• IMPORTANT: Please note that nobody on this forum should be seeking from or providing advice to those who are not competent and / or trained and qualified in their field (local laws permitting). There is a discussion thread on this global industry-wide matter HERE. This also has more information about the warning with regards to sharing electrical advice in some countries. By using this forum you do so in agreement to this.

Discuss agency and cis in the Electrical Forum area at ElectriciansForums.net

Welcome to ElectriciansForums.net - The American Electrical Advice Forum
Head straight to the main forums to chat by click here:   American Electrical Advice Forum

R

rover v8

Shoot me down and point me in the the direction of the thread if this has already been dealt with. currently working through an agency and working as cis but have been now told that that due to hmrc changes agencies now have to take you on the cards or start up a ltd company to get paid direct. Now i am happy with the way it is at the moment so has any one got any ideas of how to get around this ? thanks
 
no have not spoken to hmrc but have got it confirmed by the agency and by my accountants as well. Only found out today so digging for more info and if there are ways around this as the agency are concerned as well that they will income cos people will not work for them.
 
Agree with Murdoch, if I were you, get on the phone to hmrc or speak to your accountant before you start worrying.
 
no have not spoken to hmrc but have got it confirmed by the agency and by my accountants as well. Only found out today so digging for more info and if there are ways around this as the agency are concerned as well that they will income cos people will not work for them.

I need to type faster
 
Going ltd sounds like hassle for a subbie Imo
 
It's because it is a nonsense to suggest that an employment business will actually permit a so-called "self-employed" worker to substitute themselves for someone else, as would be their right as a self-employed person. Needless to say this same nonsense also occurs when subbying for a firm not through an employment business.
 
I had this issue raised last month by a company I sub to.

They wanted my ESI reference number. This is an Employment Status Indicator number generated by HMRC which indicates if you are classed/eligible as Self Employed, or if you should be directly employed by the company. It's obtained online at the HMRC website by answering a few set questions about your employment terms and depending on the answers indicates if you are eligible as Self Employed or if you should be directly employed by the company. A unique reference number is generated at the end which you need to retain. I imagine should any agency or company you give this reference number to, and they go onto the HMRC website and enter it will get your Employment Status?

IMHO it should be up to the agency or company to obtain this ESI number! After all, they're in a better position to answer the questions which are quite specific as to how you will be engaged!!

I seem to remember reading or hearing something about this last year. I think it's to try and close some loopholes with the likes of agency's and some "shady" employers!

I could be completely wrong though?!!!
 
I imagine should any agency or company you give this reference number to, and they go onto the HMRC website and enter it will get your Employment Status?

"The tool cannot, however, be used to check the employment status of some workers:


  • company directors and other individuals who hold office
  • agency workers
  • anyone providing services through an intermediary (sometimes referred to as IR35 arrangements)"


After all, they're in a better position to answer the questions which are quite specific as to how you will be engaged!!

"You can rely on the ESI outcome as evidence of a worker’s status for tax/NICs/VAT purposes if both of the following apply:
  • your answers to the ESI questions accurately reflect the terms and conditions under which the worker provides their services
  • the ESI has been completed by an engager or their authorised representative (if a worker completes the ESI tool the result is only indicative)"

(Quotes from HMRC.)
 
The thing that really boils my wee abut this is that the government are owed billions by wealthy people who stash money overseas illegally and by massive companies who abuse loopholes to avoid paying what they should yet they go after the likes of us for what looks to me like £40 per person per week.
Admittedly that £40 pp pw will add up to a tidy sum but "We're on the side of hardworking families" my arse! That's just another hollow soundbite.
 
From a general search;

What is HMRC proposing?


From 6 April 2014, the agency rules will be changed so that all workers who provide their own services or who are involved in the provision of services to a third party under arrangements in which an “agency” is involved, will fall into the agency rules.
The “agency” will be treated as the employer of the worker and income tax and NIC will need to be paid via PAYE. The “agency” will only be able to pay gross if it can show that there is no supervision, direction or control of the worker by any person (i.e. that they are genuinely self-employed). If there is no evidence, it will have to operate PAYE. This significantly moves the goal posts. The agencies will also need to report to HMRC quarterly with details of any workers not subjected to PAYE/NIC and the reason for the agency not deducting tax.
 

Reply to agency and cis in the Electrical Forum area at ElectriciansForums.net

Electrical Forum

Welcome to the Electrical Forum at ElectriciansForums.net. The friendliest electrical forum online. General electrical questions and answers can be found in the electrical forum.
This website was designed, optimised and is hosted by Untold Media. Operating under the name Untold Media since 2001.
Back
Top