Sub contractor having to pay a payroll company to be paid Sub contractor having to pay a payroll company to be paid - Page 2
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  1. #11

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    ladymuck is always on top

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    So many alarm bells!

    See if you can get some guidance from your local citizens advice bureau.

    I am struggling to see how you are considered self employed when the payroll company is behaving like an umbrella but I'm not familiar with all the models of operation out there.

    Based on what you've said, it sounds like there's potential for a scam here. It really doesn't feel right.

  2. #12

    Should post faster

    DolanContractorGroup is a permanent contractor

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    Quote Originally Posted by ladymuck View Post
    So many alarm bells!

    See if you can get some guidance from your local citizens advice bureau.

    I am struggling to see how you are considered self employed when the payroll company is behaving like an umbrella but I'm not familiar with all the models of operation out there.

    Based on what you've said, it sounds like there's potential for a scam here. It really doesn't feel right.
    Hi

    This is a pretty standard CIS affair. The payroll provider/umbrella is registered for 'gross status' and so can engage CIS subcontractors and pay them CIS wages.

    Paul C, this has been going on in the construction industry for a long time. If the contractor hasn't got the means to run payroll, they outsource it to an external party, but unfortunately fees will be charged. You should be getting pay statements though, detailing the breakdown of hours worked and the fee and taxes deducted.

    EDIT: Oh, and another thing, depending on the insurance policies the payroll provider has in place, their public liability and professional indemnity insurance should cover you even though you're self-employed.

    Thanks


    Zeeshan
    Last edited by DolanContractorGroup; 30th January 2020 at 10:23.

  3. #13

    Should post faster

    DolanContractorGroup is a permanent contractor

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    Quote Originally Posted by ladymuck View Post
    If they are performing the services of an umbrella company, I thought they were now obliged to provide those key information documents that give a detailed breakdown?
    This requirement applies to recruitment businesses, and will come into effect from 6 April 2020.

    There's ambiguity whether an umbrella employer is within scope of the legislation, but the consensus is that they aren't.

    Thanks

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