At the place I work on agency, we all got this letter about coming off Ltd. They are pushing Payroll intermediary PAYE which I have never heard of. anyone got any ideas about this. Got a feeling the only people who gain out of this is the agency.
If the…
Intermediary PAYE will pay you holiday money and make the required pension/NI contributions (which I doubt), it might be worth asking a third party accountant with no vested interests whether it’s legit or not.
My experience of agencies and this sort of thing echos your thoughts about the agency being the only winners in the long run.
Option 1: Youre employed by Staffline? A company with a reputation* to keep, assets, and customers? Option 2: Youre employed by Joe Bloggs? A company…?
It states on option 2 that you have “the flexibility for different agencies”. Is this somehow prohibited if you work direct for Staffline?!
It states as advantages for 2:
Full employment status…this is also available for 1
Greater flexibility…isn`t that why you go with an employment agency… such as in 1 ?
All accountancy dealt with at source…etc… the same as 1
So, I can see them showing no advantage to option 2.
page 2.
Differing top-line pay for 2 over 1. By introducing another extra level of admin they are paying more!
Wow! That is a neat…ummmm…well…looking for a word here that won`t attract any libel lawyers…
- Yeah, OK!
Ooh…
I forgot, I expect your Intermediary won’t be doing this free, there will be charges somewhere.
yourhavingalarf:
Ooh…I forgot, I expect your Intermediary won’t be doing this free, there will be charges somewhere.
Yes they saying you earn £1-2hr more but I wonder what their fees are?
elsa Lad:
yourhavingalarf:
Ooh…I forgot, I expect your Intermediary won’t be doing this free, there will be charges somewhere.
Yes they saying you earn £1-2hr more but I wonder what their fees are?
There will be charges.
Also, if anybody thinks that these ‘intermediaries’ are going to pay £2 to £3 per hour more, AND pay your tax/NI contributions, and your holiday pay, they need their head examin… err, I mean, would they like to help me move $50.000.000 in a deposit box out of Nigeria…
numbermill.co.uk/
“NumberMill was set up, specifically to meet the requirements of recruitment business’s …”
brooksonone.co.uk/
“CAPTURED BY IR35?
Do you need to join an Umbrella to get paid?”
Lots to read on both sites, enjoy your afternoon.
elsa Lad:
Yes they saying you earn £1-2hr more but I wonder what their fees are?
£125…
For Numbermill to assess your status. It’s on their IR35 contractor page. Then, I suspect further management fees will apply.
I looked at both websites. They just reek of average, uninspired website merchandising. Operated by people who have spotted a gap in the market which is polite speak for, we’re gonna screw you.
Avoid.
I had the same conversation with a driver on Friday.
Option 1 swop to direct PAYE, pay taxes and get holiday pay, he will be able to carry on doing the same job he’s been on for months.
Option 2 stay as a Ltd Co but move on and work elsewhere, and there’s no guarantee that the work will be there.
Tbh I know it sounds selfish but I’d rather he take option 2, then I’ve one less driver snapping at my heels in the pecking order of agency drivers who are on that site.
It’s just an umbrella… Staffline really are the worst for trying to scam the drivers!
You will end up paying two loads of NI and also fees. Plus no statutory pension!!!
None of the benefits of Ltd and all of the downsides.
Umbrella company. You’ll get holiday pay and workplace pension rights of an employee but it’ll come out of that extra £2/hr over PAYE along with employers NI and the umbrella company fee too so you’ll be a whole lot worse off than £12/hr on PAYE.
Go PAYE.
Conor:
Umbrella company. You’ll get holiday pay and workplace pension rights of an employee but it’ll come out of that extra £2/hr over PAYE along with employers NI and the umbrella company fee too so you’ll be a whole lot worse off than £12/hr on PAYE.Go PAYE.
Think I have to agree with you Conor. Did about a year with a umbrella company about 8 years back, then I heard about the flat rate scheme and I thought the umbrella company was a rip off.
When I started work on Friday, the agency told me to read the letter and think about it. Never heard of it before and I guessed its just the way of the agencies managing to keep the drivers off the books with no advantages to the drivers.
Franglais:
It states on option 2 that you have “the flexibility for different agencies”. Is this somehow prohibited if you work direct for Staffline?!
