• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Free webinar: Effective stress control for contractors : Mon Mar 22 7:15 PM More details here.

Help! I think my umbrella company has screwed me over!

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Help! I think my umbrella company has screwed me over!

    I am having an absolute nightmare and need some help! I've been contracting since August 2016 and at the time I was rushed into choosing an umbrella company to use, a friend of mine recommended me Payerise and I blindly just went with them as she told me she had used them years without issue.

    However, a while ago I questioned my payslip with them, my year to date tax seemed very low and I was worried that this was a problem, my consultant responded with: In regards to your payslip slips, as your umbrella company we are able to lower your taxable pay, your tax is then deducted from this amount and would be correct based on the tax code of 1059L that we have on the system for you. We calculate your pay in a way that gives you the best possible take home and are legally responsible for making all of your deductions from your and submitting them to the HMRC.

    She said "we are legally responsible" and so I just left it - I probably should have pushed it further but I am not originally from the UK and the tax system is confusing over here so I assumed I was probably just wrong.

    So fast forward to now, I have just resgined from my current contract role and am about to start a new one, funnily enough at the exact same time Payerise give me a new representative as my old one left, and she doesn't seem to have been given any kind of handover. I have not been getting paid and there seems to be alot of confusion, so i decided to look into a new umbrella for my new role which I am doing - thanks to this forum.

    HOWEVER... in the meantime, I checked out my payslip for the first weeks wages of this new tax year and something is definitely up.

    I get paid £150 per day, so £750 per week Gross.
    My take home is £607.50.
    Payerise's fee is £25
    and on my first payslip of this tax year it is saying that my taxable pay is £262.50 and that this week they have deducted £8.20 tax.

    £8.20!?! this is nothing! And certainly not 20%?!!?

    I have today requested a P60 or a proper breakdown of what's happening here from payerise but jusging by recent correspondence i fear i might not receive this and I am now unsure of the next step to get this sorted.. I assume i will need to contact HMRC at some point but I just want it clear in my head how I go about sorting this out as when I have contacted them before they have been most unhelpful!

    Has anybody else has issues with tax and umbrella companies? and are you able to shed some light on how you got it sorted? I appreciate it <3

    #2
    Not good news I'm afraid.

    http://forums.contractoruk.com/showthread.php?t=118531
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by northernladuk View Post
      Not good news I'm afraid.

      Info on payerise
      Yeah, I saw that one before I am definitely well and truly convinced that it's not a good company to be with. They never mentioned anything about shares to me but I just can't figure out wtf is happening!

      I am trying not to dwell on my stupidity at not researching this properly to begin with! I am just now unsure how to fix it! Where do I start! I wish I understood tax more, but the UK tax system is super confusing!
      <3

      Comment


        #4
        I would advise contacting HMRC and asking for their help. The sooner you fix this the better it will be for you.
        "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
        - Voltaire/Benjamin Franklin/Anne Frank...

        Comment


          #5
          Originally posted by cojak View Post
          I would advise contacting HMRC and asking for their help. The sooner you fix this the better it will be for you.
          Yeah, that will be tomorrow's plan, just interested to see other peoples similar experiences.

          Comment


            #6
            Originally posted by londongirl7 View Post
            Has anybody else has issues with tax and umbrella companies? and are you able to shed some light on how you got it sorted? I appreciate it <3
            Unfortunately, they are not a "true" umbrella company if that is how they are operating. Speak with HMRC, sort the unpaid taxes with them and then pick a compliant brolly

            Comment


              #7
              Originally posted by lucycontractorumbrella View Post
              Unfortunately, they are not a "true" umbrella company if that is how they are operating. Speak with HMRC, sort the unpaid taxes with them and then pick a compliant brolly
              Could you recommend one for us please?
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by northernladuk View Post
                Could you recommend one for us please?
                Go do your homework

                Comment


                  #9
                  Don't worry you caught it in time. I would see an accountant, he should help you to sort out what you owe. You won't be any worse off except for the fees you paid the Umbrella, the damage doesn't sound bad.
                  I'm alright Jack

                  Comment


                    #10
                    Originally posted by BlasterBates View Post
                    Don't worry you caught it in time. I would see an accountant, he should help you to sort out what you owe. You won't be any worse off except for the fees you paid the Umbrella, the damage doesn't sound bad.
                    If the "umbrella" have been in any way negligent or deceitful I would be suing them for the unpaid taxes plus interest...
                    Blog? What blog...?

                    Comment

                    Working...
                    X