Just read an article in paper about taxman closing loophole where agencys class workers as self employed in order to reduce employers NI payments, and ofcourse reduce employees rights , but there not right bothered about that .
Any agency drivers comments ?
Jim
Any chance you can provide a link or tell me the source or the article.
Many Thanks
I would love to see the source too.
I am very concerned by the way SOME agencies are doing the SE/Umbrella schemes.
I was speaking to a few and they said the following
- I can not register as a LTD Company - OK
- I can not register as a PAYE employee■■? - NOT OK?
- I MUST use the “Appointed” umbrella company - DEFINITELY NOT OK!
I am guessing it is 2 and 3 they will be clamping down on.
damian39:
Any chance you can provide a link or tell me the source or the article.Many Thanks
JFC999:
Just read an article in paper about taxman closing loophole where agencys class workers as self employed in order to reduce employers NI payments, and ofcourse reduce employees rights , but there not right bothered about that .
Any agency drivers comments ?
Jim
This is also of interest but can only find this info
They been on about that for a couple of years.
I think the way some agency’s are running now it needs addressing …
Thanks for putting the link up mastellan, I dont seem to be able.
The way I read it they are more concerned about NI contributions than income tax revenue.
Jim
JFC999:
Thanks for putting the link up mastellan, I dont seem to be able.
The way I read it they are more concerned about NI contributions than income tax revenue.
Jim
People are living longer so this would be 1 reason why
You pay National Insurance contributions to build up your entitlement to certain state benefits, including the State Pension. The contributions you pay depend on how much you earn and whether you’re employed or self-employed. You stop paying National Insurance contributions when you reach State Pension age.
but here will be staff,drivers fault.may be some drivers must be pay some extra tax.because not one drivers who work for umbrella company don t want check all paysleep.and to many drivers put much more expences what they get.
If you are worried about the agency & the umbrella company you are forced to use, why not just give HMRC a ring and ask them about it. They will tell you if you are doing anything wrong and act on the company in due course. If they say it’s ok then try & get some proof off them just incase they try to stiff you later.
JFC999:
Just read an article in paper about taxman closing loophole where agencys class workers as self employed in order to reduce employers NI payments, and ofcourse reduce employees rights , but there not right bothered about that .
Any agency drivers comments ?
Jim
This is where drivers are getting scammed by agencies. The companies still pay the NI. They just pay it to the employee instead but because he is self employed he doesn’t pay NI on the dividend and pockets the payment himself.
Or he should. In reality the agencies are pocketing this money and fobbing the drivers off with the old +£1 for LTD scam. Whenever I’ve gone LTD or Umbrella I’ve always got +25% on my hourly rate. ALWAYS.
early or later all drivers who work via one agency permamently will be not legaly.drivers who work for 20 agency may be care on.
Do away with employers NI contributions and that will do away with these dodgy companies, It will put more money in employees pockets and help the economy.
Too simple.
limeyphil:
Do away with employers NI contributions and that will do away with these dodgy companies, It will put more money in employees pockets and help the economy.
Too simple.
na do away with umbrella company’s .
I kid you not the agency’s would soon be thinned out and revert back to local agency’s for local firms.
Think about it ,
Big agency runs a small office with a max of 2 staff in each town, all out of hours calls done by 1 hub . cost minimal pay to drivers low profits bigger an agency nowerdays is just a clearing house .
iv had 3 onto me this week, my one question is it umbrella reply yes well no thanks first drivers on line or first personnel just one of many that try it on with forced umbrella get them all closed is what i say even though iv done agency for years, slugs
When I started driving in 1989 agencies were a route to a full time job, (the gaffer had the chance to look at you) or cover for busy periods and holidays.
Now it has become a way for large employers to exploit people and drop them with a phone call people working on the agency with no rights whatsoever sometimes for years on end, now this may suit some people but not all, the fraud that is the umbrella scheme with all the other chicanery and sharp practice something needs to be done.
I suggest a percentage cap for agency 10-15% of the total employed workforce which could be increased over busy periods a ban on umbrella schemes and proper holiday pay.
There are a few good ones, but if I were to give a figure then 90% of them are scum.
good point mike
I looked at this before setting up my LTD company.
The key rule is IR35, which sets the current rules as to if you are a true company/contractor or an employee hiding from the taxman.
They way i interpreted it was it would be ok for me if i didnt work at the same place or through the same agency for too long.
I had a detailed discussion with an umbrella company when i was new too all this and wet behind the ears, after filtering out the endless bs i took the opinion that the umbrella company was just a layer of complexity to keep the taxman away from the agency. For a significant fee obviously that they expected me too pay. Decided to set up my own company and do it myself. Dont work for agencies that force you through a scheme.
Think as a ltd company will be ok, if i was self employed would be worrying. Happy to be corrected.
At the end of the day the tax man cant come after me, he would have to go for my ltd company as it is a separate legal entity. If he sends me a big bill the limited company would no doubt go bankrupt … if you get my drift.
I dont know how these agencys have been getting away with this for so long.
It illegal what they are doing !
You cant work self-employed and work at the same company day after day !
But if you are supplied work by 1 agency, but work for their different customers, how does that affect you, the limited company driver?
Ken.
Quinny:
But if you are supplied work by 1 agency, but work for their different customers, how does that affect you, the limited company driver?Ken.
Good point,
I’ve always looked at it, that because I work in 2-3 different places I’m safe but in reality I’m contracted to the agency as you’ve stated. You can also flip it around and ask the question that if you were on the books of a few different agencies that supplied the same company how would HMRC view it.
Either way I’m not going to loose any sleep over it but an interesting question to ask your accountant.