Not sure if I’m straying off the topics here a little guys but I’ve been gettin stressed about tax issues last few weeks of working as driver and wondered if anyone else had come across this problem…
I was advised by the agency I’m with to go into an umbrella company called nova as they could pay an extra pound an hour and would work out altogether better in the long run…
Now that I’ve passed the 1st 8000 free tax period my take home pay has dropped dramatically…
One week I worked 56 hrs and only ended up bringing home 350 pound and I was making just under that at my old warehouse job for doing 40hrs…Seems like a lot to pay out over 200 pound a week…thanks in advance for any tips…
I am not a tax expert but reading between the lines you are working paye for an already set up limited company who appear to be an umbrella company if the agency yes ?
Yes that’s right m8 I got a letter saying I am the director of a Ltd company…When I rang the agency to say I think I’ll cancel it as I’ve no interest in bein a director of it they told me that this way was better and that I’d probably end up paying more just handing time sheets in to them and them paying me…Don’t think it could get any worse tho I thought surely 230 pound deductions is a bit much 
NOVA love putting you onto LTD company status but you’re right, in most cases it’s not a good idea for your average driver under a single agency - lots and lots of complications which will cost you money not them! Had dealings with NOVA trying to sort someone else out who’d been duped into this situation and what I think of them isn’t repeatable on this forum…!
Get out of LTD quick and if they can’t put you on PAYE then leave the agency, tell them to sort your tax money now or you’ll take them to the HMRC (who can be surprisingly helpful) and switch to someone who does PAYE. Isn’t an agency starting “Tran…” by any chance?
Btw, your pay on the first one should be roughly £483 minus the £13 they charge to “do your accounts” as PAYE not what they’ve charged you.
Nelson 76
As above im no expert, but depending on your circumstances and assuming this is your only employment your tax free threshold is £11,000. Between £11,001 an £43,000 its 20%
According to your pay above you may be being short paid as PAYE already:
Assuming you have gone over the £11000 0% tax personal allowance threshold, and are paying Class 1 NI contributions at the primary rate and have no extra charges from your employer (the agency):
Week 1 - Gross pay: £620.44 - Tax at 20%: £124.08, NI at 12% minus £155 threshold = £55.85 - Net pay therefore should be £440.51
Week 2 - Gross pay: £560.82 - Tax at 20%: £112.16, NI at 12% minus £155 threshold =£48.69 - Net pay therefore should be £399.97
Ltd company is a pain in the ■■■, get out of it, its all about moving the burden of NI and payroll on to the employee thus creating the agency more profit. I myself run 2 other business’s as a sole trader and drive as PAYE, much easier to work out the only real downside being i have to claim any personal tax allowance back at the end of the FY when i submit accounts to HMRC.
Hope that helps.
You’re being ripped off ! i got paid £679 gross after tax NI and pension (=£160.12 ) I got £519.72 + £66 night out
Tax £92.60 NI £62.98 pens £4.54 PAYE
so you’re paying an umbrella company some serious wonga 
hamletbarnard:
Nelson 76
As above im no expert, but depending on your circumstances and assuming this is your only employment your tax free threshold is £11,000. Between £11,001 an £43,000 its 20%According to your pay above you may be being short paid as PAYE already:
Assuming you have gone over the £11000 0% tax personal allowance threshold, and are paying Class 1 NI contributions at the primary rate and have no extra charges from your employer (the agency):Week 1 - Gross pay: £620.44 - Tax at 20%: £155.11, NI at 12% minus £155 threshold = £55.85 - Net pay therefore should be £409.98
Week 2 - Gross pay: £560.82 - Tax at 20%: £112.16, NI at 12% minus £155 threshold =£48.69 - Net pay therefore should be £399.97Ltd company is a pain in the ■■■, get out of it, its all about moving the burden of NI and payroll on to the employee thus creating the agency more profit. I myself run 2 other business’s as a sole trader and drive as PAYE, much easier to work out the only real downside being i have to claim any personal tax allowance back at the end of the FY when i submit accounts to HMRC.
Hope that helps.
using salary calc app
week 1 £477.84 week 2 £437.78 PAYE
blue estate:
hamletbarnard:
Nelson 76
As above im no expert, but depending on your circumstances and assuming this is your only employment your tax free threshold is £11,000. Between £11,001 an £43,000 its 20%According to your pay above you may be being short paid as PAYE already:
Assuming you have gone over the £11000 0% tax personal allowance threshold, and are paying Class 1 NI contributions at the primary rate and have no extra charges from your employer (the agency):Week 1 - Gross pay: £620.44 - Tax at 20%: £155.11, NI at 12% minus £155 threshold = £55.85 - Net pay therefore should be £409.98
Week 2 - Gross pay: £560.82 - Tax at 20%: £112.16, NI at 12% minus £155 threshold =£48.69 - Net pay therefore should be £399.97Ltd company is a pain in the ■■■, get out of it, its all about moving the burden of NI and payroll on to the employee thus creating the agency more profit. I myself run 2 other business’s as a sole trader and drive as PAYE, much easier to work out the only real downside being i have to claim any personal tax allowance back at the end of the FY when i submit accounts to HMRC.
