Sub contractor having to pay a payroll company to be paid

[Paul C]

I'am working for a building restoration company as a self employed contractor, we have to pay a payroll company £17.50 per week to receive our wages,the building company insist we have to sign up to this payroll company (both director's are mate) who states they have the following

• Free on going Accountancy, simplifying the end of year self-assessment for contractors (Helping Contractors Earn up to £3,000 per annum)
• Free Personal Accident Insurance Cover - £2m
• Free Public Liability Insurance Cover - £10m
• Free Drivers Negligence - £10m
• CIS Status Verified Directly with HMRC
• Daily Run Payroll
• Free Faster, Same Day Payment – Within 2 hours of receipt of funds
• Daily Text Confirming Payment
• All Tax paid directly to HMRC
• 24/7 Access to secure individual portal (Accessing all historic payslips, timesheets and expenses)
• Quick, simple and painless set up
• Dedicated Account Manager
• Full Back Office Function
• From £18 per week – No extra or hidden costs

We/i think this is a rip off and have no choice ,our weekly pay slips are very basic given us the amount we have earned less tax and payroll fee,no running totals, Gross net taxes paid,,our so called portal has non of this information on it just our names and address (again very basic) , you can add your expenses and that's it!
I have also asked for a copy of my personal liability insurance and got a copy of their liability insurance no mention of personal liabilityl insurance !!
We/i do not get paid that much and £17.50 per week £910.per year is a lot
They payroll company is making a lot of money off people without much money
Does anyone else have this problem or any advice
Thanks

[NotAllThere]

We're not your kind of contractor. However, many of us use umbrella (payroll) companies, so someone may have something useful to say.

[eek]

They payroll company is making a lot of money off people without much money

Thanks

Sadly provided you are receiving at least the (correct for your age) minimum wage from the umbrella company there is nothing you can do.

Whilst we can't help Unite and a number of the unions are working on trying to shut down this type of payment mode. Unite celebrates final victory in employment agency and bogus self-employment battle may be useful for you as it seems to fit all your story well. However, you may not wish to complain to early as it's likely that your employer will just replace you with someone else.

[Wobblyheed]

Self employed but PAYE ??

[Lance]

Self employed but PAYE ??

yeah. It's a builders thing called CIS. I don't fully understand it but it's a method to tax self-employed builders at source. It's their version of IR35. We should be glad that we don't have to deal with this.

As for the OP. £17.50 a week seems a little high, but not ridiculous. £910 a year. One presumes that's after VAT given the nature of the engagement.
£910 a year for basic accoutancy is high, even with the extra insurances, for a single persons payroll and SATR. It's probably not enough incentive to refuse as that will likely mean no job.

[DolanContractorGroup]

Sadly provided you are receiving at least the (correct for your age) minimum wage from the umbrella company there is nothing you can do.

Whilst we can't help Unite and a number of the unions are working on trying to shut down this type of payment mode. Unite celebrates final victory in employment agency and bogus self-employment battle may be useful for you as it seems to fit all your story well. However, you may not wish to complain to early as it's likely that your employer will just replace you with someone else.

Hi

Paul C seems to be a CIS contractor, so self-employed and not paid via employed umbrella. I would assume that he's getting paid under gross status too.

£17.50 seems to be the going CIS payroll fee.


Thanks

Zeeshan

[cojak]

Please read this Forced into contracting? Read this.

[eek]

Hi

Paul C seems to be a CIS contractor, so self-employed and not paid via employed umbrella. I would assume that he's getting paid under gross status too.

£17.50 seems to be the going CIS payroll fee.


Thanks

Zeeshan

It may be the going fee but it doesn't answer the question of whether Paul C actually wishes to be a CIS contractor he might wish to be employed?

[DolanContractorGroup]

It may be the going fee but it doesn't answer the question of whether Paul C actually wishes to be a CIS contractor he might wish to be employed?

Hi eek,

OP didn't give any indication that he had an issue with his employment status.

I think the main issue is having the fee deducted for payroll. Unfortunately, if the contractor doesn't have a payroll arm, then they will outsource this to a payroll provider that can pay CIS subcontractors with a fee.


Kind regards

Zeeshan

[eek]

Hi eek,

OP didn't give any indication that he had an issue with his employment status.

I think the main issue is having the fee deducted for payroll. Unfortunately, if the contractor doesn't have a payroll arm, then they will outsource this to a payroll provider that can pay CIS subcontractors with a fee.


Kind regards

Zeeshan

Is this a business to business transaction or an employment transaction? The viewpoint of union's in the UK (which I agree with) is that if you have no say in how you are paid the amount of money advertised should be the amount you receive - and umbrella fees should be paid by the agency directly.