Advice regarding this..

[rimarj]

Its hard to word this correctly so i apologise it all sounds a bit back and forth / repeated.

I work for a security firm, for the last few years its just been self employed, everyone does their own tax etc at the year end. We however dont invoice the security company who "employ" us, we are contracted to them, but we get paid from another company (Amber pay).

 

There recently was the budget released making changes to the uk etc, and now we have been told that under new legislation, we have to sign new contracts saying amber pay are going to pay our tax and national insurance - yet we can still claim back on expenses. It seems they are trying to take the best of both worlds of PAYE and self employed - paye for tax and NI purposes, self employed for not having to pay holiday and sick pay and other benefits?

 

Apparently people in the same industry havnt heard much about this, but to me it sounds like something isnt quite right? For example DJ's to a nightclub are contractors, they get paid as normal and are self employed, the club isnt in charge of paying their tax and national insurance, yet we are contractors for security and are being told the company paying us now has to pay our tax and ni, but we are still self employed?

 

Sounds a bit like an umbrella company type of thing? Surely we should have the option to go either PAYE or Self employed, not a mixture of both?

 

Its a bit of a pickle.. I fill in everyones hours worked, they get faxed off to the security office, who then pass the hours on to amber pay, who then pay us.. Any help? :/

[caro]

Do they state what the new legislation is?

 

 

There's info here on employment status http://www.hmrc.gov.uk/employment-status/

 

 

If this doesn't clear it up you could try a call to HMRC for clarification.

[rimarj]

Apparently the legislation was something to do with being self employed but mostly working at the same place for the same person which sometimes can be classed as an employee - however no one is on a contract, they can have time off whenever they wish etc etc, so there are elements of both..

 

But it has come to light that we can just invoice the original company instead of going through amber pay which kind of contradicts everything again?!

[Crapstone]

Just been through all this and it's easier and more beneficial to start as a limited company, (even on just a personal level) than stay as self employed or PAYE. Look for a good accountant and not one that wants to sign you up for VAT or still take CIS Tax!

[caro]

Just been through all this and it's easier and more beneficial to start as a limited company, (even on just a personal level) than stay as self employed or PAYE. Look for a good accountant and not one that wants to sign you up for VAT or still take CIS Tax!

 

CIS is the Construction Industry Scheme. There are circumstances where HMRC don't allow contractors to opt out of it but the OP works in security so CIS shouldn't come into it.

[Crapstone]

CIS is the Construction Industry Scheme. There are circumstances where HMRC don't allow contractors to opt out of it but the OP works in security so CIS shouldn't come into it.

 

 

 

It's still the same issue as the CIS scheme is changing and you can't claim as self employed as previous and being paid through an umbrella company. The same thing would apply to the OP. As they have said it's hard to describe and complicated unless you are in the situation and understand what's happening. It's across the board so it doesn't matter if the OP is SIA or CIS. The purpose is to stop false self employment claims through agencies and try to move workers to PAYE where they can be closer tax monitored and regulated.

 

OH works in same place, no contract and self employed. He now invoices the company direct as a Ltd. company and it's made a difference in actual earnings compared to previously and what we can claim back is much higher.