Hope that helps.
using salary calc app
week 1 £477.84 week 2 £437.78 PAYE
*Edit your right - mixed my sums with another sheet!
- Edit 2 - still comes out at £440.51 for week 1 / 399.97 wk 2
Cheers for all the replies people I’m just tryin get my head round it all as when I was on my previous warehouse job like I say I was getting just under that doin 40hrs a week and gettin half my rent paid through housing benefit…but since this job they say I’m on high wage I’m having to pay full rent which I don’t mind as I’ve paid bills all my life working it jus seems I’m gettin rinsed from all sides now…
The wage slips above are actually week 21 and 22 all the other weeks have been fine paying around 100 a week it’s just now they say I’ve gone over the 8 grand tax free period I have to pay employees AND employers national insurance…
Just stuck on whether to go back to agency with PAYE if anyone else had been in this position…thanks again for taking time out 
I’ve never used an app m8 I tried an online calculator but wasn’t sure how enter the data as it asks for hrs worked on a week and didn’t take into account overtime etc…
NELSON76:
Cheers for all the replies people I’m just tryin get my head round it all as when I was on my previous warehouse job like I say I was getting just under that doin 40hrs a week and gettin half my rent paid through housing benefit…but since this job they say I’m on high wage I’m having to pay full rent which I don’t mind as I’ve paid bills all my life working it jus seems I’m gettin rinsed from all sides now…
The wage slips above are actually week 21 and 22 all the other weeks have been fine paying around 100 a week it’s just now they say I’ve gone over the 8 grand tax free period I have to pay employees AND employers national insurance…
Just stuck on whether to go back to agency with PAYE if anyone else had been in this position…thanks again for taking time out
So are you Ltd company now or PAYE?
I’m on Ltd company m8…
I thought limited company you have to invoice the agency directly for your work including vat no ?
How can they pay you as limited without you invoicing them ?
I thought directors drove round in mercs an ferraris m8 not a 400 quid half scrap ford focus like me haha…here is part of letter they sent does this mean Ltd…
Also mate you should have an accountant who does your tax and insurance etc should you not ?
I know most people I know invoice for work with vat and have an accountant calculate it for them at the end if the tax year !!
Not the agency on a weekly basis !!
I get these remittance note things each week m8 sayin what they took out employees national insurance employers national insurance 10 pound service bill etc…I was jus wonderin if I left maybe I wouldn’t have to pay employers national insurance only employees but agency reckon I’ll still be worse off its a puzzle :-/
NELSON76:
I get these remittance note things each week m8 sayin what they took out employees national insurance employers national insurance 10 pound service bill etc…I was jus wonderin if I left maybe I wouldn’t have to pay employers national insurance only employees but agency reckon I’ll still be worse off its a puzzle :-/
As i’ve said they’re pulling your pants down and whipping your ■■■■
blue estate:
NELSON76:
I get these remittance note things each week m8 sayin what they took out employees national insurance employers national insurance 10 pound service bill etc…I was jus wonderin if I left maybe I wouldn’t have to pay employers national insurance only employees but agency reckon I’ll still be worse off its a puzzle :-/As i’ve said they’re pulling your pants down and whipping your ■■■■
So do I insist on paye when I sign up for agency ? Was going to go ltd company with my Mrs as director.
Dazza1shot:
blue estate:
NELSON76:
I get these remittance note things each week m8 sayin what they took out employees national insurance employers national insurance 10 pound service bill etc…I was jus wonderin if I left maybe I wouldn’t have to pay employers national insurance only employees but agency reckon I’ll still be worse off its a puzzle :-/As i’ve said they’re pulling your pants down and whipping your ■■■■
So do I insist on paye when I sign up for agency ? Was going to go ltd company with my Mrs as director.
You are a Ltd company… Neil. If you type Penryn logistics into the companies house website you will see you are the only director…
Effectively nova set you up as a company and they run it.
Some might be happy with that but I wouldn’t… Remember you are the company director and legally responsible for that company.
Sent from my D2403 using Tapatalk
I think you are on a PSC (personal service company). I was on it through NOVA when I was driving for Iceland via ADR network.
Up until April this year, you could submit food and fuel receipts to NOVA and they would put these though as expenses so that you would save on paying tax, however this is no longer allowed by HMRC so together with NOVA’s margin of 3% and also their admin charge, you are definitely worse off, so I ended it in May and went working for Downton (PAYE).
With a PSC you are listed as a director of a company at companies house also.