Stitch-Up by Umbrella?

[SqueakyClean]

Were you using a proper umbrella company or were you using a tax avoidance scheme?

Did your tax code change in April 2005?

Did you claim a large amount of expenses?

Did you provide the umbrella company with a P45 when you joined them or did you fill in a P46?

What was your accountant's explanation? Could they have made an error?

Sorry, so long ago I can't recall

[cojak]

Sorry, so long ago I can't recall

Then in the words of the song, you really are going to have to let it go.

And treat it as a very hard lesson learned to
PAY ATTENTION!!

[LisaContractorUmbrella]

Sorry, so long ago I can't recall

Then what makes you think that you were 'stitched up' by an umbrella company

[SqueakyClean]

Then what makes you think that you were 'stitched up' by an umbrella company

Apologies for being rude by answering a question with a question, but I think you've earned it; why not?:-)

What is the main reason for going with an umbrella? Therein lies your answer - and you certainly don't expect to walk away from an umbrella and being 8k in the hole as they manage you PAYE etc. It is possible that my accountants have made a mistake, which is why I am revisiting it with them, but I thought I would see if anyone else has been in the same position.

[NickNick]

Sounds like it was a set up that went away with the MSC legislation back in 2006/7 (?)

[northernladuk]

I think I may have had a few short term contracts through them, and no the last one was only 3 months, I could have swapped in between contracts - the parting was not amicable......don't ask me what happened - can't recall

So what are you are you expecting from this thread? There is f*k all anyone can do for you if you can't remember the detail....

Did the accountant send you their account details and said just put it in there and they would pay it for you?? Bank in Leeds possibly?

[Jessica@WhiteFieldTax]

From a brief read, and if I've missed something apologies I'm only looking in whilst on holiday, something doesn't sit right here.

If you took the bank account with you (your words) then the entity, I.e., your company must have been the same as accounts cannot be transferred between entities.

In which case the original "umbrella" wasn't an umbrella, possibly a managed service company operator. I'm surmising when you left them, you simply changed accountant from one who did a lot (the MSC operator) to a more mainstream/typical type arrangement.

The money accountant 2 says you owed to the "business", presumably the company you had all along, sounds like it was an issue on directors account, from overdrawing dividend, salary or expenses.

Harsh though it sounds the moral is running a company gives obligations as well as benefits, one of the obligations is to understand the finances in outline. Without sounding rude, it seems you didn't do that. Asking now is a bit like shutting the gate after the horse has bolted.

That said if you are still with accountant 2, then they should be able to explain the issue. Don't accept a fob off on time elapsed.

Again, sorry if I've missed something.

[SqueakyClean]

From a brief read, and if I've missed something apologies I'm only looking in whilst on holiday, something doesn't sit right here.

If you took the bank account with you (your words) then the entity, I.e., your company must have been the same as accounts cannot be transferred between entities.

In which case the original "umbrella" wasn't an umbrella, possibly a managed service company operator. I'm surmising when you left them, you simply changed accountant from one who did a lot (the MSC operator) to a more mainstream/typical type arrangement.

The money accountant 2 says you owed to the "business", presumably the company you had all along, sounds like it was an issue on directors account, from overdrawing dividend, salary or expenses.

Harsh though it sounds the moral is running a company gives obligations as well as benefits, one of the obligations is to understand the finances in outline. Without sounding rude, it seems you didn't do that. Asking now is a bit like shutting the gate after the horse has bolted.

That said if you are still with accountant 2, then they should be able to explain the issue. Don't accept a fob off on time elapsed.

Again, sorry if I've missed something.

You've not missed anything and thanks - been some help. I'm still trying to fit all the pieces together really and of course I understand the moral bit - this was a long time ago when I was new to contracting, hence the starting out with what I thought was an umbrella company. I have been with the same accountants now for the time between and I trust them and yes I do know how to run my business now.

Many thanks to all that tried to understand my position as much as I am trying to understand it now - 8 years ago! I've asked my accountants to open this can of worms up again so i'll take it from here.

bye.

[LisaContractorUmbrella]

Apologies for being rude by answering a question with a question, but I think you've earned it; why not?:-)

What is the main reason for going with an umbrella? Therein lies your answer - and you certainly don't expect to walk away from an umbrella and being 8k in the hole as they manage you PAYE etc. It is possible that my accountants have made a mistake, which is why I am revisiting it with them, but I thought I would see if anyone else has been in the same position.

No, you wouldn't expect to walk away from an umbrella owing £8k so, as others have said, you were probably with a Managed Service Company or a tax avoidance scheme.

[DaveB]

Orange and Gold are still in business, they look like a standard Contractor Accountancy firm providing legitimate Brolly and accountancy services. No dodgy claims on take home or HMRC compliance.

You could always ask your current accountants to talk to them directly....

Orange & Gold Contractor Accountancy - Limited company services - IR35 - Umbrella company services