Can anyone clarify this for me. Work for an agency still through an umbrella company. I’m curious as to how this works with regards to the Parity rule. It still shows as me paying PAYE through umbrell…
Im currently doing agency work and am paid (in a murky sort of PAYE) through umbrella. They take a lump of "non-taxable expenses" out of my gross, deduct tax and N.I., + take their fee (6 percent), then put the lump back in. Try as i might, i cant get to the nitty gritty of how they play the numbers game, but im cool with what i net, and so let sleeping dogs lie. I dont submit any expenses to them however, as i have just sent their end of year P60 and all my motoring/clothing/kit receipts to my trusted old accountants from my self-employed years as a joiner. If theres anything irregular going on, theyre sure to let me know. Needless to say, i trust neither my agency or pay company to look after my best interests, so i use my secondary guardians to check them both out!
As for parity, i think its just government lip service which is ignored by quite a few companies. Look after number one and put your own safeguards in place against getting short-changed/ripped. Dont lose too much sleep trying to ponder the imponderable!
I submit the expenses but don’t really understand how thst works. My first shift I travelled and it worked out at £160 or thereabouts just in mileage. Got a message saying that to protect the minimum wage I’d only get…can’t remember but was only pennies. Made no sense whatsoever. Agency I’m with just now have just dropped hourly rate…and not by just a couple pence. I’m not amused with them. They said there’s not really much I can do bout it…
Protect the minimum wage?? Never encountered that fancy wording before. Have you spoken directly with your pay company for an explanation? As for dropping your rate, they’re plain taking the ■■■■ out of you. Ring a few other agencies and find a pay rate that’s acceptable - WITHOUT DELAY. Jump ship, and keep the ■■■■■■■■ dangling on a string. You owe them nothing obligation or loyalty wise - they’re all just parasites and they need you way more than you need them. Always remember that YOU’RE the one with the strongest hand of cards, and you can change agencies/pay companies daily if the fancy takes you.
I already seen another agency and registered. One of the clients they dropped money for was to the sum of £3 an hour. Said it’s going back up in June…by £1…yeah…do the maths!
Dodgy gits - best to simply walk away. Soon enough, they’ll be struggling big time to supply drivers to anyone. Might be an idea to find out (if they outsource wage payments) who this new agency use, and Google 'em to check that they’re kosher.
Name & shame these current, cut-price cowboys dude - might help to prevent others from getting stitched up. Best case scenario, it might even bury the outfit altogether!
They’re a big company with a number of offices. Been around for a while as well. Not sure if it’s one office doing this or its how the whole lot operate. Got some big name clients and I do know they sometimes struggle to get drivers to meet demand. Our wages are paid through an umbrella company.
EddieMD:
I submit the expenses but don’t really understand how thst works. My first shift I travelled and it worked out at £160 or thereabouts just in mileage. Got a message saying that to protect the minimum wage I’d only get…can’t remember but was only pennies. Made no sense whatsoever. Agency I’m with just now have just dropped hourly rate…and not by just a couple pence. I’m not amused with them. They said there’s not really much I can do bout it…
£160 just for mileage where are you working New Zealand
No…They take a chunk of your wage and call it a salary sacrifice so you don’t pay tax on it. They then put in the expenses which are tax free up to that amount into your wage to make it up to pretty much what it was. You only pay tax on half your wage as half has been sacrificed to save you paying the tax. It’s all playing with numbers and you might only save a few quid. I hear HMRC are looking at all this so this is why I’m trying to figure a way round about the dodges without going self employed. I want to stay legal and I’m sure the taxman will close this loophole. I don’t think for one minute these companies are going to all this trouble with tax law and numbers just to save me literally a couple quid here and there
Yeah I know, but they’re putting through mileage that I’m not really getting and I’m sacrificing half my wage for what. To put pennies in there pocket at my expense. That’s what it’s looking like.
So tell them you want paying PAYE and put your own mileage claim in, you may lose a pound per hour but you won’t be paying there fees and will get holiday pay