Can an individual simple work off payroll for an agency without his/her PSC or umbrella company?
My client is currently working off payroll to an agency via his PSC but no point keeping the company now. The agency says he can simple work off payroll without using an umbrella company or PSC. Is this possible? What would be the status of my client? He has no contract with the agency. He would be simple a worker
thank you
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Can the agency be forced to employ him?
Apparently not. I don’t know the ins and outs of the rules but the agency shouting “off payroll” is meaningless. The facts need to be examined to determine the correct tax and employment law position.
The agency can say he is working off payroll all they like. Whether he is actually working off payroll is another matter depending on the facts.
There no such thing as "simply a worker". In broad terms they are likely to be employed or self-employed.
It is also fairly unlikely he does not have any contract with the agency. The agency isn't just randomly pulling people off the street and pushing them towards customers. There must be some agreement on your client agreeing to the agency putting them forward for work as a bare minimum.
Can an individual simple work off payroll for an agency without his/her PSC or umbrella company?
No. If no PSC or umbrella company, and worker is being paid by agency, s/he is almost certainly an employee of agency. Which means they must operate PAYE and pay holidays
My client is currently working off payroll to an agency via his PSC but no point keeping the company now.
If client is working through PSC, why do you say no point? Do you mean the job is inisde IR35 and therefore host company is deducting PAYE?
The agency says he can simple work off payroll without using an umbrella company or PSC. Is this possible?
No. See above
What would be the status of my client? He has no contract with the agency.
There may be no written contract but there is contract. In the absence of a document, the law imputes certain terms. I recommend guidance here https://www.citizensadvice.org.uk/work/rights-at-work/
That's a rather clearer explanation than in the OP. I'm not an employment lawyer, but afaik, the employment rights of those working inside IR35 are unresolved.
My opinion is that Client should look to be hired by host company as regular employee.
Agency is right, btw. Off payroll, yes. Sort of. But outside tax, no.
Depending on the circumstances he can be self employed which is, I'm guessing, what the agency means. In effect he will therefore be operating as a sole trader.
Is your client within IR35 at the moment?
The agency is talking gobbledegook.
If he is within IR35 now, then he'll be within IR35 whatever they do. They should just employ him and have done with it.
isn't it better to be off payroll using your PSC rather than within IR35 using your own PSC as under the former the client is responsible and liable for Class 1 secondary (ers) contributions?
I'm puzzled (although that may be due to end of long day) ... but OP said in an early response "Currently my client is working through his PSC via the agency and he is in IR35. He has only 1 end client and he has been working for them for a long time."
So the simplest solution (and what would make HMRC deliriously happy) would be for client to become an employee - but of the 'end client' not of the agency. This may not be an option but would be the simplest (and would serve the agency right)!
Leaving aside all the (interesting) issues surrounding employment rights etc, it's hard to see what benefit would accrue to client via being employed by the agency (who patently have no intention of offering this anyway).