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Sam, Accountant
Category: Tax
Satisfied Customers: 14154
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Good morning I am a Ltd company with a registered UTR number

Customer Question

Good morning I am a Ltd company with a registered UTR number I have until recently been working on a site here in Chelmsford under an agency called Fomac
Fomac are insisting that I come under their umbrella company for any further payments for time worked on site (I have been deducted 20% of my earnings at source by Fomac)
They are constantly phoning me to sign documents (which I cant open on my computer to sign if agreed) I am on the other hand are telling them that Im registered Ltd company with a registered UTR number (20%) and they are refusing to forward me monies earned last week until I sign these documents
Please inform me what is the law as of the 5th April 2015 regarding this ???
regards ***** *****
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.

Hi Liam

Thanks or your question

In this instance this work you are undertaking sees you both being wrong, as were it not for this umbrealla company they insist on OR your limited company, you would in fact be their employee and should be paid (with tax and National Insurance deducted) under PAYE. (You would not be CIS as you are not working dicretly for the contractor - but the third party agency)

This is due to the fact that this breaches employment lstatus legislation - for which I add link above and may also breach IR35 legislation

And so many employment agencies are breaking the law themselves and also that of the workers they engage

I would remin refusing to sign the documents and state that unless they pay you, UNDER PAYE you will take the matter both to ACAS (Employment law specialists link here

and approach HMRC to review their working practices.

If you need to speak to HMRC ring as soon after 8am or as close to 8pm with a better chance of getting through almost straight away

Let me know if you have any follow up questions on the information I have provided.