Under taxed by my umbrella, now I have a huge tax bill Under taxed by my umbrella, now I have a huge tax bill - Page 5
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  1. #41

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    Quote Originally Posted by SimonMac View Post
    Sorry but this is wrong. A BR (or any tax code) and Outside/Inside has no relationship what so ever
    Let me expand then. I was outside IR35 before through the Ltd co, therefore able to take salary at a lower level and take dividends taxed through self assessment. I could put business accommodation and other costs through the business and reduce the overall personal taxation while also paying corp tax. So, for the personal income a BR tax code was appropriate to the levels at the time.

  2. #42

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    Quote Originally Posted by WTFH View Post
    Why was BR right when you were working through your own Ltd?




    because the previous company - i.e. your Ltd - had happily been paying you with the wrong code and had never queried it.
    Why is it not the responsibility of your previous company to supply the correct information to the umbrella?




    Why did the previous company - i.e. your Ltd - not check your tax code was correct?
    Expanded / explained on SimonMac’s comment. My accountant (SJD) are fine with their work. The code was correct.

  3. #43

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    Quote Originally Posted by BobbyCrane View Post
    Let me expand then. I was outside IR35 before through the Ltd co, therefore able to take salary at a lower level and take dividends taxed through self assessment. I could put business accommodation and other costs through the business and reduce the overall personal taxation while also paying corp tax. So, for the personal income a BR tax code was appropriate to the levels at the time.
    Nope nope nope nope nope, again you are misconstruing the two situations.

    Unless you are saying your LtdCo had your 1150L tax code and you were drawing a salary from that, and your umbrella as a second job had the BR (which is normal)? Did you continue to pay yourself from yourco while you were also working for the umbrella company? If you stopped working for YourCo did you (or SJD) provide a P45 to give to Contractor Umbrella to transfer your allowance to that job
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

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  4. #44

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by BobbyCrane View Post
    So, for the personal income a BR tax code was appropriate to the levels at the time.
    No it wasn't

    Quote Originally Posted by BobbyCrane View Post
    The code was correct.
    No it wasn't

    Unless there's a big lump of story you're not telling us, a BR tax code is not normal, it is not correct when trying as a Ltd - unless you're not telling us something.

    A normal tax code will be xxxxL

    e.g. 1250L is the normal code for 2019/20
    1185L was the normal code for 2018/19
    1150L for 2017/18
    1100L for 2016/17
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  5. #45

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    Quote Originally Posted by SimonMac View Post
    Nope nope nope nope nope, again you are misconstruing the two situations.

    Unless you are saying your LtdCo had your 1150L tax code and you were drawing a salary from that, and your umbrella as a second job had the BR (which is normal)? Did you continue to pay yourself from yourco while you were also working for the umbrella company? If you stopped working for YourCo did you (or SJD) provide a P45 to give to Contractor Umbrella to transfer your allowance to that job
    I was paid by CU from Jan 18 on BR code.
    I was paid by my Ltd co until Mar 18 on 1150L.
    Through self assessment, I paid all tax that was due for 2017/18, already fully paid through payments on account and through PAYE by my Ltd co and through CU. There is nothing wrong with my 2017/18 tax.
    CU took the BR code forward and never adjusted for the amount of income passing through their books. That’s my challenge here, that they should have known that and advised me accordingly.

  6. #46

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    Quote Originally Posted by BobbyCrane View Post
    I was paid by CU from Jan 18 on BR code.
    I was paid by my Ltd co until Mar 18 on 1150L.
    Through self assessment, I paid all tax that was due for 2017/18, already fully paid through payments on account and through PAYE by my Ltd co and through CU. There is nothing wrong with my 2017/18 tax.
    CU took the BR code forward and never adjusted for the amount of income passing through their books. That’s my challenge here, that they should have known that and advised me accordingly.
    AND WE HAVE A WINNER!!!!!!!!!!!!

    So you never informed CU that your circumstances had changed after you stopped paying yourself in Mar 18?
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

  7. #47

    Some things in Moderation

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    I want to just draw everyone’s attention that we have two separate issues here.

    1. BC’s current problem with his current emergency tax code - thread
    2. BC’s potential problem with his old legacy tax code - another thread?


    I don’t want to overwhelm him with tax problems, can we stick to fixing the first one i this thread?
    "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."
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  8. #48

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    Quote Originally Posted by cojak View Post
    I want to just draw everyone’s attention that we have two separate issues here.

    1. BC’s current problem with his current emergency tax code - thread
    2. BC’s potential problem with his old legacy tax code - another thread?


    I don’t want to overwhelm him with tax problems, can we stick to fixing the first one i this thread?
    In fairness one is related to the other, the OP is looking to see who is to blame for his underpayment of tax
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

  9. #49

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    Quote Originally Posted by SimonMac View Post
    AND WE HAVE A WINNER!!!!!!!!!!!!

    So you never informed CU that your circumstances had changed after you stopped paying yourself in Mar 18?
    Actually, yes I did, they were fully informed.

  10. #50

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    Quote Originally Posted by BobbyCrane View Post
    I was paid by CU from Jan 18 on BR code.
    I was paid by my Ltd co until Mar 18 on 1150L.

    CU took the BR code forward and never adjusted for the amount of income passing through their books. That’s my challenge here, that they should have known that and advised me accordingly.
    Did you/your company advise CU in writing by April 2018 that you had stopped paying yourself in March 18, and that they were now the sole source of income?
    Did you also advise them at that time what your tax code should be?
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