I don’t think it’s prohibited (but could be wrong) however if you work for two or more agencies through PAYE only one should be registered as your first or main job. Otherwise both agencies (or more) will be paying you your take home figure factoring in your £14000 tax free allowance, leaving you with a large tax bill come April when the tax office realise you’ve not paid up. By using the same umbrella company for multiple agencies your tax free allowance will only be used once.
manicpb:
Franglais:
It states on option 2 that you have “the flexibility for different agencies”. Is this somehow prohibited if you work direct for Staffline?!I don’t think it’s prohibited (but could be wrong) however if you work for two or more agencies through PAYE only one should be registered as your first or main job. Otherwise both agencies (or more) will be paying you your take home figure factoring in your £14000 tax free allowance, leaving you with a large tax bill come April when the tax office realise you’ve not paid up. By using the same umbrella company for multiple agencies your tax free allowance will only be used once.
The HMRC site explains how workers with more than one employer are treated. Doesn’t seem too difficult? But I haven’t needed it myself. No more difficult for an employee than setting up s company surely?
But it does require the employers to do some extra admin work. I would have thought that would be a perfectly predictable expense for an agency? However if the agency can persuade the workers to pay for outside accountants to do this…
.
That’s how it looks to me anyway.
Franglais:
manicpb:
Franglais:
It states on option 2 that you have “the flexibility for different agencies”. Is this somehow prohibited if you work direct for Staffline?!I don’t think it’s prohibited (but could be wrong) however if you work for two or more agencies through PAYE only one should be registered as your first or main job. Otherwise both agencies (or more) will be paying you your take home figure factoring in your £14000 tax free allowance, leaving you with a large tax bill come April when the tax office realise you’ve not paid up. By using the same umbrella company for multiple agencies your tax free allowance will only be used once.
The HMRC site explains how workers with more than one employer are treated. Doesn’t seem too difficult? But I haven’t needed it myself. No more difficult for an employee than setting up s company surely?
But it does require the employers to do some extra admin work. I would have thought that would be a perfectly predictable expense for an agency? However if the agency can persuade the workers to pay for outside accountants to do this…
.
That’s how it looks to me anyway.
Your right it’s really easy, you either pay tax on the full amount or just the amount earnt after the tax free amount.
You only get your tax free amount with your first or main employee. Staffline is not going to contact Extra Personal (for example) to ask how much you’ve earnt with them so they can adjust their own payments…it just won’t happen!
Most agencies, I guess, will pay you PAYE including your tax free allowance and just leave you to face the letter from the tax office in April. It is the employee’s responsibility to ensure they pay the right tax, not the employer.
manicpb:
Franglais:
manicpb:
Franglais:
It states on option 2 that you have “the flexibility for different agencies”. Is this somehow prohibited if you work direct for Staffline?!I don’t think it’s prohibited (but could be wrong) however if you work for two or more agencies through PAYE only one should be registered as your first or main job. Otherwise both agencies (or more) will be paying you your take home figure factoring in your £14000 tax free allowance, leaving you with a large tax bill come April when the tax office realise you’ve not paid up. By using the same umbrella company for multiple agencies your tax free allowance will only be used once.
The HMRC site explains how workers with more than one employer are treated. Doesn’t seem too difficult? But I haven’t needed it myself. No more difficult for an employee than setting up s company surely?
But it does require the employers to do some extra admin work. I would have thought that would be a perfectly predictable expense for an agency? However if the agency can persuade the workers to pay for outside accountants to do this…
.
That’s how it looks to me anyway.Your right it’s really easy, you either pay tax on the full amount or just the amount earnt after the tax free amount.
You only get your tax free amount with your first or main employee. Staffline is not going to contact Extra Personal (for example) to ask how much you’ve earnt with them so they can adjust their own payments…it just won’t happen!
Most agencies, I guess, will pay you PAYE including your tax free allowance and just leave you to face the letter from the tax office in April. It is the employee’s responsibility to ensure they pay the right tax, not the employer.
When I worked for more than one agency, or did the occasional shift for an agency whilst in full time employment, I ticked the box that it was a second job, and the agency would deduct full tax and N I contributions. I think it was tax code ‘X’ on the P60 and P45. HMRC would automatically calculate if you paid to much in that employ, and if you did (because you didnt use your full allowance with the ‘main’ agency ) , they would automatically give you a refund, either by cheque, or by adjusting your next years allowance.
To give HMRC some credit, they do work both ways. If you do happen to pay to much tax, they will pay you back, and if you use the PAYE system correctly, usually automatically.