Take home pay

[ric_77]

Hi all, some advice needed please.

I've not been contracting for long & so far there's been no problems and the umbrella company I use (wrongly or rightly) have generally been ok up until last week.

I have started a new contract on weekly pay, whereas my previous one was monthly and since changing over, I have paid some really heavy tax.

For example, I was paid from my new contract (weekly) on 12th nov and the remiander pay of my previous contract (monthly) on the 14th nov but on this one

I got no tax relief, as they said I only get one per week so I paid roughly 30%tax. I was told that it would be paid back to me over the next 'few' payslips, fair enough i thought.

Then this week (19th nov), my weekly pay has been even worse with about 37% tax paid. My umbrella company tell me this is with some tax relief otherwise it would of been lower.

I'm now at a loss as to why they are taking so much off me and it seems that this 'tax releif' that I'm owed will just dissapear and I'll never see it.

Any help much appreciated.

[Sausage Surprise]

Hi all, some advice needed please.

I've not been contracting for long & so far there's been no problems and the umbrella company I use (wrongly or rightly) have generally been ok up until last week.

I have started a new contract on weekly pay, whereas my previous one was monthly and since changing over, I have paid some really heavy tax.

For example, I was paid from my new contract (weekly) on 12th nov and the remiander pay of my previous contract (monthly) on the 14th nov but on this one

I got no tax relief, as they said I only get one per week so I paid roughly 30%tax. I was told that it would be paid back to me over the next 'few' payslips, fair enough i thought.

Then this week (19th nov), my weekly pay has been even worse with about 37% tax paid. My umbrella company tell me this is with some tax relief otherwise it would of been lower.

I'm now at a loss as to why they are taking so much off me and it seems that this 'tax releif' that I'm owed will just dissapear and I'll never see it.

Any help much appreciated.

Go limited

[malvolio]

Well yes, obviously...

However, tax is paid cumulatively and it will correct itself over time with the ultimate endstop being your SA form for the year. The umbrella will only pay you what it is obliged to, so if the switch from monthly to weekly has confused their tax history, then that's what you get. I shouldn't worry too much until you have pased the one month threshold by which time it should be (and should remain) at the right level.

One of the joys of contracting. Unlike a permie, the umbrella will not assume you'll be there next week so pays all its bills on current data only.

[ric_77]

Well yes, obviously...

However, tax is paid cumulatively and it will correct itself over time with the ultimate endstop being your SA form for the year. The umbrella will only pay you what it is obliged to, so if the switch from monthly to weekly has confused their tax history, then that's what you get. I shouldn't worry too much until you have pased the one month threshold by which time it should be (and should remain) at the right level.

One of the joys of contracting. Unlike a permie, the umbrella will not assume you'll be there next week so pays all its bills on current data only.

Thanks for the reply, I understand that it will get adjusted and remain so, but im just confused at to when i'll get this couple hundred quid back that they owe me. For example, I know there is a max limit that they can pay me so this would take it over that if they paid it in one go! Does it get listed on my payslip?

Also, is it worth getting onto the tax to see they can offer any help?

(i'm not letting them get away with cos the net pay I have had is a joke)