Refusal to pay to business account

[Nhscontractor]

Hi,

My question I hope is a simple one, can my agency refuse to pay my invoices to a business bank account which is a different name to my company?

To give you a litte back story I recently took on a contract from an agency I have never used before I am normally happy to go umbrella but as they refused my preferred choice of umbrella I decided I would go ltd. the structure is such that my payments are made to my service providers bank account who then work out my tax ni expenses etc then pay to my account which is with the same bank and sits under there account. My actually business bank account is set up so that it only accepts payments this way which is fine for me as I planned to put everything through said service provider.

However my agency is refusing to pay to that account on the basis it isn't mine are they allowed to do this ?

Thanks

[LisaContractorUmbrella]

Hi,

My question I hope is a simple one, can my agency refuse to pay my invoices to a business bank account which is a different name to my company?

To give you a litte back story I recently took on a contract from an agency I have never used before I am normally happy to go umbrella but as they refused my preferred choice of umbrella I decided I would go ltd. the structure is such that my payments are made to my service providers bank account who then work out my tax ni expenses etc then pay to my account which is with the same bank and sits under there account. My actually business bank account is set up so that it only accepts payments this way which is fine for me as I planned to put everything through said service provider.

However my agency is refusing to pay to that account on the basis it isn't mine are they allowed to do this ?

Thanks

Yes and your 'service provider' will probably fall foul of the MSC legislation by operating in the way that you have described

[tractor]

...

Hi,

My question I hope is a simple one, can my agency refuse to pay my invoices to a business bank account which is a different name to my company?

To give you a litte back story I recently took on a contract from an agency I have never used before I am normally happy to go umbrella but as they refused my preferred choice of umbrella I decided I would go ltd. the structure is such that my payments are made to my service providers bank account who then work out my tax ni expenses etc then pay to my account which is with the same bank and sits under there account. My actually business bank account is set up so that it only accepts payments this way which is fine for me as I planned to put everything through said service provider.

However my agency is refusing to pay to that account on the basis it isn't mine are they allowed to do this ?

Thanks

What is this service provider you refer to? If it is your umbrella by another name, they have already told you that method is unnacceptable. Did you try to fool them? What does your contract say?

Is the agent trying to force you down an umbrella route where they have an interest?

[TheFaQQer]

My question I hope is a simple one, can my agency refuse to pay my invoices to a business bank account which is a different name to my company?

Yes.

[cojak]

And I wonder what type of umbrella would encourage this type of deception?

[Nhscontractor]

It's not umbrella I have a ltd company and will be paid through my ltd.

Essentially the only issue is I want them to pay the provider so they can do all of the accounting bits then they will tell me what I can draw from my company account as my wage

[tractor]

.....

It's not umbrella I have a ltd company and will be paid through my ltd.

Essentially the only issue is I want them to pay the provider so they can do all of the accounting bits then they will tell me what I can draw from my company account as my wage

That is NOT the way it works. You cannot do this. Your agent is correct in refusing to accommodate you.

[northernladuk]

Oh dear......

[Nhscontractor]

"Service provider" raise invoices on behalf of the Limited Company direct to Agency
2. Agency pays invoice to Service provider Ltd bank details
3. Funds are then allocated to *my* Limited Company VAM account
4. Company income is split into a wage and company profits.
5. Wage is paid to the Director as an employee of his own Limited Company which is subject to PAYE tax and NI
6. Company income is paid to Director upon request which is subject to corporation tax
7. All tax and national insurance is reserved in Company VAM Account
8. PAYE tax and NI is paid over monthly with Payment submission to HMC
9. Corporation tax is reserved until the end of the company accounting year and paid over upon completion of Corporation Tax return.


This was the explanation the provider gave to me I have subsituted names ofc. I was not under the impression my reading through Msc legislation this broke any rules but if so I would very much appreciate if you could point it out to me

[Scruff]

Please let us know who the "Service Provider" is? I wonder if its one of those who promise you 84%+ retentions and that there Scheme has been approved by a "QC"?