Woodrow Mercer - IR35 Webinar

[rocktronAMP]

The irony is that I can currently scare any agency with the new S61o and all the notes HMRC are sending out about umbrellas to the extent that some really would insist on a PSC and deemed payments rather than allowing umbrellas to be involved.

Hmmm

Eek, are you saying that some clients and agencies, actually, might prefer engaging contractors through statement of work contracts instead as alternative to the off-payroll private sector rules assessments?

[eek]

Hmmm

Eek, are you saying that some clients and agencies, actually, might prefer engaging contractors through statement of work contracts instead as alternative to the off-payroll private sector rules assessments?

Nope - deemed payments is where the tax is deducted by the agency (who pay it to HMRC on you and your companies behalf) before sending what is left to your PSC. Your PSC should then pay the VAT to HMRC and the rest to you directly.

[Lance]

Nope - deemed payments is where the tax is deducted by the agency (who pay it to HMRC on you and your companies behalf) before sending what is left to your PSC. Your PSC should then pay the VAT to HMRC and the rest to you directly.

I thought that the reason why umbrellas are involved for these engagements is because agencies don't have, or want, the payroll facility?

I do think that umbrellas are going to find post April harder than agencies though. They don't add any value, and at some stage clients are gonna wonder why they don't just run the contractors' payroll alongside their perms.

[eek]

I thought that the reason why umbrellas are involved for these engagements is because agencies don't have, or want, the payroll facility?

I do think that umbrellas are going to find post April harder than agencies though. They don't add any value, and at some stage clients are gonna wonder why they don't just run the contractors' payroll alongside their perms.

Running contracts is far more than just payroll - you have whole sets of other employment issues and hassles that umbrellas keep away from agencies.

Also in some markets - the use of umbrellas gives an agency a significant advantage when advertising roles (and by the time the truth is discovered that the 15% extra pay was a trick, it's too late for the person to leave).