Recruitment Agency threatening with IR35

[fexnok]

Hi,

Basically I'm about to send to court an agency because they owe my limited company money, so I received a call from them saying that if I take them to court they will inform revenue about my situation. They say that because I'm paying myself dividends I'm putting my company outside IR35.

I'm the sole director of my IT limited company, how should I take what they say?

Thanks

[cojak]

Tell him to swing, that's bullying and intimidation and it's VERY unlikely that he'll do that.

There is NOTHING illegal about working outside of IR35 provided

• You have had your contract reviewed and it is deemed outside of IR35
• Your working practices put you outside of IR35

Are you a new contractor because that sounds the sort of thing a scum bag agent would try to pull if you were.

Research for IR35 (on the right) to find out more about it, because you wouldn't have to ask this question if you knew.

[fexnok]

Tell him to swing, that's bullying and intimidation and it's VERY unlikely that he'll do that.

There is NOTHING illegal about working outside of IR35 provided

• You have had your contract reviewed and it is deemed outside of IR35
• Your working practices put you outside of IR35

Are you a new contractor because that sounds the sort of thing a scum bag agent would try to pull if you were.

Research for IR35 (on the right) to find out more about it, because you wouldn't have to ask this question if you knew.

Thanks for your reply.

Yeah I just started contracting but I think they're trying to scare me. I'll have a look to the link.

Thanks

[Wanderer]

Basically I'm about to send to court an agency because they owe my limited company money, so I received a call from them saying that if I take them to court they will inform revenue about my situation. They say that because I'm paying myself dividends I'm putting my company outside IR35.

I'm the sole director of my IT limited company, how should I take what they say?

Unbelievable. What was the name of the agency? And how do they know you take dividends anyway? My response would be that I don't take dividends anyway so they can pee off because it's none of their business. I would also report them to the REC if they are a member - that sort of threat is totally unacceptable.


Don't get into an argument with them, just start the court action if you have given them adequate warning to pay up. Whatever you do, make sure you add Interest and Penalties to the amount they owe to teach them that you are not to be messed with.

[fexnok]

Unbelievable. What was the name of the agency? And how do they know you take dividends anyway? My response would be that I don't take dividends anyway so they can pee off because it's none of their business. I would also report them to the REC if they are a member - that sort of threat is totally unacceptable.


Don't get into an argument with them, just start the court action if you have given them adequate warning to pay up. Whatever you do, make sure you add Interest and Penalties to the amount they owe to teach them that you are not to be messed with.

I've never though of that, they actually asked me over the phone if I was taking dividends and I answered.
I can't add interests now because I've already filed the claim I suppose...

Thanks fr your help

[northernladuk]

I am asking this in good faith, not taking the piss...but.. are you REALLY taking them to court or are you just threatening them with it? Have you taken all the steps possible that you normally would as part of dispute resolution or have you just waded in with threats?

Have you tried 'dunning' them, advised them of and applied late penalty charges, got a solictors letter to them and as a final act taken to court?

It sounds a little to me like an off the cuff comment from the agent in response to an empty threat of court to me. If you were serious I think they would take it a little more seriously. Nothing sillier than someone that comes straight out with a 'I will sue' you line. Couldn't make it any more obvious they don't know what they are doing IMO...

Have a word with safe collections who post on here or look at payontime.co.uk

[fexnok]

I am asking this in good faith, not taking the piss...but.. are you REALLY taking them to court or are you just threatening them with it? Have you taken all the steps possible that you normally would as part of dispute resolution or have you just waded in with threats?

Have you tried 'dunning' them, advised them of and applied late penalty charges, got a solictors letter to them and as a final act taken to court?

It sounds a little to me like an off the cuff comment from the agent in response to an empty threat of court to me. If you were serious I think they would take it a little more seriously. Nothing sillier than someone that comes straight out with a 'I will sue' you line. Couldn't make it any more obvious they don't know what they are doing IMO...

Have a word with safe collections who post on here or look at payontime.co.uk

No problem.

Yes, they've received the court order, that's why they called me and "tried" to settle the debt by offering me 50% but then when I said no, they said well if you take us to court then we will report your company with revenue. Not that I'm afraid of being in/out of IR35 regulations, it's just that I feel they're acting unfair. The big fish always want to eat the small one...

[northernladuk]

No problem.

Yes, they've received the court order, that's why they called me and "tried" to settle the debt by offering me 50% but then when I said no, they said well if you take us to court then we will report your company with revenue. Not that I'm afraid of being in/out of IR35 regulations, it's just that I feel they're acting unfair. The big fish always want to eat the small one...

Ah very good. Probably the first time after all the posturing we have had on here that a case has gone this far so I would very much like to know some details of what has happened and what (when it happens) the outcome is. They must feel they have a case if they haven't folded at this late date though.

See if you can trick them in to putting that in writing. I am sure it won't help their case or credibility when that one comes out.

[fexnok]

Ah very good. Probably the first time after all the posturing we have had on here that a case has gone this far so I would very much like to know some details of what has happened and what (when it happens) the outcome is. They must feel they have a case if they haven't folded at this late date though.

See if you can trick them in to putting that in writing. I am sure it won't help their case or credibility when that one comes out.

Thanks for your support. I'll post the details later so anyone could benefit from my experience. Just wanted to know if what they're doing right now (threatening) should be taken further or just ignore them.

[northernladuk]

Thanks for your support. I'll post the details later so anyone could benefit from my experience. Just wanted to know if what they're doing right now (threatening) should be taken further or just ignore them.

What Cojak says. Ignore them, it's a cheap shot and shows they do not really understand how we operate. Just imagine the stink if they did this and it became common knowledge. An agent that is willing to dob all their contractors in to HMRC for being exactly what the agent needs to make money, particularly when it is legal and correct. Hardly going to endear them to client nor contractor.

As I say, I would love to have that one in writing should they ever cross me again in the future