Temp Agency Question
Discussion
Have done a search on here but found nothing.
My father in law is a lorry driver and is currently working for an agency as a temp. Recently they contacted him to say that he could increase his take home pay if he transferred to being an employee of a company called JSA who would allow him to claim part of his wages as expenses and therefore not pay any tax on them. Apparently he can claim mileage to and from work (at usual 40p/mile), lunch costs (£7.50 per day) and late working costs (£15 per day). He would have to pay a fee to them but he would still take home significantly more money. Is this all OK? seems strange that if you can do this why everybody doesn't do it, my natural cynical mind suggests that if it's too good to be true then it probably is!
JSA have a website http://www.jsagroup.co.uk/
Any advice would be greatly appreciated!
My father in law is a lorry driver and is currently working for an agency as a temp. Recently they contacted him to say that he could increase his take home pay if he transferred to being an employee of a company called JSA who would allow him to claim part of his wages as expenses and therefore not pay any tax on them. Apparently he can claim mileage to and from work (at usual 40p/mile), lunch costs (£7.50 per day) and late working costs (£15 per day). He would have to pay a fee to them but he would still take home significantly more money. Is this all OK? seems strange that if you can do this why everybody doesn't do it, my natural cynical mind suggests that if it's too good to be true then it probably is!
JSA have a website http://www.jsagroup.co.uk/
Any advice would be greatly appreciated!
997c2scab said:
Correct this is legal... For the moment anyway due to loop holes etc
He will be classed as IR35.
Tell him to ask the agency for an increase on his hourly rate also as they will be saving money on his employees National Insurance at 12.8%
IR35 doe NOT apply to individuals.He will be classed as IR35.
Tell him to ask the agency for an increase on his hourly rate also as they will be saving money on his employees National Insurance at 12.8%
It appears that he would be just a normal PAYE employee with a higher proportion of his income being deemed to be an expense claim rather than a "wage".
This particular tack is HIGHLY dubious as the HMRC rules applicable to expense claims for employees are EXTREMELY restricted. Travel to and from work is normally NOT allowed. The question arises as to where his "place of work" is actually located and that is probably this so called "loop hole" that his employer is trying to exploit.
I reckon that there is actually no loop hole and they are just deliberately misinterpreting the regulations.
Edited by Eric Mc on Friday 22 January 17:29
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