Agency want to change T&C saying I do not have a PSC

[malvolio]

The legislation does apply to us as it boils down to if a company pays for labour via any means other than paye it has to be separately reported to HMRC stating both the name and NI number of the person providing the labour and the details of the company to which the money was paid to.

From memory and I'm on holiday so not hunting through paperwork (while the others are spending money in a quilting shop) it also impacts us if we subcontract work and don't pay via paye

Not quite. Much of the required information is only required if you are paying a Sch D self-employed, partnership or LLP-based worker, not a limited Company. More detail here

But nobody expects an agency to do anything than apply all rules to everyone regardless, do they.

[eek]

Errm no, I've been following a conversation where the agency is trying to insist the contractor sacks his other director since they won't deal with a PSC with more than one.

This looks like this is another case of an agency having hysterics over last year's reporting requirements, legislation that doesn't actually apply to us. But we shouldn't expect the agency to understand their own business now, should we...

The legislation does apply to us as it boils down to if a company pays for labour via any means other than paye it has to be separately reported to HMRC stating both the name and NI number of the person providing the labour and the details of the company to which the money was paid to.

From memory and I'm on holiday so not hunting through paperwork (while the others are spending money in a quilting shop) it also impacts us if we subcontract work and don't pay via paye

[m0n1k3r]

You could point out she doesn't have a contract of employment so is not an employee and watch agent try get his head round that

If the company pays her a salary then she is an employee and she has a right to a written contract within 3 months from starting. Employment status is not contingent upon having a written contract.

[northernladuk]

You could point out she doesn't have a contract of employment so is not an employee and watch agent try get his head round that

[Old Greg]

The easiest way to cut through this may be to advise that your spouse is paid a small slary for Company Sec, Admin, whatever duties, and that as you are the sole fee earner, you are a PSC.

If that's the case of course - in my case my missus does do occasional fee earning work through the Ltd as well.

[gables]

What does the new contract say? Is it possible it could be more favourable being a consultancy rather than a PSC? Does it open the door to you resourcing for some roles as a proper consultancy?

Could be an opportunity here surely?

It does sound like an opportunity, be really interesting to see what the details are? Back of my head says surely it won't be this simple to not be viewed as a 'psc'

[northernladuk]

What does the new contract say? Is it possible it could be more favourable being a consultancy rather than a PSC? Does it open the door to you resourcing for some roles as a proper consultancy?

Could be an opportunity here surely?

[malvolio]

...Is your spouse a director? If so then there's no problem.

Errm no, I've been following a conversation where the agency is trying to insist the contractor sacks his other director since they won't deal with a PSC with more than one.

This looks like this is another case of an agency having hysterics over last year's reporting requirements, legislation that doesn't actually apply to us. But we shouldn't expect the agency to understand their own business now, should we...

[LondonManc]

Ask them for their legal definition of a PSC and where they got it from. As the IPSE person said, we've never seen it so we're fascinated to know what one is!

Is your spouse a director? If so then there's no problem.

[IPSE]

Hi All,
Recently I was filling out some forms for my agency and I must have put somewhere that I have an employee on my limited company. This is a spouse who gets a small salary for carrying out admin work for me.

The agency are asking for more information about this 'employee' as they may need to change my terms and conditions because apparently 'I am not longer a Personal Service Company' but instead i am now a 'Consultancy Company'.

I wondered if anyone has come across anything like this and what they are trying to achieve? It has got me a bit worried!

The agency statement said:
'Said Agency' are currently ensuring that our limited company contractors are on the correct terms and conditions. If you have other employees, who are not listed on the Directors List on Companies House, then your company is classed as a consultancy rather than a personal services company, so you might need to be switched over to a different set of terms, depending on what your other employee does within the company.

It's all a bit hokum I'm afraid, since there's no such legally defined thing as a Personal Service Company - although we all know what it means by common usage. I suspect this could actually work in your favour but until you see (and post) the different Ts&Cs for the "consultancy" then there's not really a lot if useful comment to be made.

[chrisl]

Hi All,
Recently I was filling out some forms for my agency and I must have put somewhere that I have an employee on my limited company. This is a spouse who gets a small salary for carrying out admin work for me.

The agency are asking for more information about this 'employee' as they may need to change my terms and conditions because apparently 'I am not longer a Personal Service Company' but instead i am now a 'Consultancy Company'.

I wondered if anyone has come across anything like this and what they are trying to achieve? It has got me a bit worried!

The agency statement said:
'Said Agency' are currently ensuring that our limited company contractors are on the correct terms and conditions. If you have other employees, who are not listed on the Directors List on Companies House, then your company is classed as a consultancy rather than a personal services company, so you might need to be switched over to a different set of terms, depending on what your other employee does within the company.