Agency giving me a payslip!

**Epiphone** · 22 April 2013, 12:21

Need more info. Do you currently have a LTD? Is Matchtech setting this up for you and acting as your accountant?

Is this your first contract?

**WiltsArchitect** · 22 April 2013, 12:30

Hi Epiphone and thanks for answering.

Yup, I have a Ltd - had one for a couple of years. Set up by my accountant.

Nope, not my first contract - second one this time around (was a contractor for about 5 years before the banks got the runs. so to speak!!). First one was 8 months - all fine, paid on invoice.

Matchtech are most certainly not my accountant - an agency acting as your accountant? Is that a nightmare waiting to happen?

I mean, we all trust agencies to tell us the truth, now don't we?

The contract was checked out by a third party - as above.

Any help/pointers gratefully received

**northernladuk** · 22 April 2013, 12:34

Firstly your working practices at your client dictates your IR35 status backed up by your contract terms. What your agent does shouldn't matter (depending on the outcome of course)....

Not wanting to be rude but have you actually spoken to your agent to discuss this and understand why they are doing this? Surely this would be the first port of call well before asking us generic questions we have no hope of answering?

You have read your contract front to back including any other supporting documentation? Is there any hint about your situation?

**Epiphone** · 22 April 2013, 12:34

I'm confused as to why you're confused. If Matchtech are aware you're LTD there's obviously been a screw up at their end and they've got you down as PAYE.

Ring them and point out their error them send them an invoice for your time. OK, they might operate self billing which is why they only need a timesheet but an initial invoice helps clear up any ambiguity. You will of course have all your details and bank details on the invoice.

What have Matchtech said when you spoke to your agent?

**WiltsArchitect** · 22 April 2013, 12:54

Epiphone, yup, I have spoken with the agent. He couldn't understand why there was a total pay to date, decuctions etc columns on there either. The pay to date is being filled in, although the deductions aren't.

They simply replied that was the way it was. I could send them an invoice, but they would ignore it. They couldn't - or wouldn't - put the invoice number onto the "remittance advice" v- refused point blank.

Yup, self billing as you pointed out.

NorthernLad - yes, I have read the contract, and got it checked professionally (worth every penny, in my book). I am just concerned that receiving a payslip makes me appear to HMRC as a contractor.

I haven't come across this before - I have always had a professional remittance advice, addressed to the Ltd company with my invoice number on it.

Or have I been spoilt in the past?

So, are you saying that it doesn't matter what they send me as a remittance advice so long as the contract and my working practices are outside IR35?

Thanks again both for your time

**SueEllen** · 22 April 2013, 13:04

If you work as a limited company regardless of whether you have opted-in or opted-out they need to pay you as a limited company.

Talk to the agent and if you get no joy talk to the Department of BIS. (You have to ring them up emailing will NOT work.)

This is not an IR35 issue it has absolutely nothing to do with it.

**Epiphone** · 22 April 2013, 13:04

OK, I'm naturally grumpy so this may sound more harsh than intended.

Your agent is a fool. Take the bull by the horns and TELL them (don't ask) to set you up as a limited company. ASK what corporate structure they've currently got you on. It'll probably be PAYE.

If they're using self billing they will ignore your invoice but it's good to send one for your own records. You don't have to if you don't want to.

Without knowing the ins and outs of their system it's hard to say exactly but it should work something like:

You're on £100 per day
You work 5 days and client signs to confirm
You send the timesheet to agent and they pay 5 days * £500 + VAT if applicable.

That £500 gross figure should be paid into your LTD bank account. If they're deducting anything, anything at all there's a feck up somewhere.

If they're not putting an invoice number on the remittance then there's going to be some other way for you to identify what period the payment is for.

If this isn't your first contract then you know how billing an agency/client works so you should be pushing the agent harder than you are.

Next time you post I want something along the lines of "yes, they put me on PAYE instead of LTD. It's all sorted now and they're paying me the deductions ASAP. My accountant is aware of what's happened and it'll all get sorted out in the accounts".

Sorry if that sounds arsey but time to man up my friend.

Edited to add: forget about IR35 for the time being. Get paid first before deciding how much to give the tax man!

**Epiphone** · 22 April 2013, 13:07

I thought Matchtect sounded familiar, gone through some old records and I did a short gig through them years ago and they were idiots of the highest order then.

**BolshieBastard** · 22 April 2013, 13:14

Sounds like they arent properly set up for contractor ltd and are mainly a temping agency who dish out 'payslips' to all and sundry.

But, if they are just sending you a 'payslip' instead of a remittance advice, what's the beef? Are they deducting tax, NI, pension contributions etc or does the 'payslip' just show the total you invoiced for and no deductions?

If there's no deductions, then, it's just a bit of paper called a payslip. If they are deducting tax, NI, pension contributions at source then, you do have an issue.

Agency giving me a payslip!