax year – when I didn’t work or even get any social security payments! The weeks they were paid for are on the invoice.

    Is this correct procedure for the Inland Revenue to take this view? My other fear is that the weeks paid as overtime will remain as such and will not be considered normal worked weeks. I think we are talking about a loss of at least 1/6 my income from this factor alone. Not got the final invoices yet to be sure - it varies a lot! Believe it or not I always considered the Inland Revenue to be fair and honest.

    If I had not complained maybe I still would have a job but then again I could have had one normal week paid to me and all the rest of the year paid as overtime!

    Have I been stuffed?
    Last edited by Feeling Cheated; 27 August 2005, 19:08.

    #2
    Oh dear you haven´t had much luck.

    Yes everything has been done badly, but the IR are correct, not paying bills is not a matter for the IR. Only if the agency wasn´t paying VAT etc. now that would interest them. Also the IR doesn´t tax what you don´t earn so if no cash no tax.

    Now in the future, you need to go through a fairly standard procedure to get your invoices paid. Firstly send an invoice after the end of a month. If pay hasn´t been forthcoming by the end of that month send them a reminder with a 7 day deadline. If this doesn´t work you send a final demand, threatening legal action, this final action will in effect would cause bankruptcy, so companies always pay, at the latest at this stage.

    There is actually no need to walk off the site as the pressure of "bankruptcy" is quite sufficient for an agency to pay in a reasonable time. Only when you are forced into legal action is then the time to terminate the contract, and walk.
    I'm alright Jack

    Comment


      #3
      Read the DTI web site for the behaviour of employment agencies act. See if you feel that they have BROKEN THE LAW. If they have (and I think you might have a case) then report the agent to the DTI citing the Brollie.
      I am not qualified to give the above advice!

      The original point and click interface by
      Smith and Wesson.

      Step back, have a think and adjust my own own attitude from time to time

      Comment


        #4
        Feeling Cheated, can you name and shame the agency and brolly?
        Autom...Sprow...Canna...Tik banna...Sandwol...But no sera smee

        Comment


          #5
          Not sure I want to name and shame just yet as I have not got my final invoice or P45! Not easy to bring legal action against your employer if you ever want a job again.

          The money has now been paid – the Inland Revenue says that because I was not paid in that tax year then they will not consider a tax refund and will count it towards next year. This was paid as if it was overtime by the brolley. If the Inland Revenue are removing the time period then I assume they will also count it as overtime when next year.

          I found this regulation but I am not sure that I have paid by IR35 regulations or if it is some other system. I have a tax code but suspect it is an emergency number. Does this sound if I could appeal on this regulation the invoices show the date when I earned the money?

          Under ESM3260 – Particular issues: avoidance of double taxation, Paragraph 13 Schedule 12 Finance Act 2000/Section 58 ITEPA 2003, Regulation 6(3) SI 2000 No. 727 it states on the IR web site that “The legislation does not require the intermediary to pay a salary at any time. What it does is to require a calculation of tax and NICs to be made, based upon a deemed payment, and the intermediary has to account to the Revenue for the tax and NICs due.” The idea is that you have to pay tax for work in that tax year and not move it to another period when that would be advantageous if tyou are under IR35.

          My mother found out at the remaining tax official at my local office that you can claim back overpaid tax one month after leaving the company? In the letter they sent me they rejected this idea, I have to wait until the next tax year is over to make a claim. They have confirmed that the brolley has paid the tax. My tax office has recently closed down and it is being done by some other office at the other end of the country.

          The other point is that much of the loss by being paid as if it was overtime is in the form of Employers and Employee National Insurance. Is there way to get this back at all? I suspect having a well paid job would help here!

          Anybody with tax knowledge who can kindly advise me.
          Last edited by Feeling Cheated; 30 August 2005, 11:48.

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