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Previously on "Have to make a decision imminently - i.e. PAYE or PSC. Would be grateful for a steer."
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Originally posted by amandakclose View PostThanks for the helpful comments. I had to go PAYE today but at least I still have a job.
Sorry if I wasn't sufficiently clear in my original post. I have worked for the end client for 18 months. I completed a QDOS SDS and was deemed Outside. However my end client disagreed with a number of my answers and overruled me, and this meant they deemed me Inside.
What was particularly frustrating was that it was the Commercial/Legal team that disagreed with my answers. The Operations team, people with whom I work day in day out agreed that my answers were correct. But they advised me that it was not a fight they/we were likely to win. The end client is fairly large with £5bn annual turnover and have made their decision, and my spies in the Commercial team tell me not a single Contractor (one man/woman band) has been allowed to to continue with their PSC. So although I was being told last week by the Ops team that I had a chance, further discussion with their Commercial colleagues put them straight.
Some of my colleagues have the luxury of walking. Sadly I have no savings and had to consider my ability to meet my financial outgoings, particularly as my husband is looking for work.
Hopefully the landscape will change in the future, and my next contract will be deemed Outside.
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Evening everyone
Thanks for the helpful comments. I had to go PAYE today but at least I still have a job. Sorry if I wasn't sufficiently clear in my original post. I have worked for the end client for 18 months. I completed a QDOS SDS and was deemed Outside. However my end client disagreed with a number of my answers and overruled me, and this meant they deemed me Inside.
What was particularly frustrating was that it was the Commercial/Legal team that disagreed with my answers. The Operations team, people with whom I work day in day out agreed that my answers were correct. But they advised me that it was not a fight they/we were likely to win. The end client is fairly large with £5bn annual turnover and have made their decision, and my spies in the Commercial team tell me not a single Contractor (one man/woman band) has been allowed to to continue with their PSC. So although I was being told last week by the Ops team that I had a chance, further discussion with their Commercial colleagues put them straight.
Some of my colleagues have the luxury of walking. Sadly I have no savings and had to consider my ability to meet my financial outgoings, particularly as my husband is looking for work.
Hopefully the landscape will change in the future, and my next contract will be deemed Outside.
Thanks again for the help and advice.
Amanda x
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Originally posted by amandakclose View PostI am afraid I don’t know what my tax code is, or what it would be for PAYE. My tax affairs are basic to say the least. As basic as they can be. [..] My Ltd company pays me £732.33 gross a month in accordance with advice from my online Accountant. The rest I take as dividends.
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Originally posted by LondonManc View Post
You've scared them off again?
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Originally posted by northernladuk View Post
I've a feeling we won't be hearing from the OP again unfortuantely
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Originally posted by LondonManc View PostHow long have you worked at that client for?
Also, what proof do you have that your contract, which you declared to be outside IR35, was actually outside IR35.
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How long have you worked at that client for?
Also, what proof do you have that your contract, which you declared to be outside IR35, was actually outside IR35.
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Originally posted by Pmidas View Post
As you are too late either walk away or do a contract directly with the end client PAYE. You just have to accept the hit on the income you take home and you as everyone else will be paying more tax going forward.
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Originally posted by amandakclose View PostEvening everyone
I have to make a decision imminently (really should have been today) and I have been given until Tuesday to give an answer. I am afraid I find the subject rather confusing (despite how many threads/web pages I read) and would be eternally grateful for some help and advice. I will endeavour to be concise and please let me know if you need more information.
I work for my Ltd company serving an end client via a recruitment agency. I submit a weekly invoice to the recruitment agency.
The end client has ruled all contractors inside IR35 and has offered two options: (a) remain and continue to be paid by the recruitment agency but PAYE, or (b) join the end client PAYE on the books. Many contractors have left this week seeking work elsewhere. Others are holding out for a change of stance and are questioning the legality of the end client’s blanket decision.
Fortunately my position is different and I have other options. The end client accepts I am outside IR35 and agrees that my SDS is accurate. The end client is trying to make an exception for me (as they don’t want me to walk) and if successful I would be allowed to continue working as a PSC. However the decision rests with the Commercial Dept, and to honest it could go either way. To assist in their decision, the recruitment agency has provided details of an ‘IR35 Tax Liability Insurance product’ that I could purchase.
This afternoon the end client proposed another option. While they continue to try and make my PSC arrangement work, would I be interested in going PAYE via the recruitment agency if my day rate was upped by 25%? My current day rate is £700, and therefore it would increase to £875. The recruitment agency has clarified that the £875 figure represents my total cost to the end client, and my actual PAYE day rate would be £676.
