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Previously on "Getting paid by 5th April"

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  • heyya99
    replied
    Originally posted by PerfectStorm View Post
    Certainly makes it clear - payment after the 5th (regardless of when worked) will be under the new IR35 rules. Thank you.
    Yes, thank you too.

    Leave a comment:


  • PerfectStorm
    replied
    Originally posted by Lance View Post
    You'll have to wait till 11th March for a policy.


    https://assets.publishing.service.go...egislation.pdf
    Section 18 has the words you're looking for.
    Certainly makes it clear - payment after the 5th (regardless of when worked) will be under the new IR35 rules. Thank you.

    Leave a comment:


  • Lance
    replied
    Originally posted by PerfectStorm View Post
    I've heard it a few times but would welcome evidence of the policy one way or the other
    You'll have to wait till 11th March for a policy.


    https://assets.publishing.service.go...egislation.pdf
    Section 18 has the words you're looking for.

    Leave a comment:


  • PerfectStorm
    replied
    Originally posted by heyya99 View Post
    Where did this 'must be paid before April 5th' idea come from?
    I've heard it a few times but would welcome evidence of the policy one way or the other

    Leave a comment:


  • DolanContractorGroup
    replied
    Originally posted by jamesbrown View Post
    I think I interpret the consequences of the draft legislation differently than you. Until such time as the client provides an SDS, the liability rests with them. 2(10) 61N is amended as follows:

    In other words, the fee payer should make payments as usual until such time as they receive an SDS. You are sort of saying the same thing, but implying that the liability rests with the fee payer until they receive an SDS to hand down. It doesn’t. I concede that the fee payer may be lost in confusion and delay payments, but there is no need.
    I agree with you.

    I interpreted your original post as saying that fee payers could potentially make deemed payments without doing/receiving an SDS which confirms the inside position.

    But yes, that's correct, the liability will stay with the end client until the SDS has been done.


    Kind regards

    Zeeshan

    Leave a comment:


  • heyya99
    replied
    Where did this 'must be paid before April 5th' idea come from?

    Leave a comment:


  • jamesbrown
    replied
    It is also worth noting that any new rules will not take effect until the legislation is enacted and begins to apply, as described in "commencement" (i.e., for payments made on or after 6 April).

    Leave a comment:


  • jamesbrown
    replied
    Originally posted by DolanContractorGroup View Post
    Hi James

    It needs to be remembered that the fee payer deductions can only be made if the end client has given an "inside" determination. The deductions can't be made if the end client hasn't done their job properly.

    This could lead to a rush to make assessments in March, or it could lead to delayed March payments to contractors.

    Thanks


    Zeeshan
    I think I interpret the consequences of the draft legislation differently than you. Until such time as the client provides an SDS, the liability rests with them. 2(10) 61N is amended as follows:

    Unless and until the client gives a status determination statement to the worker (see section 61NA), subsections (3) and (4) have effect as if for any reference to the fee-payer there were substituted a reference to the client; but this is subject to section 61V.
    In other words, the fee payer should make payments as usual until such time as they receive an SDS. You are sort of saying the same thing, but implying that the liability rests with the fee payer until they receive an SDS to hand down. It doesn’t. I concede that the fee payer may be lost in confusion and delay payments, but there is no need.

    Leave a comment:


  • PerfectStorm
    replied
    Current client wants to run the gig up to the end of March, and it takes them a couple of weeks to turn over a timesheet into payment from the agency at the best of times. I don't want to scupper the whole thing, but I'm not sure how we're going to tackle this.

    That said, it'll be their problem if they go into the new FY anyway, and we are (in my estimation) outside of IR35

    Leave a comment:


  • SimonMac
    replied
    I am expecting a slew of agencies refusing to make a payment post 6th April as they too will have no idea what the **** is happening

    Leave a comment:


  • DolanContractorGroup
    replied
    Originally posted by jamesbrown View Post
    But remember it’s the responsibility of the fee payer to apply PAYE correctly on deemed payments post April. In other words, once the payment has gone out the door, it’s a done deal. The problem arises when the fee payer fails to kick the payment out the door before 6 April and *then* takes their responsibility seriously after 6 April, so you end up with a deemed payment when you expected otherwise. Personally, I wouldn’t faff with all this last minute nonsense and would leave a wide berth if the concern is about generating a deemed payment on a contract that was assessed (prior to April) as outside.
    Hi James

    It needs to be remembered that the fee payer deductions can only be made if the end client has given an "inside" determination. The deductions can't be made if the end client hasn't done their job properly.

    This could lead to a rush to make assessments in March, or it could lead to delayed March payments to contractors.

    Thanks


    Zeeshan

    Leave a comment:


  • BR14
    replied
    oh, do give it a rest ffs.

    Leave a comment:


  • jamesbrown
    replied
    But remember it’s the responsibility of the fee payer to apply PAYE correctly on deemed payments post April. In other words, once the payment has gone out the door, it’s a done deal. The problem arises when the fee payer fails to kick the payment out the door before 6 April and *then* takes their responsibility seriously after 6 April, so you end up with a deemed payment when you expected otherwise. Personally, I wouldn’t faff with all this last minute nonsense and would leave a wide berth if the concern is about generating a deemed payment on a contract that was assessed (prior to April) as outside.

    Leave a comment:


  • GhostofTarbera
    started a topic Getting paid by 5th April

    Getting paid by 5th April

    90% of companies / Agents pay via BACS

    4th and 5th April are non processing days

    Meaning last payment date is 3rd of April

    Meaning last file submission date is 1st if April by your Agent

    Agent normally submits initial BACS submission file a week beforehand as BACS does pre validation and gives errors reports / agent then has a week before final submission to amend / cancel / update

    Most contractors will submit final invoice on the 27th and that will have to match online timesheet + timesheet approver might not do till Monday morning

    Processes within agency / BACS will take another few days to generate the file

    I predict 25% will get paid before the 6th April at most


    Sent from my iPhone using Contractor UK Forum

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