"Huge" umbrella company problems
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  1. #11

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    Quote Originally Posted by TheFaQQer View Post
    When I was permie, whenever my tax code changed, HMRC would write to me and tell me - I never heard from the HR departments.

    Now I run my own business, whenever my tax code changes, HMRC will write to me and tell me.
    Fair enough; still doesn't explain the shenanigans I'm seeing besides this. If I was getting a tax rebate, would it not get a separate line-item? I thought PAYE was supposed to simplify things. I've been in this country for 14 years and never had issues like this.

    Just spoken to them and my "ESO" is investigating now and I should have a call before 1. I can't wait.
    Last edited by seanraaron; 18th January 2016 at 09:40.

  2. #12
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    Quote Originally Posted by seanraaron View Post
    I would expect them to advise me of a change in the tax code certainly. Every time there has been a change in the past, due to a change in tax policy or because my pay pushed me into a new bracket I've had payroll/HR notify me.
    If your tax code is changed you should be notified of how and why on a form sent to you by HMRC. Your employer gets an abridged version of it. Personally I cannot recall ever having an employer tell me they had got a new code for me, but your experience obviously differs.

    If you have not received one it is HMRC's issue rather than your employers; however if you log on to your self assessment you can track them down in there.

    https://online.hmrc.gov.uk/informati...ingNoticesHelp

  3. #13

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    I know HMRC changed the code and not the umbrella and I know the umbrella isn't responsible for telling me my tax code. This is a simple customer service issue in my mind: you're processing my pay; if the withholding for tax changes from 150 in one payslip to over 500 a couple later, it seems like an idea to notify me before I call you asking what the hell is going on; especially if turns out you've been jacking up my expenses from day one for no discernible reason.

    I don't think I'm being unreasonable here. The only mistake I appear to have made is not checking every payslip on payday from my first and assuming they were doing things correctly.

  4. #14

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    Quote Originally Posted by seanraaron View Post
    I know HMRC changed the code and not the umbrella and I know the umbrella isn't responsible for telling me my tax code. This is a simple customer service issue in my mind
    It is - you should ask HMRC why they haven't been fulfilling their role properly.
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    Quote Originally Posted by TheFaQQer View Post
    It is - you should ask HMRC why they haven't been fulfilling their role properly.
    I did - the guy said their system had determined I'd be earning more than 100k this fiscal year which isn't remotely true. They were great to work with - ten minutes on the phone to sort things and an admission their systems weren't perfect. There was a suggestion my earnings miscalculation was the result of info from my umbrella, so it didn't put my mind at ease, though...

    My umbrella company is making nice noises, but I keep finding new reasons to get annoyed with them every time I turn over a rock. If I could have HMRC as my payroll company I'd do that instead - at least I don't need to call multiple times to get a question answered!
    Last edited by seanraaron; 18th January 2016 at 10:04.

  6. #16

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    Quote Originally Posted by seanraaron View Post
    I did - the guy said their system had determined I'd be earning more than 100k this fiscal year which isn't remotely true. They were great to work with - ten minutes on the phone to sort things and an admission their systems weren't perfect. There was a suggestion my earnings miscalculation was the result of info from my umbrella, so it didn't put my mind at ease, though...
    What did HMRC say when you asked them why they hadn't notified you about your new tax code?
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    Quote Originally Posted by seanraaron View Post
    I did - the guy said their system had determined I'd be earning more than 100k this fiscal year which isn't remotely true. They were great to work with - ten minutes on the phone to sort things and an admission their systems weren't perfect. There was a suggestion my earnings miscalculation was the result of info from my umbrella, so it didn't put my mind at ease, though...
    The basic issue is that the personal allowance gets clawed back if earnings are over 100k. THey determines this from the RTI information. I am GUESSING that your first pay (gross) from the umbrella was over 100k and triggered an assumption of annual earning that would require some clawback, thus the new tax code and this should have been sent to you.

    Had you received - and read it - this would have triggered you notifying them that the assumptions were incorrect and would have saved you the angst. Though as you say it was pretty easy to resolve it (just a pain that you have to).

    I don't really know how HMRC can imrpove much without constantly recalculating everybody tax code every pay period and extrapolating it. But it does show a far from foolproof system.

    (It is a damn nuisance. FWIW my partners son has a part time job he started a couple of months ago. He still has a 0T tax code despite repeated form filling both by employer and him. We are kind of resigned to him having to fill out a tax return to demonstrate the overpayment and eventually yield a refund since absolutely nothing seems to generate a correct tax code for him).

  8. #18

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    Quote Originally Posted by TheFaQQer View Post
    What did HMRC say when you asked them why they hadn't notified you about your new tax code?
    They didn't have my current address. I don't understand how that could be as I moved six months ago when I was with my previous employer, but then I don't know how they know anything about me beyond my NID in the first place. To be honest I was surprised I was talking to a human being within twenty seconds of dialling the number!

    @ASB Unless (and this isn't remotely outside the realm of possibilities) my umbrella company made a serious screw-up reporting my gross pay I can't see how they'd arrive at the conclusion I'm making over 100k this year come April. My permanent job was just over 46k per annum, so my year-to-date from last April to October was just over 30 grand. My year to date on my most recent payslip is just under 40k and though my rate is a lot higher than my old pay, I'm not getting anything close to 60 grand in the next four months!

    I imagine there's loads of little mistakes made, but as long as it's close enough I'll take the simplicity of PAYE over submitting a return. Of course I have to count on others to make that work...

    Update:

    My umbrella has responded to part of my concerns by stating they'll check on the rebate query and confirm my tax is right for year-to-date pay.

    Lisa has told me via email the three weeks between perm and contract is actually enough to account for the lack of withholding in the first payslip because it's a cumulative code. The expense thing is very much a real concern, so hopefully they have an explanation or a fix for that. Thanks for the assistance Lisa, that's at least put me partially at ease!
    Last edited by seanraaron; 18th January 2016 at 12:39.

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    Quote Originally Posted by seanraaron View Post
    Lisa has told me via email the three weeks between perm and contract is actually enough to account for the lack of withholding in the first payslip because it's a cumulative code. The expense thing is very much a real concern, so hopefully they have an explanation or a fix for that. Thanks for the assistance Lisa, that's at least put me partially at ease!
    Sounds like a switch from a problem umbrella to a really helpful umbrella might be in order....
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