Agency deducting - legal?

Agency deducting - legal?

Didn't find your answer?

One of my clients worked temporarily for an agency just after being made redundant.  The agency outsourced their payroll and on the payslip my client received showed deductions for employers NI, Payroll admin fee and tax enquiry insurance contribution.  Is this legal?

Replies (3)

Please login or register to join the discussion.

avatar
By carnmores
02nd Feb 2011 18:04

agency employment is fraught with technical difficulties

everything will depend on the contract if any signed  - you can only make statutory deductions i believe from an employees pay - all other deductions have to agreed - i would suggest that payroll admin is possibly illegal and should certainly be paid by the agency; the tax enquiry fee is presumably some sort of premium to take into account that they have possibly not deducted income tax - this looks like a case for the DTI

Thanks (0)
avatar
By girlofwight
02nd Feb 2011 19:22

Contract
As the first respondent said it depends on contract.

The point about employment deductions isn't really relevant in so far as this isn't a true employment situation, it's an agency matter so statutory deductions are covered by employment law and other deductions by the service contract / SLA / agency agreement. Unless it's a real fly by night operation I suspect there is little here that can be challenged.

Thanks (0)
Nichola Ross Martin
By Nichola Ross Martin
02nd Feb 2011 19:42

Agency worker rules

The agency worker rules require deduction of PAYE and NICs, although there are a few exceptions. Trade via a limited company, then you avoid the agency rules, but still have to cope with IR35.

Virtual tax support for accountants and their clients: www.rossmartin.co.uk

 

Thanks (0)