Agency charging me fees i was not told about!

21LoveLondon · 27 November 2017 at 3:17PM

Please help, I need your advice!

I had two job interviews with different agencies offering similar pay. I went for the job that was closer to home.

I am PAYE and on an hourly rate, weekly paid.

I received my payslip and found that the agency have taken company deductions from my wage, such as HMRC Payment NIERS, Apprenticeship Levy, Management Company Margin and the standard NI and tax.
I wasn't informed of the additional charges when I accepted the role so it works out that I'm on a lot less money.

I spoke to my agent and they said that there's nothing they can do about it, I have to accept these charges.

They use a payroll company to sort out the wages.

They have offered to get the payroll company to register me as self employed as I will then have more take-home pay. I don't think this is right! I am sure that I should only be paying the tax and the National Insurance and nothing else. Surely they should be honouring the hourly rate offered to me?

I have lost out to the other job that was a very definite rate without any hidden fees. I feel like I have been cheated. I'm so upset. I no longer trust or want to be represented by this agency.

I am really enjoying the place of work and want to stay with them.

Can anyone offer me legit advice on my rights, what can be done?

Many thanks Jane

Gazzafatcityboy · 27 November 2017 at 3:43PM

Hi there,

Surely it has to be in your contract? I would check it with a fine tooth comb first to see where these charges come in. If you register as self employed it will be more hassle and dependent on how much you earn it might not be worth it. I setup my own limited company before which was really good but only if you earn enough.

G

NBLondon · 27 November 2017 at 3:46PM

When you say agency - do you mean a recruitment agency who placed you in a job or a temping agency which is your legal employer and then sells you on to the actual workplace? I suspect it's the latter. It may be in the small print of when you signed up with the agency that the headline rate of pay on the job advert is not necessarily the takehome but they are looking a bit dodgy about it.

Apprenticeship Levy

That looks iffy for a start! The employer pays that not the employee! Plus it's only payable if the total payroll is over £3M so unless the agency is a big name national operator - they won't be paying it.

How long have you been at the workplace employer? If you like them and they like you - find out quietly whether they might want to take you on directly. It will usually cost them a fee to the agency but it might be a long-term better deal for both sides.

ceh209 · 27 November 2017 at 4:28PM

I'm just wondering - have they put you in an umbrella company?

21LoveLondon · 27 November 2017 at 5:23PM

Thank you G
It was a registration form that i filled out and signed. The Agency is Madigan Gill which does deal mainly with self employed people, but in my case the agent said i was employed.
I'm in an admin role so definitely don't earn enough money to consider being self employed.

Gazzafatcityboy wrote: »

Hi there,

Surely it has to be in your contract? I would check it with a fine tooth comb first to see where these charges come in. If you register as self employed it will be more hassle and dependent on how much you earn it might not be worth it. I setup my own limited company before which was really good but only if you earn enough.

G

21LoveLondon · 27 November 2017 at 5:36PM

Thankyou NBLondon
I put my CV on CV Library and the recruitment agency Madigan Gill contacted me with the role. I've only been working there 2 weeks.
Everything was discussed over the phone and in email but it was only a registration form I completed and the payroll contractor form with my bank details.
The terms and conditions were relating to contractors / sub contractors. But because I'm classed as PAYE I assumed I was employed by the agency.
I'm in a admin role and don't think I earn enough money to benefit from registering as self employed...

21LoveLondon · 27 November 2017 at 5:43PM

ceh209 wrote: »

I'm just wondering - have they put you in an umbrella company?

Thankyou ceh209,
I'm sure they haven't put me under an umbrella company. I think the agency is a relatively small (Madigan Gill) they don't even have a payroll department.

Samsung_Note2 · 27 November 2017 at 6:02PM

21LoveLondon wrote: »

Thankyou ceh209,
I'm sure they haven't put me under an umbrella company. I think the agency is a relatively small (Madigan Gill) they don't even have a payroll department.

It sounds like they have..easy to check,what company name is on your payslip.

If Madigan Gill is a small firm then yes chances are they will use an umbrella company esp as you say they normally deal with self employed people.

21LoveLondon · 27 November 2017 at 6:11PM

I'm looking at my payslip, and you're right, its PAYE Umbrella Glenlee Ltd, but the company Madigan Gill are still classed as the company name... confusing!

Samsung_Note2 · 28 November 2017 at 9:28AM

21LoveLondon wrote: »

I'm looking at my payslip, and you're right, its PAYE Umbrella Glenlee Ltd, but the company Madigan Gill are still classed as the company name... confusing!

If your PAYE then as i understand it you should pay your Tax (if applicable) and NI,then pension if enrolled as a base.

If UTR then they deduct your pay your tax and NI along with employers NI..and then either a % of wages (thats how last payroll company had us paying there fee) or a fixed amount each pay.

Could even make you a principal of a LTD company and not mention it to you..had that last year and despite asking was fobbed off,until after the Tax law changed and found out i was one of nearly 7000 principals.

Some agencies will own or have close ties to Umbrella companies,that way they get your money twice over,not sure if its been changed now but was common in the construction industry agencies would have a sister company or insist on using only a choice of who they tell you to use.

21LoveLondon · 29 November 2017 at 1:01PM

Thank you everyone,
I've decided to go to Citizens Advice Bureau and see if they can help me, it's just too confusing!

Agency charging me fees i was not told about!

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