Agency are forcing me to be paid by Managed Services Co.

**Kyajae** · 6 July 2007, 15:30

Originally posted by adam_sansom

Hi,

Can they do this? I've just accepted a new contract in Belgium and Progressive the agent require me to be paid via Connexion Europe who charge a whopping 5% of my monthly invoice! Can thye force me to go down this route? I have a Limited UK company already and so wish to use that for my 6 mths abroad. Any thoughts?

Thanks ;-)

Walk away now.

**Rantor** · 6 July 2007, 15:32

Originally posted by adam_sansom

Hi,

Can they do this? I've just accepted a new contract in Belgium and Progressive the agent require me to be paid via Connexion Europe who charge a whopping 5% of my monthly invoice! Can thye force me to go down this route? I have a Limited UK company already and so wish to use that for my 6 mths abroad. Any thoughts?

Thanks ;-)

This is normal here, it is poss to use UK Co for 6 mths but there may be some advantages to doing as they suggest if there is any chance it will run over.

Talk to Connexion and look at your net position (hint!) before arguing the toss.

BTW - Would it be as an 'employeee' or a local-registered independent.

**adam_sansom** · 6 July 2007, 15:43

Sorry what to do you mean by "- Would it be as an 'employeee' or a local-registered independent." ? I would be working as a UK employee of my UK registered Ltd Co. Thanks

**oraclesmith** · 6 July 2007, 15:49

You may well have a UK limited, but they don't care. The solutions from their website looks like standard brolly to me.

**oraclesmith** · 6 July 2007, 15:56

Q: What do we provide to contractors with a Payroll solution?
A: When we provide with a payroll solution, a contractor will become an employee and we will provide him/her with a local salary. We will deduct all relevant tax and social security at source. He/she will receive a monthly pay slip detailing your salary.

Q: As an employee, how much and where must the contractor be paid?
A: We will pay a salary in line with the work level the contractor is performing in the country he/she is working. We will always provide the contractor with proof of earnings (pay slip) for compliance reasons to satisfy the agency and relevant tax authorities.

Employee !!!!!!!!!

**Rantor** · 6 July 2007, 16:01

Originally posted by adam_sansom

Sorry what to do you mean by "- Would it be as an 'employeee' or a local-registered independent." ? I would be working as a UK employee of my UK registered Ltd Co. Thanks

It can make a big difference to your tax position and to the amount of bureaucracy.

These are not standard brolly operations but are geared up to provide a viable way to freelance in Belgium, Lux and (sometimes) France (but not Holland!)

This method is discussed on the PCG overseas guides I think.

The agency prob have a deal with this particular management co (there are quite a few based in Lux) and that might p1ss me off a bit, but the margin charged is not unusual.

Edit - BTW people do use UK Ltd Co here but there is a risk of being deemed to be operating from here and that will hurt!

**Rantor** · 6 July 2007, 16:03

Originally posted by oraclesmith

Q: What do we provide to contractors with a Payroll solution?
A: When we provide with a payroll solution, a contractor will become an employee and we will provide him/her with a local salary. We will deduct all relevant tax and social security at source. He/she will receive a monthly pay slip detailing your salary.

Q: As an employee, how much and where must the contractor be paid?
A: We will pay a salary in line with the work level the contractor is performing in the country he/she is working. We will always provide the contractor with proof of earnings (pay slip) for compliance reasons to satisfy the agency and relevant tax authorities.

Employee !!!!!!!!!

So it would seem - but things ain't always what they seem

**threaded** · 6 July 2007, 16:54

Walk away! Seriously.

From experience the accountants etc. certain agencies suggest are at best hopeless and at worst up to something...

For example in Denmark they had one guy I know paying 40% more tax than he needed to! And I was nodded a wink via a contact in the tax office saying they never saw the money...

**moorgrime** · 6 July 2007, 17:50

and don't forget, if you are coming to Belgium for even a short period, you or the agent will have to make a limosa declaration (new rules)

see http://www.limosa.be/

I suspect the authorities will be a bit lax at first, but I know of 1 agency that insists on all foreign contractors having a limosa certificate

Agency are forcing me to be paid by Managed Services Co.