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NetContractor
31st May 2017, 11:00
I have been deemed inside IR35 by my public Sector client. All invoices where paid out prior to April 5th to draw a line under my non IR35 work.

However post IR35, my agency calculated my tax, made the appropriate deductions...this is fine. However when I requested a payslip, which was not automatically forth-coming, they delivered me one, which demonstrated that their accountants had taxed my GROSS invoice amount, including VAT.

For over a week now I have been requesting that they get the calculation corrected, and make an additional payment. Their response is that I should contact their accountant, but I am of the mind that the agency is making money and should be sorting this out for me.

Anyone else had problems of incorrect tax calculations?

NetContractor
1st June 2017, 07:52
It has been nearly 3 weeks now since I was paid and nearly 2 weeks since I was issued with a payroll statement, and ultimately queried the incorrect tax calculation.

I have been asking my agency repeatedly for a corrected calculation, statement, and for the additional funds owing. They keep fobbing me off and are not resolving the issue.

Is there anything I can do about it beyond continue to wait and pester them? Do HMRC have any official channels to deal with these matters?

eek
1st June 2017, 07:54
It has been nearly 3 weeks now since I was paid and nearly 2 weeks since I was issued with a payroll statement, and ultimately queried the incorrect tax calculation.

I have been asking my agency repeatedly for a corrected calculation, statement, and for the additional funds owing. They keep fobbing me off and are not resolving the issue.

Is there anything I can do about it beyond continue to wait and pester them? Do HMRC have any official channels to deal with these matters?

Sadly its nothing to do with HMRC and everything to do with your agency and their accountant.

It also confirms everything I said here for months that you really should use an umbrella for public sector contracts that are inside IR35...

NetContractor
1st June 2017, 08:07
Sadly its nothing to do with HMRC and everything to do with your agency and their accountant.

It also confirms everything I said here for months that you really should use an umbrella for public sector contracts that are inside IR35...

That is fine, but given that this is a one off, it does not make sense to make the limited company I have held for 15 years dormant. I will never contract for public sector inside IR35 again; I have developed enough skill and experience to avoid this situation, and am only in it because I have been with this client for 3 years, they are on my doorstep, and their HR department made a stupid blanket inclusion without considering the actual facts or being aware of the working practices.

Before anyone suggests arguing against the decision, that is not realistic either as it just serves to annoy people...So I just hiked my rate more than to accommodate.

As for an umbrella company, I looked into it. But then I would be paying my accountant a continued monthly fee to complete my normal accounts, plus pay an umbrella company for their services. I have NEVER used an umbrella company, as I went LTD on day 1. And yes, I would still need to pay my accountant as it is a fixed monthly fee, and as we are part way through a fiscal year, there is accounts to be maintained either way.

The difference between umbrella and limited is extremely negligible.

What I have done however, is ask my accountant to calculate my PAYE and I will issue that to my agency to verify their figures. As I am paying my accountant regardless, there is no problem getting that done and I get figures from people I trust and have been with for 10 years.