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 6
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  1. #51

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    Quote Originally Posted by BobbyCrane View Post
    Actually, yes I did, they were fully informed.
    So you gave them a P45?
    “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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  2. #52

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    Quote Originally Posted by WTFH View Post
    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?
    I’ll check back in my files later but to my recollection...
    Yes
    Yes
    No - how the heck was I responsible for telling them or would I even know what my code should be?? They were taxing in 17/18 at BR because of the overlap, they knew that and once 2017/18 was closed, they were in sole employer position.

  3. #53

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    Quote Originally Posted by SimonMac View Post
    So you gave them a P45?
    No, because they told me it wasn’t necessary because of the overlap.

  4. #54

    bored now

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    Quote Originally Posted by BobbyCrane View Post
    Actually, yes I did, they were fully informed.
    Which isn't what you say here in point 3 so could you make your mind up.

    Quote Originally Posted by BobbyCrane View Post
    I’ll check back in my files later but to my recollection...
    Yes
    Yes
    No - how the heck was I responsible for telling them or would I even know what my code should be?? They were taxing in 17/18 at BR because of the overlap, they knew that and once 2017/18 was closed, they were in sole employer position.
    on point 3, did contractor Umbrella know that? You seem to believe they knew that they were your sole employer yet you do not appear to have told them that fact at any point. How was contractor umbrella supposed to discover the fact they were your sole employer (osmosis)?
    merely at clientco for the entertainment

  5. #55

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    Quote Originally Posted by BobbyCrane View Post
    No, because they told me it wasn’t necessary because of the overlap.
    A big boy told me and ran away


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  6. #56

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    Quote Originally Posted by BobbyCrane View Post
    how the heck was I responsible for telling them or would I even know what my code should be?? They were taxing in 17/18 at BR because of the overlap, they knew that and once 2017/18 was closed, they were in sole employer position.
    How were they to know your tax code? It was your previous company's responsibility to pass on the information, and if they didn't do that, then it would be your responsibility.

    Why did you pay yourself out of your own Ltd for 3 months, while also drawing a salary from them? Would it not have made more sense to stop paying from your Ltd, then they would have taken you on at a normal tax code?

    HMRC send you out a tax code every year. That is then used by your accountants to calculate what taxes you pay.
    Each year your tax limit would change and your accountants would work out your tax return based on that.

    If you never advised CU that:
    1. You had stopped paying yourself
    AND
    2. Your tax code was a certain level
    Then they would continue on at the initial level until such times as you advised them.

    This is one reason why it's important to check your pay slip. Your tax code will be on there. If it's wrong, you need to sort it out.

    CU will argue that they have sent you a pay slip every month since you started with them. That pay slip stated your tax code, and you have never questioned it.
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  7. #57

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    Right, so have we finally cleared up the story now?

    1) It seems the OP didn't tell contractor umbrella enough information for them to ensure the right tax was paid
    2) The OP has made assumptions that turned out not to be the case
    3) while contractor umbrella seem to have missed a procedure to double and triple check people on BR tax codes,

    4) it isn't Contractor Umbrella's fault as they were following the information given to them.

    5) and anyway this is irrelevant as it is up to the OP (as it is with everyone else) to ensure HMRC is told about things and the correct amount of tax is paid.
    merely at clientco for the entertainment

  8. #58

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    According to this, if your employer causes you to pay more tax than you should and it's their fault, they have to pay the tax due.

    It seems in this case, it isn't CU's fault.

    OP should ask HMRC for a payment plan.
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  9. #59

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    I feel I may have been a little harsh on OP, he's not the first and I doubt he will be the last to be in a position where not knowing their responsibilities has resulted in a large tax bill (although I think this is the first I have seen where a person doesn't know their responsibilities as an employee).

    I have said many times, you are paying for advice, and advice only when you engage an accountant, a lawyer, an umbrella company. You are not paying to transfer the liability of that advice to them, unless you pay a hell of a lot of money for the privilege.
    “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

  10. #60

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    Quote Originally Posted by NotAllThere View Post
    According to this, if your employer causes you to pay more tax than you should and it's their fault, they have to pay the tax due.

    It seems in this case, it isn't CU's fault.

    OP should ask HMRC for a payment plan.
    I think the important line is this line

    However, where the employer/pension provider has not used the correct PAYE code and this causes any tax not to be collected, it remains their responsibility, not yours.
    and we've already seen that the only way CU would have known they were not using the correct code was via osmosis as it seems no-one knew that the OPs company had stopped doing payroll.
    merely at clientco for the entertainment

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