Understand your tax code when working via an umbrella!

[lucyclarityumbrella]

So let's explain a little bit about some of the tax codes:

1257L - this is the standard tax code for 2024/2025 and indicates that there is £12,570 for the year before taxes are due (please note this is done using thresholds on a weekly / monthly basis, not once the threshold for the year...

[lucyclarityumbrella]

They should be able to do a year end adjustment - probably just easier to put it back to you rather than using HMRC's adjustment tool

[lucyclarityumbrella]

Superstar! Thank you might add to it bit by bit as a reference for people

[lucyclarityumbrella]

I just wanted to write a short piece on coding notices when working via an umbrella company as I think it is something that generally can tend to be missed.

First of all understanding your tax code and making sure you are on the correct one is your responsibility. Your umbrella company...

[lucyclarityumbrella]

Albeit, this is now frowned upon across the board, so am hoping this won't be the case moving forwards!...

[lucyclarityumbrella]

It's complex and massively down to what is noted on the business to business contract between the umbrella and agency in terms of contractual location of work, we also have to look at whether the travel is regular to determine if it is taxable. Looks to me like either the contract means you are expected...

[lucyclarityumbrella]

And guess what they took logo's from umbrella companies and put them on the site without permission to make it look more authentic! ...