Matt
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- Reaction score
- 5
A few years back, the Inland Revenue wrote to the Agencies in regards to false self employment.
Basically they told the Agencies that if it turned out they were paying workers a self employed when they should be treated as employed, the Agencies would have to pay any tax and NI owed.
Most of the Agencies then decided everyone would be PAYE or Ltd. they didn’t want to risk being caught out.
Some Agencies continued to pay CIS, and those are the only ones I will work for.
I did get caught out at the start, I started work for an Agency just before the new tax year, as far as I was concerned being paid CIS. However when I got paid I had been charged tax, NI and employer’s NI contribution.
I refused to sign the new contract the Pay Roll company wanted me to sign. The existing contract said I would be paid CIS.
Eventually I left to work for an Agency which would pay CIS.
At the end of the Tax year I just declared the deductions made as CIS tax paid.
The Pay Roll company told me it was up to the Agency to decide whether I was PAYE or CIS. Strange as I was the one paying the Pay Roll company a fee for them to pay me, not the Agency.
I asked who was employing me, apparently no one.
I never agreed with anyone to be paid PAYE and strangely, I never received a P45 or P60 detailing any of the tax or NI deductions.
Is it possible for you to suggest some companies that use CIS instead of Umbrella or CIS Umbrella?