elsa Lad:
Used umbrella company about 10 year ago, you get a extra ÂŁ1 but no real tax saving. Ltd using a decent accountant, you will save a lot in tax and pay little in National insurance. But to do it for 5 months would be a total waste of time and you wouldnât see any benefits whatâs so ever.
Think at the moment PAYE is your best option.
I thought short term would be best no?
I get with long-term you have to have a rainy day fund due to no holiday pay or sickness pay but for short term thatâs not really a issue.
adam277:
Well I can wait til April to see how it is.
elsa Lad:
Used umbrella company about 10 year ago, you get a extra ÂŁ1 but no real tax saving. Ltd using a decent accountant, you will save a lot in tax and pay little in National insurance. But to do it for 5 months would be a total waste of time and you wouldnât see any benefits whatâs so ever.
Think at the moment PAYE is your best option.
I thought short term would be best no?
I get with long-term you have to have a rainy day fund due to no holiday pay or sickness pay but for short term thatâs not really a issue.
Ah, so you KNOW you wonât be knocked over, and get a broken leg, tomorrow or next week, but think you might be in a yearâs time?
adam277:
I thought short term would be best no?
I get with long-term you have to have a rainy day fund due to no holiday pay or sickness pay but for short term thatâs not really a issue.
I dont think there would be a huge difference between accountancy fees if you were active for 3.months or 12 months as a ltd, perhaps just saving a bit off payroll cost. If that is north of ÂŁ1000 for the year is it really worth your while?
adam277:
Well I can wait til April to see how it is.
elsa Lad:
Used umbrella company about 10 year ago, you get a extra ÂŁ1 but no real tax saving. Ltd using a decent accountant, you will save a lot in tax and pay little in National insurance. But to do it for 5 months would be a total waste of time and you wouldnât see any benefits whatâs so ever.
Think at the moment PAYE is your best option.
I thought short term would be best no?
I get with long-term you have to have a rainy day fund due to no holiday pay or sickness pay but for short term thatâs not really a issue.
If your happy getting a job that you end up paying more ni than your fellow workers doing the same job and walking away with a smaller net wage then go for it.
Following a long consultation period, gathering due diligence and assessing the varying driver agency roles within our client network it has been determined that our agency drivers fall within IR35 legislation and as such any worker supplied should work on behalf of them under a PAYE employment basis only.
Long consultation period â â
It should be immediately obvious that almost all agency drivers fall within IR35. This has been a con from the get go and itâs about time it was stopped.
Be interesting to see how recruitment goes after the new rates kick in. Most jobs only advertise their LTD rates. Letâs see how many applicants they get now theyâre advertising jobs at ÂŁ9-10 per hour.
peirre:
Iâve just received an email from one of the agencies about IR35. The names of people and the agency name has been removed for obvious reasons
but the context of the email is unchanged
Briefing - IR35 and AWR Reforms
Dear Colleagues
As Iâm sure youâll be aware, HMRC proposed changes to workers eligible to operate outside of
IR35 are being reformed as of Monday 6th April 2020.
As of the 6th April large company operators within the UK will need to confirm whether temporary roles completed by contract staff including agency workers are to operate inside or outside of IR35 legislation. Following a long consultation period, gathering due diligence and assessing the varying driver agency roles within our client network it has been determined that our agency drivers fall within IR35 legislation and as such any worker supplied should work on behalf of them under a PAYE employment basis only.
What does this mean to our current Limited Company Drivers?
If you are a limited company driver with us. From the 22nd March 2020, you will only be engaged as a PAYE worker and as such your engagement terms and conditions will reflect this.
We will take the responsibility to ensure correct PAYE and national insurance contributions are collected from your pay at source weekly, and holiday pay will be accrued to enable you time away from work whilst still being paid.
The process to change engagement contracts is simple and your site representatives will be working with you to ensure the change is seamless on the 22nd March. Changes to PAYE Terms & Conditions
Additional legislation that also takes effect from April 6th relating to the pay and conditions for
agency workers on long term assignments.
