Do umbrella companies take the correct tax when you only work for a partial year?
Like many people, I did not work the first 6-8 months of the current tax year due to Covid. I'm just starting work in December. So my total tax for the year will be less than if I worked all year.
Let's do a quick example:
Contractor in England with umbrella company
tax year 2020 - 2021
tax code 1250L
income first 8 months: 0
income final 4 months: 6000 / mo.
Will the umbrella company take NI and income tax based on person earning 24000 this year, which is correct, or based on assuming person will earn 72000 this year, which is incorrect?
Like many people, I did not work the first 6-8 months of the current tax year due to Covid. I'm just starting work in December. So my total tax for the year will be less than if I worked all year.
Let's do a quick example:
Contractor in England with umbrella company
tax year 2020 - 2021
tax code 1250L
income first 8 months: 0
income final 4 months: 6000 / mo.
Will the umbrella company take NI and income tax based on person earning 24000 this year, which is correct, or based on assuming person will earn 72000 this year, which is incorrect?
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