If anybody can recommend a company that can provide information on contractor law and IR35 in particular would be great!
In the process of getting my agency to issue me with a new contract when my current one expires. Which as seems to be the norm has been blanket assessed as being inside...
Now what I am struggling to understand, is that my agency has offered me the option of either having an OPW suitable contract issued to my limited company or to move to an umbrella company.
If I chooe payments to be made through a PSC, then to quote "your pay rate will be recalcuated to account for the employers and apprenticeship levy, and the employer tax and NI will be deducted from monthy invoice". Kind of get that as guessing it means the agency do my NI/PAYE caculations and I get a net payment after tax to my limited company. So can then issue a wage, tax already having been deducted at source.
What I don't get is that the agency is saying not my employer, even though they are doing the tax calculations and deductions? There respone being "if you were to remain via a PSC the contractual relationship would be end-client to agency, agency to PSC. Therefore agency pay the PSC, not an employer. Tax liability lies with your PSC"
My confusion isn't around my tax getting deducted at source, is fne. What I am struggling to understand is how can the agency if they are doing the payroll (which by doing those deductions at source is surely the case?) not be my employer? I do not want to be liable if the agency screw up my deductions since I have had no control over that apart from my accountants when reviewing the company's accounts highlighting a potential issue, Nor how holiday and sickpay would work since the agency make the deductions but have no responsiblity as not employed by them?
I feel may just be easier to accept payments through an umbrella company as that relationship makes sense to me, this just confuses the hell out of me!
In the process of getting my agency to issue me with a new contract when my current one expires. Which as seems to be the norm has been blanket assessed as being inside...
Now what I am struggling to understand, is that my agency has offered me the option of either having an OPW suitable contract issued to my limited company or to move to an umbrella company.
If I chooe payments to be made through a PSC, then to quote "your pay rate will be recalcuated to account for the employers and apprenticeship levy, and the employer tax and NI will be deducted from monthy invoice". Kind of get that as guessing it means the agency do my NI/PAYE caculations and I get a net payment after tax to my limited company. So can then issue a wage, tax already having been deducted at source.
What I don't get is that the agency is saying not my employer, even though they are doing the tax calculations and deductions? There respone being "if you were to remain via a PSC the contractual relationship would be end-client to agency, agency to PSC. Therefore agency pay the PSC, not an employer. Tax liability lies with your PSC"
My confusion isn't around my tax getting deducted at source, is fne. What I am struggling to understand is how can the agency if they are doing the payroll (which by doing those deductions at source is surely the case?) not be my employer? I do not want to be liable if the agency screw up my deductions since I have had no control over that apart from my accountants when reviewing the company's accounts highlighting a potential issue, Nor how holiday and sickpay would work since the agency make the deductions but have no responsiblity as not employed by them?
I feel may just be easier to accept payments through an umbrella company as that relationship makes sense to me, this just confuses the hell out of me!
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