As such agency workers will be entitled to certain conditions that reflect those attracted by being employed permanently on the client site you currently work on behalf of Us.
Once we have completed our due diligence a further briefing will be sent out to all drivers detailing sites specific information on pay rates and holidays pay entitlement.
What does this mean to our current PAYE drivers?
If you are currently a PAYE worker, nothing will change in relation to your engagement terms and conditions. If the above pay rates are higher than your current hourly rate, then you will immediately be lifted to the new rate and any applicable increase in holiday entitlement will be reflected in your accrual accounts.
As previously mentioned we support the ethical pay of our workers and as such welcome and embrace the changes proposed to IR35 and will support our clients in the implementation of the new legislation, ensuring agency workers are paid correctly, and on ethical terms and conditions. What does this mean to our LTD drivers?
Drivers currently working under a PSC contract will be required to transfer to PAYE status and will be paid in line with the above.
Timeline
⢠1st Briefing - This is the first of three briefings to our driver network and forms initial communication out
⢠2nd Briefing - Will be sent out by Friday the 7th February. This briefing will include more information on what to do and how the legislation changes will affect you â To include FAQ. If you have any questions at all regarding any of the legislation changes, please direct to your sites and we will make sure that we include these in the FAQ document
⢠3rd Briefing â Will include site specific information and pay rates you can expect from the sites you work out of. You will receive this by Friday 28th February at the latest.
I hope this information provides some clarity on the impending legislation changes.
Please direct all questions to your site representatives, the more questions we can answer hopefully the better prepared you will all be when the changes take effect.
Please look out for further briefings over the next few weeks.
Yours sincerely
Joe Bloggs
Operations Director
Shame you donât mention the agency.
No doubt theyâll be supplying full PPE, including boots, torches and of course a âworkâ mobile phone?
Think possibly it may have line and staff in the name of agency, I got same briefing.
Following a long consultation period, gathering due diligence and assessing the varying driver agency roles within our client network it has been determined that our agency drivers fall within IR35 legislation and as such any worker supplied should work on behalf of them under a PAYE employment basis only.
Long consultation period â â
It should be immediately obvious that almost all agency drivers fall within IR35. This has been a con from the get go and itâs about time it was stopped.
Be interesting to see how recruitment goes after the new rates kick in. Most jobs only advertise their LTD rates. Letâs see how many applicants they get now theyâre advertising jobs at ÂŁ9-10 per hour.
Some agency drivers will be paying LESS tax not more under IR35 if they work for more than one agency in any one week.
This yearâs budget day will be on 11th March 2020, when it is expected that the NI tax free allowance for employees will rise to ÂŁ183 each week for every agency that pays you in any one week. More agencies, more allowances. Two agencies, two allowances. Three agencies, three allowancesâŚand so on.
If you are paid by two agencies in one week, you will get 2 x ÂŁ183 = ÂŁ366 NI tax free allowance in that week. If you are paid by three agencies in one week, you will get 3 x ÂŁ183 = ÂŁ549 NI tax free allowance in that weekâŚand so on.
The NI tax free weekly allowance paid under PAYE isnât annualised, so you keep all these multiple NI tax free weekly allowances and donât have to pay them back at the end of the tax year if you work for more than one agency in any one week.
For multiple agency drivers who work under IR35 the NI system clearly isnât fit for purpose.
peirre:
Iâve just received an email from one of the agencies about IR35. The names of people and the agency name has been removed for obvious reasons
but the context of the email is unchanged
As previously mentioned we support the ethical pay of our workers and as such welcome and embrace the changes proposed to IR35 and will support our clients in the implementation of the new legislation, ensuring agency workers are paid correctly, and on ethical terms and conditions.
What a load of balooneys. They support âethical payâ (i.e. equal pay with full timers) but it took govât action (or the threat of it) for them to actually start doing it
