Do i have to go through PAYE?

[nurain]

Hi Guys/gals, forgive me for my ignorance but i really dont understand this contracting stuff too much.
Im starting a new contract on 3rd of September and have had the contract come through via Kelly Services. (I didnt apply for the job through an agency to begin with!)

Having read the contract, it says that i must go through PAYE. What exactly does this mean for me? Ive been contracting for 6 months and get to claim lots of benefits through my Umbrella Co. Can i still do this through PAYE? Furthermore, do i HAVE to go through this particular agency?

Thanks in advance
Nurain

[MrRobin]

It sounds like you will be an employee of Kelly Services and are paid through their payroll systems. No need for an umbrella.

[nurain]

It sounds like you will be an employee of Kelly Services and are paid through their payroll systems. No need for an umbrella.

Thanks for the swift reply. Does that mean i can no longer claim expenses (like i do through my umbrella?) What are the benefits/alternative of PAYE?

[Ardesco]

been contracting for 6 months and get to claim lots of benefits through my Umbrella Co. Can i still do this through PAYE?

*sigh*

Here we go again.....

What benefits do you get? Do you mean you get to claim expenses (which you can claim through any umbrella company)?

Do you have recipts for all of the expenses that you claim?

Do you realise that if you don't have receipts and you get investigated by the IR they will deem this as taxible funds that you have not paid tax on and you could also be done for fraud and tax evasion?

Do you realise that you could get 10+ years in jail for for fraud and tax evasion?

[Harrysp]

Doesnt sound like you are contracting more like temping

[Cowboy Bob]

Does that mean i can no longer claim expenses (like i do through my umbrella?)

You can claim any expenses that you have legitimately spent in the course of providing your contracting services - usually mileage (and lunch/hotel if you are staying away overnight).

Note: if you have claimed expenses through your umbrella that you either haven't spent, or don't have receipts for, you will be in for a rough ride should HMRC come calling

[Ardesco]

Thanks for the swift reply. Does that mean i can no longer claim expenses (like i do through my umbrella?) What are the benefits/alternative of PAYE?

You can claim any expenses that Kelly allow. This depends on thier terms and conditions.

However you will have to provide a recipt for any expenses that you do claim, and you always need to keep all recipts to prove to IR that you have incurred the expenses in the event of an investigation.

I belive you can also fill in a P87 to claim back tax on business expenses that you have not claimed throughout the year. So if Kelly won't let you claim a legitimate business expense through them you can just do it on this form instead. You will need to double check this though.

[nurain]

Thanks for the replies. I have kept all my receipts for travel, petrol etc that i have claimed for.
One last question...would it be more beneficial if i started my own ltd company? I dont understand why i have no choice but to go through Kelly Services

[Bluebird]

If you're through Kelly Services then they are a temping agency, you need to check with them their expenses policy, but my guess it they won't reimburse jack.

[nurain]

If you're through Kelly Services then they are a temping agency, you need to check with them their expenses policy, but my guess it they won't reimburse jack.

See, thats the thing. I got the contract directly through the client (Google). Then all of a sudden, Kelly have jumped in and sent me the contract. They said that they manage all of the contracts for Google and that i must use them via PAYE