Originally posted by BobbyCrane
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Under taxed by my umbrella, now I have a huge tax bill
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Originally posted by Stevie Wonder BoyI can't see any way to do it can you please advise?
I want my account deleted and all of my information removed, I want to invoke my right to be forgotten. -
Originally posted by WTFH View PostDid 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?
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.Comment
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Originally posted by SimonMac View PostSo you gave them a P45?Comment
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Originally posted by BobbyCrane View PostActually, yes I did, they were fully informed.
Originally posted by BobbyCrane View PostI’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.merely at clientco for the entertainmentComment
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Originally posted by BobbyCrane View PostNo, because they told me it wasn’t necessary because of the overlap.
Sent from my iPhone using Contractor UK ForumComment
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Originally posted by BobbyCrane View Posthow 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.
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.…Maybe we ain’t that young anymoreComment
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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 entertainmentComment
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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.Down with racism. Long live miscegenation!Comment
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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.Originally posted by Stevie Wonder BoyI can't see any way to do it can you please advise?
I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.Comment
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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.merely at clientco for the entertainmentComment
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