Going PAYE through agency

Goonie · 18-08-2009, 01:46 PM

OK, I need to set the scene a little here.

I run my own limited company after spending some time with an umbrella.

I have just found a new contract. I'm happy, the client's happy, it appeared the agent was happy.

And now we have hit a fantastically amazing snag.

The agency are insisting that I go on their books PAYE!

Their justification is that they have had concerns with debt transfer and IR35 and their legal advisers have insisted that this is the best way to mitigate any risk.

When I demanded to know why I wasn't informed of this sooner, the agent said that it is simply company policy and they've never had an issue before. I can't believe that. Their website makes reference to their in house PAYE payroll, but no mention of it being compulsory!

I'm flabbergasted by this and have insisted that I speak to a director about the matter. Whilst I'm waiting for a call, has anyone else had this? Any advice?

I thought most agencies preferred people "off the books"?

Malvolio · 18-08-2009, 02:21 PM

They are talking *******s, the whole point of you having a Limited Company is that the debt transfer provisions don't apply because of your company is the intermediary point at which any such debt stops. If they don't know that, they shouldn't be in business and their advisers are either incompetent to proactice or have never read S44-47 IPETA 2003 properly.

They can of course insist on you working as a PAYE Agency Temp through them, but you don't have to accept it. It might be worth talking to your client and suggesting you are going to walk away because the agency are playing silly buggers; that might focus a few minds.

So who are they? I could do with a laugh...

Goonie · 18-08-2009, 04:35 PM

Quote:

Originally Posted by Malvolio

It might be worth talking to your client and suggesting you are going to walk away because the agency are playing silly buggers; that might focus a few minds.

I think that's my next point of call. No idea who their legal advisers are...

I don't want to name and shame yet in case it gets read....

CliveP · 19-08-2009, 09:26 AM

come on, name and shame. That's what these boards are for....accountability.

Send me a PM if suits, I promise to be discreet.

Clive

Goonie · 19-08-2009, 09:34 AM

No, I'll try and resolve the situation first. I haven't set foot on the client site yet!

Don't want to bugger things up

Goonie · 20-08-2009, 12:51 PM

Right, current state of play - I've emailed the agency quoting S44-47 IPETA 2003, cheers Malvolio. I'm hoping that that will iron things out rather than getting the client involved.

Goonie · 21-08-2009, 01:15 PM

Well, as of midday today, I've walked away from it. I must be mad.

But there's no way I'm going PAYE on a contract that is outside IR35.

The truth be told, the only reason I'm walking is because I have another two irons in the fire, which I had as insurance purposes anyway (I didn't tell the respective agents that I had found a contract).

As someone that is business of my own account I also refuse to be told how to run my affairs by a recruitment agency. I'm sure they'll find another chimp to do it though.

curleyted · 21-08-2009, 04:59 PM

Quote:

Originally Posted by Goonie

I must be mad.

That depends on your point of view... but depending on the notice you had to give maybe there was scope to work it until you got another contract?

Goonie · 21-08-2009, 05:45 PM

14 days (with the client's notice period to me as zero). I want to be flexible so it was a no-go.

dodgy_Dave · 24-08-2009, 10:34 AM

This is a truly funny one, because we are only too happy for someone else to deal with the grotty details of wages and tax deductions. I can't think of any agency (that isn't just your office temps place) that would actively WELCOME doing this....