- 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!
Reply to: Is my recruiter negligent?
Collapse
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.
Logging in...
Previously on "Is my recruiter negligent?"
Collapse
-
Seems odd that if they stated it was inside IR35, you told them you were operating via your Ltd company, then they should have been taking the deductions at source before paying the Ltd company, seems like a lack of communication from them! If the original assingment was stated as inside, and somewhere it stated that the role was to be undertaken via a brolly, then there is no recourse, if they didn't supply the KID, or didn't state that it was via a brolly, then you would have a case to go back and ask them to cover the employment costs. Basically all down to what was originally sold to you in the details.
-
Originally posted by Frances1990 View PostIt's interesting to hear about the pension, but presumably you still have to pay the same employers' NI? I don't mind paying more personal tax tbh, it's the employers' tax I object to because of course there's no benefits.
As for the rest - again the issue is with your agency (and Advertising Standards). Why a contract is subject to PAYE the rate advertised should be PAYE but there is nothing legislated to insist agencies do that so agencies pull tricks to make the job look way better than it actually is.
Leave a comment:
-
They never sent me a key information document and still haven't. Unless the key information document is a breakdown of costs? They sent this after I started (and for the wrong contracted number of days). It's interesting to hear about the pension, but presumably you still have to pay the same employers' NI? I don't mind paying more personal tax tbh, it's the employers' tax I object to because of course there's no benefits. (I know the rate is meant to be uplifted, in this case it hasn't been based on the standard pay for these roles.) Thanks for the advice though, very useful.
Leave a comment:
-
Originally posted by Frances1990 View PostI asked the recruiter about payment in the first instance and told them I was limited. They said this was fine (verbally). I went ltd two years ago not to save tax, but because corporate companies wouldn't employ me without one. (I could not be paid as a self employed person with certain clients.)
I started with the company because they had an urgent start date and agreed to the day rate in writing, with no mention of umbrellas or a breakdown of costs. After I started they told me they needed my umbrella company details to finalise the contract before I could be paid. Presumably I should have been sent breakdowns etc before starting.
2 things I would add:-
Using an umbrella isn't bad if you can afford to put money into a pension - everything above £10 (an hour) except for the umbrella's fee can go into your pension via salary sacrifice.
If you are leaving because of the pay do so quickly...
Leave a comment:
-
Then I’m afraid that you will have to either find an umbrella fast (Clarity is recommended here) or terminate the contract.
I would advise that you make that decision today as any delay will make a poor situation worse.
Leave a comment:
-
I asked the recruiter about payment in the first instance and told them I was limited. They said this was fine (verbally). I went ltd two years ago not to save tax, but because corporate companies wouldn't employ me without one. (I could not be paid as a self employed person with certain clients.)
I started with the company because they had an urgent start date and agreed to the day rate in writing, with no mention of umbrellas or a breakdown of costs. After I started they told me they needed my umbrella company details to finalise the contract before I could be paid. Presumably I should have been sent breakdowns etc before starting.
Leave a comment:
-
Originally posted by Frances1990 View PostI'm a freelancer with my own ltd company and I've never taken a contract inside IR35 before. Most of my work is ad-hoc. I was contracted by a recruiter about a six month, 4 day a week contract inside IR35. I told them I am ltd and work for multiple clients. (True freelance basically).
My accountant said it may still be possible to work ltd but they might make me do an umbrella. The recruiter mentioned nothing up front when I said I was ltd and we agreed a day rate.
I received no additional information until I started the contract when they told me I needed an umbrella.
They sent a bunch of calculations deducting employers' national insurance from the gross rate that was agreed. I've contacted them to say this means the new rate isn't what was agreed and now they seem to be ghosting me... does anyone have any advice for this situation? I feel as thought they falsely advertised the role and did not share the full details about the terms and conditions. (They still haven't sent me anything in writing confirming all of this, aside from suggested umbrella illustrations which take my rate of pay down by £75 a day, before personal tax.)
From what I see everything that has gone wrong is from your side not understanding, researching or asking about an inside IR35 contract. It's absolute contracting 101 an inside gigs gets taxed like a permie and you have to go through a brolly. It really is as simple as that. In it's absolute simplest terms - Inside > Brolly, Outside > LTD. Nothing else to it. Something you've clearly missed throughout the process.
That said we still haven't got to the bottom of how you've started a gig without a brolly in place. The recruiter could be playing a bit lose and fast and got you on site expecting to deal with the paperwork once you've started. Delaying would have hit their commission. You'll have to explain that bit to us better.
You've applied for something which isn't what you do I am afraid and you've been caught out by not understanding this.
The full terms and conditions are not advertised, they are agreed and discussed by two parties that are aware of what is happening once you've engaged and you've been caught out. Absolutely nothing to see here I think. You take it or you don't but bear in mind my point right at the beginning, if the contract, which it will, says 4 days a week 9 to 5, or 24 hours a week or variations of that then that's what you will work. That's not going to fit in well with true multi client freelancing.
Last edited by northernladuk; 12 October 2021, 00:57.
Leave a comment:
-
Originally posted by Frances1990 View PostI was contracted by a recruiter about a six month, 4 day a week contract inside IR35.
Unfortunately, the only real advice I can offer is "take it or leave it". I.e. if you're not willing to accept this daily rate for an inside IR35 contract then you can hand in your notice, but I don't think you're going to get a higher rate out of it. The only way you can avoid paying tax is to do salary sacrifice, i.e. divert most of your day rate into a pension, but that will depend on whether you can afford to take minimum wage for the duration of this contract.
On a side note, having multiple clients is irrelevant for IR35: there's a separate assessment for each role.
Leave a comment:
-
Is my recruiter negligent?
I'm a freelancer with my own ltd company and I've never taken a contract inside IR35 before. Most of my work is ad-hoc. I was contracted by a recruiter about a six month, 4 day a week contract inside IR35. I told them I am ltd and work for multiple clients. (True freelance basically). My accountant said it may still be possible to work ltd but they might make me do an umbrella. The recruiter mentioned nothing up front when I said I was ltd and we agreed a day rate. I received no additional information until I started the contract when they told me I needed an umbrella. They sent a bunch of calculations deducting employers' national insurance from the gross rate that was agreed. I've contacted them to say this means the new rate isn't what was agreed and now they seem to be ghosting me... does anyone have any advice for this situation? I feel as thought they falsely advertised the role and did not share the full details about the terms and conditions. (They still haven't sent me anything in writing confirming all of this, aside from suggested umbrella illustrations which take my rate of pay down by £75 a day, before personal tax.)
Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: