I have been approached by a potential client who is a trucker. He works through an agency and is classed as self-employed, yet he is taxed at source. Something/one called Gpay have set him up as a LTD company.
Does anybody know who or what Gpay are and why they would have set him up as a LTD, I wouldn't have thought this was the best option for this individual? Obviously I will ask the client this question, but I thought some knowledge upfront would be beneficial to me.
Also this client is taxed at source, but this is obviously not part of CIS, so I don't understand why he would be taxed at source.
I actually had a job many years ago where I was classed as self-employed, but all my tax & NI was deducted and I was given a payslip. This confused me then and still confuses me now. Why do companies do this? Is this just a way to avoid giving you a contract and paying holiday etc?
Any advice would be very much appreciated.
Kind regards
Kerry
P.S: This forum is awesome! I have learnt so much from reading other posts and I just want to say thank-you :)
I had a bus driver who had to sign up to a similar set-up to get the job. He was paid mainly through dividends even though he was patently an employee under any test you care to imagine. For instance, he didn't own a bus.
One day the registered office disappeared off the face of the earth so I took over and did the annual return, p35 and all the necessary.
Like you, he received weekly payslips, but these were a nominal sum and listed expenses including the fee payable to the administrators of the scheme. For a short time this admin fee was listed as 'rent'.
Yes its to do with avoiding employment law and national insurance and it looks to me like the authorities don't want to pick a fight with these organisations.
Kerry - it appears he is being paid through an umbrella company - it is happening more and more with agency work these days. The agency pay the umbrella company (without having to pay employer's ni) the umbrella company pay the worker commission (or something such) on which tax employer's and employee's ni are payable by the worker they also pay a fee to the umbrella company which reduces their tax liability and they get paid tax free expenses. Allegedly this means the worker gets more money, the agency keep more and the umbrella company has an existence!!!
