Agency overpaying me by 20%

As the title really. Started with a company. It’s okay there. They leave me alone. Not perfect but okay. When I registered with agency I said I was Ltd but NOT VAT registered.

Got first pay on Friday… Was like wow this job is brilliant. Paid loads more than expected. I’ve worked out it’s 20% over what I should get. So unless they are really generous they have decided to pay me VAT which I’m not entitled too.

Now first reaction was to say nothing - but don’t want a vat investigation or being charged with vat fraud. So I’ll call agency and pay it back. However do I need to contact hmrc and inform them? I want to avoid the hassle.

I would have thought your payment would show the vat element as a separate item…like £400 + £80 vat =£480.

If its just listed as, for instance £480 then keep your trap shut. They cant come after you for vat if youre not registered and you havent collected it.
Good luck.

sammym:
As the title really. Started with a company. It’s okay there. They leave me alone. Not perfect but okay. When I registered with agency I said I was Ltd but NOT VAT registered.

Got first pay on Friday… Was like wow this job is brilliant. Paid loads more than expected. I’ve worked out it’s 20% over what I should get. So unless they are really generous they have decided to pay me VAT which I’m not entitled too.

Now first reaction was to say nothing - but don’t want a vat investigation or being charged with vat fraud. So I’ll call agency and pay it back. However do I need to contact hmrc and inform them? I want to avoid the hassle.

Simply overpaid money.They can t claim back this VAt to self .But for come simply money.In you not VAT reg that you don t need pay back nothing .

cheekymonkey:
I would have thought your payment would show the vat element as a separate item…like £400 + £80 vat =£480.

If its just listed as, for instance £480 then keep your trap shut. They cant come after you for vat if youre not registered and you havent collected it.
Good luck.

Well that’s the funny thing… which I’m not comfortable with. This company (first big blue chip) and the agency don’t have me write invoices. They send my timesheet (which I don’t keep) to agency who pay me. And then the money comes into my business account.

So I don’t invoice… Well I do write and invoice for my accounts but this is just for me. So the agency deal with it all. I just turn up to work and get paid each friday. I don’t get a copy of anything like a breakdown of payment. The money just comes into my account.

And we are talking about £150 a week. if they keep going like this. If I do decide to keep it, I’ll put it in a savings account until end of tax year so I can pay it back pronto. But I do like a simple life and don’t want to go to court for this.

Your honesty does you great credit Sam. The best way forward is to keep it stashed away just in case.
I always think…how many times do people rush to pay me money they owe me…never! I usually have to hassle for it.

sammym:

cheekymonkey:
I would have thought your payment would show the vat element as a separate item…like £400 + £80 vat =£480.

If its just listed as, for instance £480 then keep your trap shut. They cant come after you for vat if youre not registered and you havent collected it.
Good luck.

Well that’s the funny thing… which I’m not comfortable with. This company (first big blue chip) and the agency don’t have me write invoices. They send my timesheet (which I don’t keep) to agency who pay me. And then the money comes into my business account.

So I don’t invoice… Well I do write and invoice for my accounts but this is just for me. So the agency deal with it all. I just turn up to work and get paid each friday. I don’t get a copy of anything like a breakdown of payment. The money just comes into my account.

And we are talking about £150 a week. if they keep going like this. If I do decide to keep it, I’ll put it in a savings account until end of tax year so I can pay it back pronto. But I do like a simple life and don’t want to go to court for this.

I’m no expert in accountancy or tax laws, but the bit I’ve highlighted is ringing alarm bells. Effectively you have no idea if they’re paying you correctly regarding hourly rate, overtime rate, etc. Once you get that sorted, everything else should be easier to figure out.

you need this sorted quick, cos if they are overpaying you they will want it back at some point. I don’t get a breakdown of pay but I do know exactly what I should get payed every week and if wrong it is sorted asap. you need to know your hourly rates if you don’t how will you know when they under pay you. the agency also need invoices from you for their accounts. my agency will not pay me anything without an invoice. they have to keep their records straight or how do they show what they are paying out if asked.

If what you say is true mate you’ve turned the tables,.a driver ripping off an agency instead of the usual vice versa.
Say nowt and walk around with a smile on your face.
It’s an agency ffs, an organisation synonimous with parasites. :bulb:
Who cares?

Captain Caveman 76:

sammym:

cheekymonkey:
I would have thought your payment would show the vat element as a separate item…like £400 + £80 vat =£480.

If its just listed as, for instance £480 then keep your trap shut. They cant come after you for vat if youre not registered and you havent collected it.
Good luck.

Well that’s the funny thing… which I’m not comfortable with. This company (first big blue chip) and the agency don’t have me write invoices. They send my timesheet (which I don’t keep) to agency who pay me. And then the money comes into my business account.

So I don’t invoice… Well I do write and invoice for my accounts but this is just for me. So the agency deal with it all. I just turn up to work and get paid each friday. I don’t get a copy of anything like a breakdown of payment. The money just comes into my account.

And we are talking about £150 a week. if they keep going like this. If I do decide to keep it, I’ll put it in a savings account until end of tax year so I can pay it back pronto. But I do like a simple life and don’t want to go to court for this.

I’m no expert in accountancy or tax laws, but the bit I’ve highlighted is ringing alarm bells. Effectively you have no idea if they’re paying you correctly regarding hourly rate, overtime rate, etc. Once you get that sorted, everything else should be easier to figure out.

