It's happening. Companies are going crazy and don't want to be on the hook for fines even if they are above the board with everything and HMRC still could say they could have taken someone inside IR35 and the arrangement is fake (according to their own guidance).
Everything is negotiable and you should read your contract carefully. Does it say anything about this?
If you go from being outside to inside, you transform from a business into a disguised employee. If this is in private sector then such transition could raise eyebrows and potentially trigger an investigation, as until next year you are still on the hook, not the client.
- 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!
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 "Query on IR35 / PAYE and Recruitment agency .....Help needed"
Collapse
-
OK, can you tell us:
Was £50 the figure going to your LTD, before CT, NI, and tax?
Is £40 the figure going into your personal bank account after NI & tax?
If so, bite their hand off for it.
Leave a comment:
-
Broadly...
Agency advertise role to "contractor" types. Lists role with "contractor" type remuneration (you know, a gross figure that you wont actually take home, because your PSC pays CT, NI, ENI etc etc etc).
But to be IR35 compliant* end client and agent require you to use a brolly of some description. Agent thinks: "I can have that brolly fee for myself" and sets up a payroll function.
Net result is you get an employment contract with a daily / hourly figure well below the one advertised. They will have taken out 12.7% (or more) to accrue for holiday pay, 0.5% for App levy, employer's NI (but it will be listed as something else if you ask why), pension? etc.
I have seen one where ~500 per day ended up at ~400 per day on the employment contract. Net figures in the bank would have been very similar to a brolly arrangement, so no real issues in real terms.
But... arguably, its a bait and switch that should be listed as the real rate in the 1st place or simply as £XX(X)k p.a. PAYE - would avoid exactly this discussion!
M
*Again, broadly, we know you can be compliant through your own PSC, but the end clients and agencies refuse to entertain the idea...
Leave a comment:
-
When you say secured, did you sign a contract. Has all this happened before you sign or after you signed?
Leave a comment:
-
Talk to the agency and ask what that extra £10 you're not getting covers.
Q1. No. You can always refuse. Have you signed any contract yet?
Q2. Everything's negotiable
Leave a comment:
-
Query on IR35 / PAYE and Recruitment agency .....Help needed
Hope someone might be able to help with the following question. Successful secure a contract job for 12 months which was initially suppose to be paid at a hourly rate of £50. Now the recruitment agency has informed me the company concerned want to be IR35 compliant for the future, and I will now have to do the job through PAYE of the recruitment agency, and as a result I will be paid hourly rate £40.00
Q1 Can an agency force potential contractor to do this?
Q2 If you are force to do PAYE, can you ask / negotiate how much the agency are make off you?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: