Worries

Has anyone done any work for an agency called Dk associates? My worry isn’t with the agency, they really are one of the better ones, my worries are with Contrella, the accountants they use. I get my wages on a Friday, every time, but I get all of my wages, minus a tiny bit of ni. I’ve not paid a penny tax while I was working for them. Am I headed for trouble if I keep working for them?

Yes, if you aren’t paying tax then you could be headed for a massive tax bill if your name gets hit by HMRC.

Thanks radar, you just confirmed what my gut was telling me. They have just txt me offering me 17 quid an hour for 6 hours work tomorrow, paid for 10. My dodgy detector is doing overtime. I was tempted to do it for easy money, but I don’t want a potential nasty surprise from the tax man.

Surely if you’ve just been paid £170 for six hours work - then just volunteer to pay the tax on it, and you’re still quids in hour-for-hour compared with so-called “competitive” PAYE rates… Even if you deducted the full third - you’re talking about taking home around £120 which is £20ph NET. :confused:

It’s like Umbrella fees… If the SE Hourly rate is HIGH enough - it IS worth paying the fee… It’s not worth paying the fee just to access “ordinary” hourly rates though.

I wouldn’t even know how to start with the se side of things and I think I am being inadvertently paid as se because class 2 is 12.50 per hr flat rate and 17 quid an hour for Sunday. I think Contrella have somehow mistaken me for Ltd, that rate is way over the average rate for class 2 paye around here.

This must be a first for trucknet, a driver moaning he is paid too much :slight_smile:

Do the work…

Take the money and keep 33% back to cover when and if you get hit with a bill from HMRC.

All they’ll want is what they’re owed plus some interest. As long as you put your hands up and pay what they want they’ll leave you alone.

I must say it’s a rather odd arrangement.

jbaz73:
Has anyone done any work for an agency called Dk associates? My worry isn’t with the agency, they really are one of the better ones, my worries are with Contrella, the accountants they use. I get my wages on a Friday, every time, but I get all of my wages, minus a tiny bit of ni. I’ve not paid a penny tax while I was working for them. Am I headed for trouble if I keep working for them?

I wouldnt say heading for trouble just yet mate, ring the accountant first, ask them what they have you down as, if it is self employed, then depending how long you been with them since, you could potentially sort it in this tax year, plus if you have been in employment in a company where they sort your tax within this tax period, an half decent accountant could counteract that tax you paid with the tax owed from being SE, but as advised still take the work just save a percentage back for tax until advised otherwise

bristolrob:

jbaz73:
Has anyone done any work for an agency called Dk associates? My worry isn’t with the agency, they really are one of the better ones, my worries are with Contrella, the accountants they use. I get my wages on a Friday, every time, but I get all of my wages, minus a tiny bit of ni. I’ve not paid a penny tax while I was working for them. Am I headed for trouble if I keep working for them?

I wouldnt say heading for trouble just yet mate, ring the accountant first, ask them what they have you down as, if it is self employed, then depending how long you been with them since, you could potentially sort it in this tax year, plus if you have been in employment in a company where they sort your tax within this tax period, an half decent accountant could counteract that tax you paid with the tax owed from being SE, but as advised still take the work just save a percentage back for tax until advised otherwise

Thanks for the time and advice all. I’m going to take the job and ring contrella on Monday to see if I can’t find out exactly what’s happening.

I would suggest ring them, and also send emails repeating the queries to show HMRC later, so they can see you’re trying to get it sorted.

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Franglais:
I would suggest ring them, and also send emails repeating the queries to show HMRC later, so they can see you’re trying to get it sorted.

Sent from my GT-S7275R using Tapatalk

^^^ yep, conversations are easily ‘forgotten’.

jbaz73:
Has anyone done any work for an agency called Dk associates? My worry isn’t with the agency, they really are one of the better ones, my worries are with Contrella, the accountants they use. I get my wages on a Friday, every time, but I get all of my wages, minus a tiny bit of ni. I’ve not paid a penny tax while I was working for them. Am I headed for trouble if I keep working for them?

How much do you earn? You’ll not pay a penny in income tax until you’ve earned over an average of £221 a week (annual personal tax free allowance split over 52 weeks) and even then that is an average so if you earend £110 one week then £332 the following week you’d still not pay any income tax because the average over the 2 weeks is less than £221 per week.

This averaging continues throughout the year and is calculated every time you get paid. This last Friday was in pay week 17 so by this weeks pay you can have earned 17/52nds of the personal tax free allowance without paying any income tax. Total tax free pay you can earn to date as we’re in week 17 is:

£11,500/52=£221.15 a week tax free.
17 x £221.15=£3759.55, the total you can earn to this week without paying tax.

On your last wage slip will be an entry which says “Total Taxable Pay”. If that amount is £3759.55 or less then you’re not liable for income tax to date.

NI is paid at a rate of 11% on income above £138 a week regardless of what you’ve earned so far this tax year.

If you’re still unsure and would like me to work out what income tax you should have paid so far please PM me what the total taxable pay line says on your wage slip for this week.

jbaz73:
I wouldn’t even know how to start with the se side of things and I think I am being inadvertently paid as se because class 2 is 12.50 per hr flat rate and 17 quid an hour for Sunday. I think Contrella have somehow mistaken me for Ltd, that rate is way over the average rate for class 2 paye around here.

Way over the rate for Class 2 jobs or way over the rate for class 2 on agency? I ask this because agency usually pays more due to the fact it is temporary work at short notice with the high probability you’ll work fewer hours on average over a year and that benefit of flexibility to a haulage company has a price attached. They can’t expect to pay the same rate for that flexibility as they do their full time drivers. When I went into Reed Boardall on agency some years ago my basic rate on PAYE with the agency was more than their overtime rate was. At Howdens Joinery when I was on agency we used one of Keedwells yards for spare trailer park capacity last October. Talking to one of Keedwells drivers my PAYE rate on agency was £3/hr more than theirs was.

yourhavingalarf:
Do the work…

Take the money and keep 33% back to cover when and if you get hit with a bill from HMRC.

All they’ll want is what they’re owed plus some interest. As long as you put your hands up and pay what they want they’ll leave you alone.

I must say it’s a rather odd arrangement.

Very much this ^^^^^. Keep the 33% in a high interest account that you cannot immediately access and you may be in the enviable position of being able to pay the inevitable bill with a smug smile, plus as a benefit you may actually have saved more than they ask for and therefore find you have a nice bonus too.

Of course to do this requires a certain amount of discipline.