Thank you for reading thus far. To cut a long story short I am trying to compare the take home pay between (a) current PSC arrangement, and (b) PAYE based on the £676/875 figures. I have tried in vain to speak to my Accountant (an online firm) but despite several calls there has been available suitable qualified to take my call. Fair enough I shouldn’t have left it so late. But sadly it’s only the last couple of days that information has been forthcoming from the end client.
Now for my silly questions (apologies in advance!).
How do I work out my take home pay based on working 5 days a week, 48 weeks a year (less Bank Hols). I take 10 days holiday in the summer, and 10 days off at Christmas although this includes some Bank Hols. I have experimented with online calculators but the results are always different and I’m not sure whether I am using the correct figures to begin with.
I am afraid I don’t know what my tax code is, or what it would be for PAYE. My tax affairs are basic to say the least. As basic as they can be. I have one contract, no staff, no investments etc. Not sure if this is relevant but I am aged 45 and married with 2 children. My husband is out of work thanks to Covid.
My Ltd company pays me £732.33 gross a month in accordance with advice from my online Accountant. The rest I take as dividends. Every month I withdraw the maximum dividend amount allowed by the Accounting Software and I use it to pay off debts. Don’t ask, it’s a tragic story!
The online Accountant has sensibly closed for the weekend so I thought I might try this forum so I am prepared for Tuesday.
Thanks for any kind soul able to help me, Amanda x.
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I think there is a lot of things wrong here and you end up missing the biggest point but lets try break it down.
Originally posted by amandakclose View Post
I have to make a decision imminently (really should have been today) and I have been given until Tuesday to give an answer. I am afraid I find the subject rather confusing (despite how many threads/web pages I read) and would be eternally grateful for some help and advice. I will endeavour to be concise and please let me know if you need more information.
I work for my Ltd company serving an end client via a recruitment agency. I submit a weekly invoice to the recruitment agency.
It could be the usual thing where I've got something wrong by not reading and understanding something but new legistaltion starts on the 6th so by law you need and SDS and a new contract to back that up.
The end client has ruled all contractors inside IR35 and has offered two options: (a) remain and continue to be paid by the recruitment agency but PAYE, or (b) join the end client PAYE on the books. Many contractors have left this week seeking work elsewhere. Others are holding out for a change of stance and are questioning the legality of the end client’s blanket decision.
All looks pretty straight forward so far. Client says blanket inside yet you are still going to go in on Tuesday. You are inside. Hope you have a big appetite for risk cause you are top of list for HMRC.
Fortunately my position is different and I have other options. The end client accepts I am outside IR35 and agrees that my SDS is accurate.
The end client is trying to make an exception for me (as they don’t want me to walk) and if successful I would be allowed to continue working as a PSC.
However the decision rests with the Commercial Dept, and to honest it could go either way. To assist in their decision, the recruitment agency has provided details of an ‘IR35 Tax Liability Insurance product’ that I could purchase.
This afternoon the end client proposed another option. While they continue to try and make my PSC arrangement work, would I be interested in going PAYE via the recruitment agency if my day rate was upped by 25%? My current day rate is £700, and therefore it would increase to £875. The recruitment agency has clarified that the £875 figure represents my total cost to the end client, and my actual PAYE day rate would be £676.
You know until this is sorted you can't do any work for them on Tuesday until it's all signed don't you?
Thank you for reading thus far. To cut a long story short I am trying to compare the take home pay between (a) current PSC arrangement, and (b) PAYE based on the £676/875 figures. I have tried in vain to speak to my Accountant (an online firm) but despite several calls there has been available suitable qualified to take my call. Fair enough I shouldn’t have left it so late. But sadly it’s only the last couple of days that information has been forthcoming from the end client.
Now for my silly questions (apologies in advance!).
How do I work out my take home pay based on working 5 days a week, 48 weeks a year (less Bank Hols). I take 10 days holiday in the summer, and 10 days off at Christmas although this includes some Bank Hols. I have experimented with online calculators but the results are always different and I’m not sure whether I am using the correct figures to begin with.
Either way. Why are you doing this? You don't have a choice. Take it or walk seems to be your only options now. Depending on how long you have at the client you only real option is to walk i.e. not turn in on Tuesday and that's that.
I am afraid I don’t know what my tax code is, or what it would be for PAYE. My tax affairs are basic to say the least. As basic as they can be. I have one contract, no staff, no investments etc. Not sure if this is relevant but I am aged 45 and married with 2 children. My husband is out of work thanks to Covid.
