• 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.

Previously on "Query on IR35 / PAYE and Recruitment agency .....Help needed"

Collapse

  • elsergiovolador
    replied
    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.

    Leave a comment:


  • WTFH
    replied
    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:


  • mjcp
    replied
    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:


  • northernladuk
    replied
    When you say secured, did you sign a contract. Has all this happened before you sign or after you signed?

    Leave a comment:


  • NotAllThere
    replied
    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?

Working...
X