Reply to: Agency giving me a payslip!

[Contreras]

Actually, the advice from HMRC is not to issue another invoice. There is nothing wrong with you creating one for your own paperwork, as long as it doesn't get issued to the agency.

Elsewhere it says: "The self-billee agrees not to raise sales invoices for the transactions covered by this agreement".

But the point is that unless you specifically agree by signing a self-billing agreement then you must issue VAT invoices as normal whether the agency wants them or not.

[TheFaQQer]

They clearly have a one-size fits all finance process and this is how they process your remittance for their self-bill. The guidance from the HMRC is not to produce an invoice. Check back through your records you should have signed up to self-billing.

Actually, the advice from HMRC is not to issue another invoice. There is nothing wrong with you creating one for your own paperwork, as long as it doesn't get issued to the agency.

[captainham]

If they're using self billing they will ignore your invoice but it's good to send one for your own records. You don't have to if you don't want to.

In fact you do not send an invoice, period. That's the whole point of self-billing, at least if you want to stay within HMRC's own rules on this topic:

HM Revenue & Customs: Self-billing and VAT

By all means create one for your own records but it should not be sent anywhere.

[Andy Hallett]

It sounds like you need to speak to someone at the agency who knows what they are talking about. Matchtech are a mid sized firm with a fair reputation, they also spawned Apprentice winner Ricky Martin

They clearly have a one-size fits all finance process and this is how they process your remittance for their self-bill. The guidance from the HMRC is not to produce an invoice. Check back through your records you should have signed up to self-billing.

[kingcook]

I could send them an invoice, but they would ignore it. They couldn't - or wouldn't - put the invoice number onto the "remittance advice" v- refused point blank.

Ask them what they're going to do if HMRC come knocking on their doors and want to see their company paperwork, i.e. copies of invoices for accounting and/or VAT purposes.

[BolshieBastard]

Epiphone - no worries about being grumpy etc - I'm grateful for the advice.

Thanks all - and yes, Matchtech are, well, Matchtech! Or rather they won't be shortly as they are starting up a new company which they want me to sign across too....

Anyhoo - I will go and talk to the agent again and let you know what happens.

Oh, and no - no deductions taken. If the paperwork and "pay to date" don't matter, then it doesn't matter..... I will simply look at moving agencies at renewal time :-)

And yes, I know how the agent/Ltd company billing is supposed to work which is why I know something is wrong here. Just wanted to clarify I was justified before I go off on one :-)

SueEllen - I will take your advice also.

Many thanks all

I think I'd be more concerned that matchtech are starting up another company and want you to sign up with them!

[WiltsArchitect]

I had an agent that did this. I queried it, but was just told it was the way their systems worked. It's just their way of sending a "remittance advice" slip.

As long as they're not trying to do deductions or anything employer like, I wouldn't worry about it.

Looking at your location, it could be the same company!

Thanks for replying

[VectraMan]

I had an agent that did this. I queried it, but was just told it was the way their systems worked. It's just their way of sending a "remittance advice" slip.

As long as they're not trying to do deductions or anything employer like, I wouldn't worry about it.

[WiltsArchitect]

Epiphone - no worries about being grumpy etc - I'm grateful for the advice.

Thanks all - and yes, Matchtech are, well, Matchtech! Or rather they won't be shortly as they are starting up a new company which they want me to sign across too....

Anyhoo - I will go and talk to the agent again and let you know what happens.

Oh, and no - no deductions taken. If the paperwork and "pay to date" don't matter, then it doesn't matter..... I will simply look at moving agencies at renewal time :-)

And yes, I know how the agent/Ltd company billing is supposed to work which is why I know something is wrong here. Just wanted to clarify I was justified before I go off on one :-)

SueEllen - I will take your advice also.

Many thanks all

[BolshieBastard]

Sounds like they arent properly set up for contractor ltd and are mainly a temping agency who dish out 'payslips' to all and sundry.

But, if they are just sending you a 'payslip' instead of a remittance advice, what's the beef? Are they deducting tax, NI, pension contributions etc or does the 'payslip' just show the total you invoiced for and no deductions?

If there's no deductions, then, it's just a bit of paper called a payslip. If they are deducting tax, NI, pension contributions at source then, you do have an issue.

[Epiphone]

I thought Matchtect sounded familiar, gone through some old records and I did a short gig through them years ago and they were idiots of the highest order then.

[Epiphone]

OK, I'm naturally grumpy so this may sound more harsh than intended.

Your agent is a fool. Take the bull by the horns and TELL them (don't ask) to set you up as a limited company. ASK what corporate structure they've currently got you on. It'll probably be PAYE.

If they're using self billing they will ignore your invoice but it's good to send one for your own records. You don't have to if you don't want to.

Without knowing the ins and outs of their system it's hard to say exactly but it should work something like:

You're on £100 per day
You work 5 days and client signs to confirm
You send the timesheet to agent and they pay 5 days * £500 + VAT if applicable.

That £500 gross figure should be paid into your LTD bank account. If they're deducting anything, anything at all there's a feck up somewhere.

If they're not putting an invoice number on the remittance then there's going to be some other way for you to identify what period the payment is for.

If this isn't your first contract then you know how billing an agency/client works so you should be pushing the agent harder than you are.

Next time you post I want something along the lines of "yes, they put me on PAYE instead of LTD. It's all sorted now and they're paying me the deductions ASAP. My accountant is aware of what's happened and it'll all get sorted out in the accounts".

Sorry if that sounds arsey but time to man up my friend.

Edited to add: forget about IR35 for the time being. Get paid first before deciding how much to give the tax man!

[SueEllen]

If you work as a limited company regardless of whether you have opted-in or opted-out they need to pay you as a limited company.

Talk to the agent and if you get no joy talk to the Department of BIS. (You have to ring them up emailing will NOT work.)

This is not an IR35 issue it has absolutely nothing to do with it.

[WiltsArchitect]

Epiphone, yup, I have spoken with the agent. He couldn't understand why there was a total pay to date, decuctions etc columns on there either. The pay to date is being filled in, although the deductions aren't.

They simply replied that was the way it was. I could send them an invoice, but they would ignore it. They couldn't - or wouldn't - put the invoice number onto the "remittance advice" v- refused point blank.

Yup, self billing as you pointed out.

NorthernLad - yes, I have read the contract, and got it checked professionally (worth every penny, in my book). I am just concerned that receiving a payslip makes me appear to HMRC as a contractor.

I haven't come across this before - I have always had a professional remittance advice, addressed to the Ltd company with my invoice number on it.

Or have I been spoilt in the past?

So, are you saying that it doesn't matter what they send me as a remittance advice so long as the contract and my working practices are outside IR35?

Thanks again both for your time

[Epiphone]

I'm confused as to why you're confused. If Matchtech are aware you're LTD there's obviously been a screw up at their end and they've got you down as PAYE.

Ring them and point out their error them send them an invoice for your time. OK, they might operate self billing which is why they only need a timesheet but an initial invoice helps clear up any ambiguity. You will of course have all your details and bank details on the invoice.

What have Matchtech said when you spoke to your agent?