HELP, I'm new and think I have been overcharged HELP, I'm new and think I have been overcharged - Page 6
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  1. #51

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    Quote Originally Posted by LisaContractorUmbrella View Post
    Actually no, I think that this legislation is pretty unambiguous on this point to be honest
    The only reason I have learned a little about AWR recently is that I have just completed a piece of consultancy work for a large client to implement changes to their procurement and HR departments to ensure compliance. This involved examining the impact of the regulations across the temporary workforce supply chain which included Client - Agency - Umbrella relationships, contracts and engagements in that space.

    So quick question as its of interest to me.....Does your organisation make a deduction from the contract revenue you get from the agency and keep hold of it until it's due to the employee? I can't see what other option you'd have if an agency mandated the Swedish Derogation to you?
    Last edited by LottoPlayer; 28th October 2011 at 13:14.
    No, its not a banana in my pocket

  2. #52

    Umbrella Queen

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    Quote Originally Posted by LottoPlayer View Post
    The only reason I have learned a little about AWR recently is that I have just completed a piece of consultancy work for a large client to implement changes to their procurement and HR departments to ensure compliance. This involved examining the impact of the regulations across the temporary workforce supply chain which included Client - Agency - Umbrella relationships, contracts and engagements in that space.

    So quick question as its of interest to me.....Does your organisation make a deduction from the contract revenue you get from the agency and keep hold of it until it's due to the employee? I can't see what other option you'd have if an agency mandated the Swedish Derogation to you?
    No we don't. And an agency cannot mandate SD - that is determined by the contract of employment that the umbrella company has in place. All compliant umbrella companies should operate under an overarching contract of employment and, as evidence of mutuality of obligation (as required by HMR&C - see Clarke v Oxfordshire Health Authority) they are required to make a provision for payment between assignments, a fundamental requirement within section 10. Essentially umbrella companies were already operating under SD long before the legislation was introduced - IMHO that is why section 10 was included.
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  3. #53

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    Default Hidden Employment Costs

    You are lucky pal, I have been stung in the first month nearly £900 on employment costs. sent about 10 emails to parasol about it and they come back 2 days later with a chapter they have pasted out of some guidance document, no one has really justfied what employment costs are and how they are going to take this off me every month, they like to dress things up so it doesnt sound that bad, trust me £900 a month is bad.

    someone said that its to cover for sick pay, as if im going to take the statatuory sick pay at that rate, give me my £900 back and i will use that if I need "sick pay".

    still waiting on answers from them now, I keep dreaming.

  4. #54

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    Quote Originally Posted by skillmaster22 View Post
    You are lucky pal, I have been stung in the first month nearly £900 on employment costs. sent about 10 emails to parasol about it and they come back 2 days later with a chapter they have pasted out of some guidance document, no one has really justfied what employment costs are and how they are going to take this off me every month, they like to dress things up so it doesnt sound that bad, trust me £900 a month is bad.

    someone said that its to cover for sick pay, as if im going to take the statatuory sick pay at that rate, give me my £900 back and i will use that if I need "sick pay".

    still waiting on answers from them now, I keep dreaming.
    Statutory sick pay, and maternity pay come to that, should be a cost to business and should not be deducted from the individual so that may be incorrect information that you have received - what was the guidance document you mentioned, HMR&C have millions of them
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  5. #55

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    I'm a little confused by the changes which have been made. I have been contracting now for a year with Parasol in the same post. Recently I worked longer hours than usual almost 10 hours more than I would usually work in a week however my pay was the exact same figure down to the penny as I would have gotten from working my regular hours. Also I know that I have expenses in my account which aren't being used.

    I've contacted Parasol and they said the pay was less than expected because the extra hours I worked were fully taxed, which is understandable and also that PBA is tax deductable, however in my payslip I notice that no expenses have been applied to my pay to offset the tax I pay.

    I have no idea why they have stopped applying my expenses and all the correspondence I have recieved from Parasol is a brief explanation of what items are taxed in my pay and advice to claim back my unpaid expenses from HMRC. I thought the reason I was paying parasol £27.50 per week was to take care of all of this for me. Apparently not.

  6. #56

    Should post faster


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    Quote Originally Posted by skillmaster22 View Post
    You are lucky pal, I have been stung in the first month nearly £900 on employment costs. sent about 10 emails to parasol about it and they come back 2 days later with a chapter they have pasted out of some guidance document, no one has really justfied what employment costs are and how they are going to take this off me every month, they like to dress things up so it doesnt sound that bad, trust me £900 a month is bad.

    someone said that its to cover for sick pay, as if im going to take the statatuory sick pay at that rate, give me my £900 back and i will use that if I need "sick pay".

    still waiting on answers from them now, I keep dreaming.
    Hi Skillmaster

    Employment costs consist mainly of Employers’ National Insurance Contributions (NIC) but they also include amounts to cover your insurance costs, as well as enough funds in order to pay you should you be on sick leave or maternity leave etc.

    The rate of Employer’s NIC is currently 13.8% of earnings above £136 per week.

    At Parasol we calculate employment costs to be 13.8% of the invoice value we raise for your work, minus our margin and the NIC free amount of £136 per week. For example, if we raise an invoice for your work of £1,000 a week, the employment cost will be calculated as follows:

    £1,000 - £27.50 Parasol margin - £136 NIC free allowance = £836.50



    So in the example above the employment cost is £101.44

    You can see the amounts we retain outlined in the ‘Pay in Detail’ section of your payslip. For anyone that was with us before we introduced the new payslips this would have been listed as Employers’ National Insurance on the actually slip.

    When you get a minute can you email me your personal details to steven.proud@parasolgroup.co.uk please and include a couple of times when you are free today. I will make sure a senior member of our ops team gives you a call to go through this in more detail.

    Hope that helps

  7. #57

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    Quote Originally Posted by Truth View Post
    I'm a little confused by the changes which have been made. I have been contracting now for a year with Parasol in the same post. Recently I worked longer hours than usual almost 10 hours more than I would usually work in a week however my pay was the exact same figure down to the penny as I would have gotten from working my regular hours. Also I know that I have expenses in my account which aren't being used.

    I've contacted Parasol and they said the pay was less than expected because the extra hours I worked were fully taxed, which is understandable and also that PBA is tax deductable, however in my payslip I notice that no expenses have been applied to my pay to offset the tax I pay.

    I have no idea why they have stopped applying my expenses and all the correspondence I have recieved from Parasol is a brief explanation of what items are taxed in my pay and advice to claim back my unpaid expenses from HMRC. I thought the reason I was paying parasol £27.50 per week was to take care of all of this for me. Apparently not.

    Hi Truth

    If you PM me your details or email me directly I'll look into this for you. my email is steven.proud@parasolgroup.co.uk

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