Stitch-Up by Umbrella?

**pr1** · 27 July 2015, 12:23

is the 8k still in your business now? if not where did it go?

**LisaContractorUmbrella** · 27 July 2015, 12:24

Were you using a proper umbrella company or were you using a tax avoidance scheme?

Did your tax code change in April 2005?

Did you claim a large amount of expenses?

Did you provide the umbrella company with a P45 when you joined them or did you fill in a P46?

What was your accountant's explanation? Could they have made an error?

**northernladuk** · 27 July 2015, 12:34

What was your situation client wise? Was your last gig as umbrella a long one? Did you swap mid client? Was the new client in the same area as the last umbrella gig?

I am wondering if there has been a hiccup over expenses and permanent place of work here.

**NotAllThere** · 27 July 2015, 12:39

Surely either you were working through your ltd-co or you were working through a brolly. It seems you were using a brolly to run your ltd-co which is an entirely different kettle of sea dwelling fauna.

**VectraMan** · 27 July 2015, 12:51

Originally posted by NotAllThere View Post

It seems you were using a brolly to run your ltd-co which is an entirely different kettle of sea dwelling fauna.

Certainly sounds like one of those schemes, and probably the new accountant reckoned you'd been paid £8K of dividends more than you would have got under however they calculated things.

**tractor** · 27 July 2015, 13:34

....

Originally posted by SqueakyClean View Post

Hi all,

Firstly - I'm a newbie and a lurker for all of 2 hours before joining - hello all! Great site here - got everything - comedic put-downs and everything but all done without malice and in good taste - I'm in!

So, back in 2004/2005 I first started contracting using an Umbrella. I fell out with them over something (probably very stupid) I can't remember what though. So I go the Ltd company route and get an accountant, and a change of name for the COI. Long story short, the accountants request all relevant accounts documentation from said Umbrella, which they duly provided. A month later I get a call from accountants saying that after reviewing my current financial situation, I owe my business £8000. I could never understand then (and now) how I could owe that much money when the Umbrella controlled what they paid me. in my ignorance and naivety, I paid up as I could not prove otherwise. This whole episode has been niggling me for the past 8 odd years - I begrudge all the hassle/red tape that is part and parcel of running a one man PSC, so paying additional money through possible no fault of my own makes me wanna puke just thinking about it.

I'm looking for advice on what could have happened - yes I have already had the conversation with my accountants, but they could not throw any light on it back then, and oh yes it's over 6 years ago so should I just 'get over it' or is there a way forward?

Thanks

Squeaky

I know it was 8 years ago, but at the time when you were so shocked at that figure and asked the new accountant why? What did they say?

**SqueakyClean** · 27 July 2015, 13:42

Originally posted by NotAllThere View Post

Surely either you were working through your ltd-co or you were working through a brolly. It seems you were using a brolly to run your ltd-co which is an entirely different kettle of sea dwelling fauna.

From what I can recall, and yes I understand ignorance is not an excuse, It was an umbrella company called Orange and Gold (and by naming them does not infer negligence or liability on their part). Now they way they worked was that they set up a Ltd company called SPRO59 - they must have as I have a COI name change from that name to my current Ltd company name. What was bizarre (seemed so then) was that (as I recall) They opened up a RBS account for me not long after me joining them - apparently they did this for all their contractors i.e. flogged them to RBS for a commission no doubt. Strange thing is I had access to this account but I did not have control over it - it was in the umbrella's name. I retained the RBS account after moving to my own Ltd company name after leaving O&G, however, I have moved banks recently, never have I had to deal with such a shower of incompetent sh*ts as them! Awful customer service.

As mentioned I have let it go but now I am starting to take a lot more interest in my finances rather then just relying on my accountants to smooth everything out, as im really concerned about IR35 and April 2016 and what implications both will have on my personal income.

I hope that has provided answers to all your questions. I have asked my accountants just now to provide more info on where that 8k went i.e. what was it propping up.

Squeaky

**SqueakyClean** · 27 July 2015, 13:46

Originally posted by tractor View Post

I know it was 8 years ago, but at the time when you were so shocked at that figure and asked the new accountant why? What did they say?

I could not explain it to the accountants as I did not know what the hell was going on. I could not account for where the 8k went as much as they could..........

**SqueakyClean** · 27 July 2015, 13:51

Originally posted by northernladuk View Post

What was your situation client wise? Was your last gig as umbrella a long one? Did you swap mid client? Was the new client in the same area as the last umbrella gig?

I am wondering if there has been a hiccup over expenses and permanent place of work here.

I think I may have had a few short term contracts through them, and no the last one was only 3 months, I could have swapped in between contracts - the parting was not amicable......don't ask me what happened - can't recall

Stitch-Up by Umbrella?