Reply To: seafarers earnings deduction, taxman headache

Buffel & Numpty
Nothings changed in my circumstances despite correspondance arguing my case with HMRC, the Accountants state sit it out their trying it on.
Despite arguing all the pros & cons that I should be treated as an employee for tax purposes and HMRC stating that the argreemet between Agency & PAYE worker being an "unofficial administrative procedure" and NI contributions should not have been deducted by them. It has come to my attention that some agencies had an agreement in writing from a local tax office where they are allowed to deduct employers NI on behalf of the worker then operate a PAYE system.
This could be the trump card but I as like you have spoken to my union. I also have not caved into payment demanded by the HMRC, but as the issue cannot be treated as an individual case i’ll see what happens for now. I believe investigations by the HMRC are going further.
But if I was a PAYE agency worker for any great length of time claiming SED i’d be worried, fortunately for myself I only worked PAYE through an agency for about 15 months so the SED in question for that time is not a great deal, but i’m glad I chose to work direct as staff a few years ago & didn’t stick too long with an agency.