Agencies retaining PAYE uplift

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ratewhore replied

16 January 2009, 12:34
chalk it up to experience, renegotiate on renewal.
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the guy with the bowtie replied

16 January 2009, 10:48
I think the OP is referring to (usually new) contractors hearing that agents "separate out some of the rate to pay for NI" (if they are PAYE). The obvious next conclusion is that this should be added back if the arrangements are via a Ltd Company. As we all get to know, this is just one of the many ruses used by agents to justify a lower rate the contractor and improve their margins.

In reality, as discussed above, the contractor gets the rate he negotiates from the agency as does the agency from the client.
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Platypus replied

15 January 2009, 20:16
Originally posted by mark.savage@liffe.com View Post

I have a situation where the agency that receives my day rate has decided to retain the uplift I have been receiving over the past two years.

I have been receiving this due to having a Ltd Company and not being through PAYE.

As far as I'm concerned this appears to be a way of agencies increasing their margins in the current economic environment.

The question is, can they do this, and what rights do I have?

If you're saying that the Agency decided to charge the end-client more money for your services than originally, and they didn't tell you and offer to increase your rate accordingly, then that's just too bad. The Agency is just doing its job - making money out of you.

You have to ask for a rate increase to get one. And if you didn't and your contract still says the same "X" amount as it did two years ago, then what makes you think you have any rights to do anything about this? After all, you signed the contract.
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TheFaQQer replied

15 January 2009, 20:08
Originally posted by mark.savage@liffe.com View Post

The question is, can they do this, and what rights do I have?

What does your contract say?
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BolshieBastard replied

15 January 2009, 20:05
Originally posted by mark.savage@liffe.com View Post

I have a situation where the agency that receives my day rate has decided to retain the uplift I have been receiving over the past two years.

I have been receiving this due to having a Ltd Company and not being through PAYE.

As far as I'm concerned this appears to be a way of agencies increasing their margins in the current economic environment.

The question is, can they do this, and what rights do I have?

What on earth are you talking about?
Leave a comment:
mark.savage@liffe.com started a topic Agencies retaining PAYE uplift

15 January 2009, 11:53
Agencies retaining PAYE uplift

I have a situation where the agency that receives my day rate has decided to retain the uplift I have been receiving over the past two years.

I have been receiving this due to having a Ltd Company and not being through PAYE.

As far as I'm concerned this appears to be a way of agencies increasing their margins in the current economic environment.

The question is, can they do this, and what rights do I have?

Last edited by mark.savage@liffe.com; 15 January 2009, 17:30. Reason: no responses
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