Personal bank account?

[EchoSierra]

It was made very clear to me that there was no way my agency would pay into my personal bank account instead of a business bank account. Payments would have to wait until the business bank account was set up.

[Bengal]

Surely the contract is what counts here, not how you've been paid? It seems a bit of a leap to say that just because the money has gone into your personal account that you were in an employment relationship.

Not trying to be rude mate but you are missing the point. Its not what you see is right its how HMRC will look at it. As far as it will be concerned the payment was made to you personally and therefore there is an implied contract in pkace. The fact that there is a contract between your company and the agency will be ignored (and HMRC might assume that its just a sham in anycase).

Now, if you then pay the money to the company account, HMRC will not give a monkey about it. What they will look at is the tax position at the point that the agency made the payment and not what you then did with the money.

Also, under the agency tax legislation, an agency cannot pay an individual without operting PAYE and NIC on the payment. If they make the payment to you and don't operate PAYE and HMRC carry out a review and discover this HMRC will sting the agency for the PAYE/NIC and also interest and penalties. This is why contractors provide services via their own companies which gets round the need for the agency to operate PAYE.

[SueEllen]

Ask for cash

He will be lucky to get a cheque!

(Which is actually an option. However credit check the company cos it may bounce.)

[Bengal]

Regardless of whether the payment is made in cash, by cheque or BACS, the tax rules say that the agency has to opeerate PAYE on the payment if made to an individual.

[tino]

Don't do it - invoice ALWAYS from the company. You're supposed to be a business - you need to start acting like it.

*sits back, puts feet up and lights fag*

[MikeC1408]

HSBC opened my account and gave me the account number in a 30 minute meeting.

I'd get yourself down the bank now (if you have all your documentation with you)