Getting paid by 5th April

[heyya99]

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.

[PerfectStorm]

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.

[Lance]

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.

[PerfectStorm]

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

[DolanContractorGroup]

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

[heyya99]

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

[jamesbrown]

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).

[jamesbrown]

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.

[PerfectStorm]

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

[SimonMac]

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

[DolanContractorGroup]

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

[BR14]

oh, do give it a rest ffs.

[jamesbrown]

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.

[GhostofTarbera]

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


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