Hi All, First time here on this forum, and what a great resource. So my story goes like this...
In the tax year 2019/2020 I had a regular PAYE job and had a chance to do some additional contract work during the evenings and weekends as my wife was sick from work and we needed the extra cash. The contract insisted that I use Parasol as the umbrella company to sort my tax out which was cool with me as I'd previously been stung for the tax before as a sole trader and didn't fancy that issue again.
So I registered with Parasol and explained to them that this was a second job and that I was already hitting the 40% threshold with my first PAYE role. They guided me through the process and said all would be good. I finished the contract some 6 months later and resigned from Parasol as it was no longer needed. Fast forward to today and I'm sorting out my personal tax return with Clearsky a sister company to Parasol as they look after my limited company.
It turns out that Parasol had put me on a BR code for all earnings on that contract and this, so they have told me is set to 20% tax. I therefore now owe a couple of thousand is personal tax which I've not got as I'm the same as many with less earning due to COVID and the devastating effect on companies. I'm really annoyed that I was not told about this when starting the contract with Parasol, they should have alerted me of what to do when I explained to them that I already had an income over the 40% threshold. When I quizzed Parasol over this they said that HMRC should have contacted me with a tax code change seeing two lots of income tax coming in. Anyone else had a similar issue?
In the tax year 2019/2020 I had a regular PAYE job and had a chance to do some additional contract work during the evenings and weekends as my wife was sick from work and we needed the extra cash. The contract insisted that I use Parasol as the umbrella company to sort my tax out which was cool with me as I'd previously been stung for the tax before as a sole trader and didn't fancy that issue again.
So I registered with Parasol and explained to them that this was a second job and that I was already hitting the 40% threshold with my first PAYE role. They guided me through the process and said all would be good. I finished the contract some 6 months later and resigned from Parasol as it was no longer needed. Fast forward to today and I'm sorting out my personal tax return with Clearsky a sister company to Parasol as they look after my limited company.
It turns out that Parasol had put me on a BR code for all earnings on that contract and this, so they have told me is set to 20% tax. I therefore now owe a couple of thousand is personal tax which I've not got as I'm the same as many with less earning due to COVID and the devastating effect on companies. I'm really annoyed that I was not told about this when starting the contract with Parasol, they should have alerted me of what to do when I explained to them that I already had an income over the 40% threshold. When I quizzed Parasol over this they said that HMRC should have contacted me with a tax code change seeing two lots of income tax coming in. Anyone else had a similar issue?
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