Certification of payroll

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

AnthonyQuinn replied

15 April 2021, 15:17
Thanks a lot chaps. Some good inputs here.
Leave a comment:
eek replied

13 April 2021, 08:55
I think the argument goes that because a single person company cannot be trusted to pay the appropriate tax someone else should do it for them.

the issue is that there is zero reason for a contractor to trust an umbrella company as their membership associations see workers as a profit Centre / product rather than their customer
Leave a comment:
jamesbrown replied

12 April 2021, 20:57
Unless you're earning 20k or being massively ripped off, it isn't going to be 6%.

Practically speaking, the liability falls on the supply chain if IR35 isn't operated properly and, while it's theoretically possible that the Fee Payer could operate payroll and pay the deemed payment to YourCo, it's unlikely that they would do this (because they and the client then need to care about IR35 and all the faff that goes with it). Ultimately, it's a no-brainer to ban PSCs and require that you use an umbrella.

So, practically speaking, it's a non-starter, even if theoretically possible.

Note that the Fee Payer is required by law to operate a deemed payment in the event of an inside determination, so they can't just pay YourCo gross.

Also note that the legislation was clarified late in the day to ensure that umbrella companies do not need to be paid net of tax (in case that is the reason for your question, i.e., why an umbrella company and not MyCo? - not all intermediaries are equal in that sense). In any case, most clients will opt to ban PSCs and mandate umbrellas and thereby take IR35 out of the equation.
Leave a comment:
eek replied

12 April 2021, 20:35
Originally posted by AnthonyQuinn View Post

Sorry chaps but not sure you can help with this. I suppose an umbrella company provides some certificate to the agency / end client that they are paying the end contractor through payroll? I ask because I could run a payroll in my company and pay myself fully through PAYE? Not sure why we should pay 6% fees? Any thoughts?

6% fees? It should be a small fixed amount (£25 a week / £100 a month).

What I will say is that IR35 means you can't do it yourself...

Last edited by eek; 12 April 2021, 20:41.
Leave a comment:
AnthonyQuinn started a topic Certification of payroll

12 April 2021, 20:20
Certification of payroll

Sorry chaps but not sure you can help with this. I suppose an umbrella company provides some certificate to the agency / end client that they are paying the end contractor through payroll? I ask because I could run a payroll in my company and pay myself fully through PAYE? Not sure why we should pay 6% fees? Any thoughts?
Tags: None