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Agency moving to PAYE

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    Agency moving to PAYE

    Finally, the agency has woken up to the IR35 reform and notice sent to contractors this week. They've supposedly put all 'roles' through CEST and got their answer. We are all going inside and they want us on PAYE by the end of Feb.

    My intention was to give notice this month and walk by the end of March. Which is couple of weeks before the contract expires anyway. The last invoice then gets paid before the new financial year.

    Can agencies change payment terms under the existing contract? Or can I terminate due to this reason? My notice period is 30 days so it appears I don't have enough time to get out cleanly

    #2
    Why are the agents doing this and not the clients?

    Yes they can and a vast number of agencies will be doing this. It happened at the public sector cut over. Its in their interests as well as yours. Payment timescales in the contract is more about max allowable that exact days.

    Risk is if they are late.

    You also realise an ir35 inside determination has just destroyed your outside determination in the past. Its too late to get away from that fact. Now you've got to hope you drop of HMRCS radar by leaving.
    Last edited by northernladuk; 6 February 2020, 13:16.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #3
      Originally posted by SeededLoaf View Post
      Can agencies change payment terms under the existing contract? Or can I terminate due to this reason? My notice period is 30 days so it appears I don't have enough time to get out cleanly
      I'd not accept the agency changing payments terms (if by that you think they'll try to deduct ER NI and App. Levy for work beyond end of February for your current contract).

      I'd give notice and tell the agency you'd expect them to honour the existing contract and remind them that they can't legally deduct ER NI from the contract you have with them (unless they were somehow ahead of the game and had that written into the contract).

      What they are likely to do is give notice, which is what you want anyway. What is their notice period for you? If 1 week, perhaps delay delay giving notice for a bit.
      Last edited by Paralytic; 6 February 2020, 15:51.

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        #4
        Originally posted by Paralytic View Post

        What they are likely to do is give notice, which is what you want anyway. What is their notice period for you? If 1 week, perhaps delay delay giving notice for a bit.
        It's 30 days in both directions.

        The agent is busy this afternoon (probably talking to other fellow contractors about this cr4p) but I will see what they say about getting out.

        Thanks for your comments.

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