My Ltd company pays me £732.33 gross a month in accordance with advice from my online Accountant. The rest I take as dividends. Every month I withdraw the maximum dividend amount allowed by the Accounting Software and I use it to pay off debts. Don’t ask, it’s a tragic story!
The online Accountant has sensibly closed for the weekend so I thought I might try this forum so I am prepared for Tuesday.
So what do you think is going to happen on Tuesday? You rock up to work not knowing if you are inside or outside with no agreement to get paid? Absolutely awful position and really poor it's got to this. I assume you've got no contract and no SDS at this point so you simply cannot go back in to work until it's sorted. The fact you think you can do that just smacks of part and parcel and other inside pointers. If you are truely outside you do not go in to a clients without a contract.
You start down the right path talking about IR35 but then just completely forget all about it. What you are doing is accepting you are inside by going PAYE. So what about the retro risk. What about the fact your client is telling HMRC your were inside all along? Why aren't you walking like the sensible lot and instead are staying like the less sensible ones?
Was this entire, very long thread, just about comparing the two incomes? It could have been a two line question if that was the case. I thought you were going to come ask about what your situation is IR35 wise and the massive risk of retro taxation which would include re-accounting your entire time at your client as inside and paying the extra tax, plus potential penalties, plus interest back?
The fact it's got to this when the next working day is the 6th of April appears to be a bit of a screw up.
Do no more work for the client until you are issued with a determination, as they are required to do by law, and a new contract. If it's outside then happy days, if it's inside then you walk. If it's outside because they don't want to leave you and they've pressurised they internal people to an outside decision just to keep you then you walk because it's unsafe.
I hope someone else can come help you instead of my one dimensional diatribe which is often wrong on many points but that's my thoughts.Last edited by northernladuk; 3 April 2021, 01:17.
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Have to make a decision imminently - i.e. PAYE or PSC. Would be grateful for a steer.
Evening everyone
I have to make a decision imminently (really should have been today) and I have been given until Tuesday to give an answer. I am afraid I find the subject rather confusing (despite how many threads/web pages I read) and would be eternally grateful for some help and advice. I will endeavour to be concise and please let me know if you need more information.
I work for my Ltd company serving an end client via a recruitment agency. I submit a weekly invoice to the recruitment agency.
The end client has ruled all contractors inside IR35 and has offered two options: (a) remain and continue to be paid by the recruitment agency but PAYE, or (b) join the end client PAYE on the books. Many contractors have left this week seeking work elsewhere. Others are holding out for a change of stance and are questioning the legality of the end client’s blanket decision.
Fortunately my position is different and I have other options. The end client accepts I am outside IR35 and agrees that my SDS is accurate. The end client is trying to make an exception for me (as they don’t want me to walk) and if successful I would be allowed to continue working as a PSC. However the decision rests with the Commercial Dept, and to honest it could go either way. To assist in their decision, the recruitment agency has provided details of an ‘IR35 Tax Liability Insurance product’ that I could purchase.
This afternoon the end client proposed another option. While they continue to try and make my PSC arrangement work, would I be interested in going PAYE via the recruitment agency if my day rate was upped by 25%? My current day rate is £700, and therefore it would increase to £875. The recruitment agency has clarified that the £875 figure represents my total cost to the end client, and my actual PAYE day rate would be £676.
Thank you for reading thus far. To cut a long story short I am trying to compare the take home pay between (a) current PSC arrangement, and (b) PAYE based on the £676/875 figures. I have tried in vain to speak to my Accountant (an online firm) but despite several calls there has been available suitable qualified to take my call. Fair enough I shouldn’t have left it so late. But sadly it’s only the last couple of days that information has been forthcoming from the end client.
Now for my silly questions (apologies in advance!).
How do I work out my take home pay based on working 5 days a week, 48 weeks a year (less Bank Hols). I take 10 days holiday in the summer, and 10 days off at Christmas although this includes some Bank Hols. I have experimented with online calculators but the results are always different and I’m not sure whether I am using the correct figures to begin with.
I am afraid I don’t know what my tax code is, or what it would be for PAYE. My tax affairs are basic to say the least. As basic as they can be. I have one contract, no staff, no investments etc. Not sure if this is relevant but I am aged 45 and married with 2 children. My husband is out of work thanks to Covid.
My Ltd company pays me £732.33 gross a month in accordance with advice from my online Accountant. The rest I take as dividends. Every month I withdraw the maximum dividend amount allowed by the Accounting Software and I use it to pay off debts. Don’t ask, it’s a tragic story!
The online Accountant has sensibly closed for the weekend so I thought I might try this forum so I am prepared for Tuesday.
Thanks for any kind soul able to help me, Amanda x.
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