AndrewG:
Should be outlawed, surprised the UK govt hasnt stepped in and put a stop to such swindling. Do these agencies actually use a ‘payroll’ company or is this all an in house con?
From reading previous posts it seems that agencies “suggest” umbrella company to the worker. By a massive coincidence the records show that these companies have the same directors. Amazing!
A common problem on some if these threads seems to be
“I was told ■■■” and “I was promised ■■■”.
Someone, possibly younger and not workplace savvy, needing work, over-laden with new info and with lots of forms to sign for the agency is an easy target for sharp practice.
I think you’re right though. The law seems inadequate or at least unenforced.
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Ive decided to work next week to give the agency a chance to change my pay. If not then i’ll walk away.
I did it for precisely one wage packet. When I got it and looked at it I text them and said not to book anymore shifts including the upcoming Monday one. Within minutes I got a phone call. Told them it was a con. They then said they had another scheme. We parted company.
AndrewG:
Should be outlawed, surprised the UK govt hasnt stepped in and put a stop to such swindling. Do these agencies actually use a ‘payroll’ company or is this all an in house con?
From reading previous posts it seems that agencies “suggest” umbrella company to the worker. By a massive coincidence the records show that these companies have the same directors. Amazing!
A common problem on some if these threads seems to be
“I was told ■■■” and “I was promised ■■■”.
Someone, possibly younger and not workplace savvy, needing work, over-laden with new info and with lots of forms to sign for the agency is an easy target for sharp practice.
I think you’re right though. The law seems inadequate or at least unenforced.
Sent from my GT-S7275R using Tapatalk
Ive decided to work next week to give the agency a chance to change my pay. If not then i’ll walk away.
peirre:
41hrs x £10.25 = £420.25 gross
youve been paid £290 net, so youve paid £130.25 in deductions, around a third of your gross income.
Asuming youve paid income tax and NI contributions at standard rates, what we dont know are the fees levied by the “umbrella Co”?.
weeto:
peirre:
41hrs x £10.25 = £420.25 gross
youve been paid £290 net, so youve paid £130.25 in deductions, around a third of your gross income.
Asuming youve paid income tax and NI contributions at standard rates, what we dont know are the fees levied by the “umbrella Co”?.
£420.25p less tax and NI with a tax code of 11500 on PAYE = net £348.84p, so fee = £58.40p
Both of the above are true, though I would actually suspect you are paying Emergency Tax as a new employee and it will come back to you. Did you get a payslip or a remittance advice?
peirre:
41hrs x £10.25 = £420.25 gross
youve been paid £290 net, so youve paid £130.25 in deductions, around a third of your gross income.
Asuming youve paid income tax and NI contributions at standard rates, what we dont know are the fees levied by the “umbrella Co”?.
weeto:
peirre:
41hrs x £10.25 = £420.25 gross
youve been paid £290 net, so youve paid £130.25 in deductions, around a third of your gross income.
Asuming youve paid income tax and NI contributions at standard rates, what we dont know are the fees levied by the “umbrella Co”?.
£420.25p less tax and NI with a tax code of 11500 on PAYE = net £348.84p, so fee = £58.40p
Both of the above are true, though I would actually suspect you are paying Emergency Tax as a new employee and it will come back to you. Did you get a payslip or a remittance advice?
Yes. It’s not emergency tax. Ive paid two lots of tax and insurance and some fees.
peirre:
41hrs x £10.25 = £420.25 gross
youve been paid £290 net, so youve paid £130.25 in deductions, around a third of your gross income.
Asuming youve paid income tax and NI contributions at standard rates, what we dont know are the fees levied by the “umbrella Co”?.
Take home pay for £420.25 should have been £348.84 after £39.82 tax and £31.59 NI was deducted. If it is an umbrella company they’d be keeping around 26% of his wages to cover the employers NI and holiday pay. That would be deducted pre-tax so would reduce his take home pay by roughly £70 so it should be £270-ish less the weekly umbrella fee.
Lets assume he’s on PAYE on basic rate tax code if it is a new job and his tax code hasn’t come through yet. There would be additional tax on the £220 a week that should be tax free of £44. That takes us now down to £304.84.
Unfortunately there’s not enough information given by Scott to figure out what is going on.
Flat rate tax on pay without any personal allowance plus NI deductions .
Very normal for agencies even if on paye , they do this until they get your code from HMRC .
Big difference once the code is in place as the first £200 odd is tax free each week .
scottlayton35:
Yes. It’s not emergency tax. Ive paid two lots of tax and insurance and some fees.
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Ah right. So there’s 11% of what you earned above £130-something which is employers NI which as an employee you wouldn’t have had to pay but which an umbrella company would take off you. That’d account for £30 odd quid of it.
grumpyken52:
Flat rate tax on pay without any personal allowance plus NI deductions .
Very normal for agencies even if on paye , they do this until they get your code from HMRC .
Big difference once the code is in place as the first £200 odd is tax free each week .
I showed the maths for that above, it would only be £44 extra income tax so that would still leave him with just over £300.
Alfa1M:
I discovered when I was umbrella they take a deduction to cover your future holiday pay… absolutely madness
Yep. Except i’m not gonna take a holiday cos it’s just 12 weeks with agency then a permanent contract. Ive spoke with them today and they’re paying it back.