Getting paid by 5th April Getting paid by 5th April
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  1. #1

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    GhostofTarbera's Avatar
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    Default Getting paid by 5th April

    90% of companies / Agents pay via BACS

    4th and 5th April are non processing days

    Meaning last payment date is 3rd of April

    Meaning last file submission date is 1st if April by your Agent

    Agent normally submits initial BACS submission file a week beforehand as BACS does pre validation and gives errors reports / agent then has a week before final submission to amend / cancel / update

    Most contractors will submit final invoice on the 27th and that will have to match online timesheet + timesheet approver might not do till Monday morning

    Processes within agency / BACS will take another few days to generate the file

    I predict 25% will get paid before the 6th April at most


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  2. #2

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    But remember it’s the responsibility of the fee payer to apply PAYE correctly on deemed payments post April. In other words, once the payment has gone out the door, it’s a done deal. The problem arises when the fee payer fails to kick the payment out the door before 6 April and *then* takes their responsibility seriously after 6 April, so you end up with a deemed payment when you expected otherwise. Personally, I wouldn’t faff with all this last minute nonsense and would leave a wide berth if the concern is about generating a deemed payment on a contract that was assessed (prior to April) as outside.

  3. #3

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    oh, do give it a rest ffs.
    Entropy is NOT what it used to be.
    Inertia, however........................

  4. #4

    Should post faster

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    Quote Originally Posted by jamesbrown View Post
    But remember it’s the responsibility of the fee payer to apply PAYE correctly on deemed payments post April. In other words, once the payment has gone out the door, it’s a done deal. The problem arises when the fee payer fails to kick the payment out the door before 6 April and *then* takes their responsibility seriously after 6 April, so you end up with a deemed payment when you expected otherwise. Personally, I wouldn’t faff with all this last minute nonsense and would leave a wide berth if the concern is about generating a deemed payment on a contract that was assessed (prior to April) as outside.
    Hi James

    It needs to be remembered that the fee payer deductions can only be made if the end client has given an "inside" determination. The deductions can't be made if the end client hasn't done their job properly.

    This could lead to a rush to make assessments in March, or it could lead to delayed March payments to contractors.

    Thanks


    Zeeshan

  5. #5

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    I am expecting a slew of agencies refusing to make a payment post 6th April as they too will have no idea what the **** is happening
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

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  6. #6

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    Default

    Current client wants to run the gig up to the end of March, and it takes them a couple of weeks to turn over a timesheet into payment from the agency at the best of times. I don't want to scupper the whole thing, but I'm not sure how we're going to tackle this.

    That said, it'll be their problem if they go into the new FY anyway, and we are (in my estimation) outside of IR35

  7. #7

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    Quote Originally Posted by DolanContractorGroup View Post
    Hi James

    It needs to be remembered that the fee payer deductions can only be made if the end client has given an "inside" determination. The deductions can't be made if the end client hasn't done their job properly.

    This could lead to a rush to make assessments in March, or it could lead to delayed March payments to contractors.

    Thanks


    Zeeshan
    I think I interpret the consequences of the draft legislation differently than you. Until such time as the client provides an SDS, the liability rests with them. 2(10) 61N is amended as follows:

    Unless and until the client gives a status determination statement to the worker (see section 61NA), subsections (3) and (4) have effect as if for any reference to the fee-payer there were substituted a reference to the client; but this is subject to section 61V.
    In other words, the fee payer should make payments as usual until such time as they receive an SDS. You are sort of saying the same thing, but implying that the liability rests with the fee payer until they receive an SDS to hand down. It doesn’t. I concede that the fee payer may be lost in confusion and delay payments, but there is no need.

  8. #8

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    It is also worth noting that any new rules will not take effect until the legislation is enacted and begins to apply, as described in "commencement" (i.e., for payments made on or after 6 April).

  9. #9

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    Where did this 'must be paid before April 5th' idea come from?

  10. #10

    Should post faster

    DolanContractorGroup's Avatar
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    Quote Originally Posted by jamesbrown View Post
    I think I interpret the consequences of the draft legislation differently than you. Until such time as the client provides an SDS, the liability rests with them. 2(10) 61N is amended as follows:

    In other words, the fee payer should make payments as usual until such time as they receive an SDS. You are sort of saying the same thing, but implying that the liability rests with the fee payer until they receive an SDS to hand down. It doesn’t. I concede that the fee payer may be lost in confusion and delay payments, but there is no need.
    I agree with you.

    I interpreted your original post as saying that fee payers could potentially make deemed payments without doing/receiving an SDS which confirms the inside position.

    But yes, that's correct, the liability will stay with the end client until the SDS has been done.


    Kind regards

    Zeeshan

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