The reason I know it’s 20% is because of this.

I take a photo of my timesheet. I then calculate the hours I’ve worked minus breaks and know my total billable hours. So I know it’s wrong. I’d know if I were underpaid as well as overpaid. I’ve had some bad experiences with agencies so am very over the top about this and even keep my printouts where I jot down time worked on the back.

I’ve used this method to chase up amounts as low as £8 with an agency before.

as above speak to them asap

Sort it out…

There will be high interest penalties if you have to give it back. Just saving what you’ve accrued won’t cover it and you’ll be out of pocket.

malcob:
you need this sorted quick, cos if they are overpaying you they will want it back at some point. I don’t get a breakdown of pay but I do know exactly what I should get payed every week and if wrong it is sorted asap. you need to know your hourly rates if you don’t how will you know when they under pay you. the agency also need invoices from you for their accounts. my agency will not pay me anything without an invoice. they have to keep their records straight or how do they show what they are paying out if asked.

As is the case with all the other agencies I’ve worked for.

However this is a bigger agency that do ‘self invoicing’ so the women told me they were not interested in my invoice. Apparently drivers make loads of mistakes that takes them time to fix… Their system seems loads better.

And ofcourse I know my rate. I insist on it in writing now (even if only a text).

I’ll either let them know or put it in a savings account. I’m not after robbing anyone. But a carrot is being dangled in my face… But I do know I’ll call them on monday and ask for bank details to return it.

All that’s said about agencies - these got me into a good job when I really wanted to work. And I have some respect because of this. The company they placed me with are training me on how to reverse an artic in the real world and I’m generally happy. I hate working nights but I signed up for it. I’m not going to repay them by robbing them.

a quick google search says this is for vat registered suppliers ie you. so seems they are paying you vat as you suspect. you need sorted or will cause you big problems with your own accounts and tax liabilities. I hope you have an accountant who can advise you.

You should either (a) invest your 20% in hookers and cocaine, or (b) approach the agency immediately and inform them of your concerns. It’s very easy to walk around smugly thinking that you’ve got one over on them, but mark my words, this sort of thing has a habit of quickly coming around and biting you on the arse!

sammym:

malcob:
you need this sorted quick, cos if they are overpaying you they will want it back at some point. I don’t get a breakdown of pay but I do know exactly what I should get payed every week and if wrong it is sorted asap. you need to know your hourly rates if you don’t how will you know when they under pay you. the agency also need invoices from you for their accounts. my agency will not pay me anything without an invoice. they have to keep their records straight or how do they show what they are paying out if asked.

As is the case with all the other agencies I’ve worked for.

However this is a bigger agency that do ‘self invoicing’ so the women told me they were not interested in my invoice. Apparently drivers make loads of mistakes that takes them time to fix… Their system seems loads better.

And ofcourse I know my rate. I insist on it in writing now (even if only a text).

I’ll either let them know or put it in a savings account. I’m not after robbing anyone. But a carrot is being dangled in my face… But I do know I’ll call them on monday and ask for bank details to return it.

All that’s said about agencies - these got me into a good job when I really wanted to work. And I have some respect because of this. The company they placed me with are training me on how to reverse an artic in the real world and I’m generally happy. I hate working nights but I signed up for it. I’m not going to repay them by robbing them.

I wouldn’t tell them anything before you ask them proper print out of money they paid you, what is what, don’t tell them that anything is wrong, just ask proper printout for your records, if possible ask to send you email every week and then, if you 100% sure that amount is not what you should receive, you can decide farther actions.

Not getting a payment breakdowm would ring alarm bells with me,be getting remittance notes/payslips for the time you’ve been working for this crowd for proof of earnings,tax deducted,what terms are you on ltd,PAYE?

lynchy:
Not getting a payment breakdowm would ring alarm bells with me,be getting remittance notes/payslips for the time you’ve been working for this crowd for proof of earnings,tax deducted,what terms are you on ltd,PAYE?

He is Ltd.

sammym:
The reason I know it’s 20% is because of this.

I take a photo of my timesheet. I then calculate the hours I’ve worked minus breaks and know my total billable hours. So I know it’s wrong. I’d know if I were underpaid as well as overpaid. I’ve had some bad experiences with agencies so am very over the top about this and even keep my printouts where I jot down time worked on the back.

I’ve used this method to chase up amounts as low as £8 with an agency before.

That’s fair enough, like I said, I’m no accountant and that sounds likely to me.

The thing that would be bothering me is: you have no official documents detailing money owed ( I’m not sure how photos of timesheets stand with officialdom), you have money dropped into your bank account with no breakdown of how it was earnt. If you’re ever asked questions, you’ve effectively no proof. Realistically, you could be accused of anything from money laundering to tax evasion and be left unable to defend yourself.

lynchy:
Not getting a payment breakdowm would ring alarm bells with me,be getting remittance notes/payslips for the time you’ve been working for this crowd for proof of earnings,tax deducted,what terms are you on ltd,PAYE?

I’m ltd.

I sort out my own tax/NI. So the breakdown does not bother me. What does bother me if them coming back in three months when I’ve left and them asking for a pile of cash.

I could be sneaky and just wind up the ltd company - but I believe in right and wrong and wouldn’t do that.

My real question is do I need to contact hmrc. It seems I don’t.

You do have an accountant I hope