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Higher tax band if timesheets not approved on time

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  • petafin
    replied
    Thanks for your answer. I guess I wasn't clear. I agree on all the stuff regarding that IR35 thing.

    But regarding the payment, I understand I was paid only when the timesheets were approved. But the issue is that the agency put me on the higher tax band because they paid me the 4 weeks of work in one payment but counted this as one week of work (because they set my payroll on weekly payment) so they assumed that my weekly salary was actually as high as 4 weeks worth of work.

    But the agency knows that those were 4 weeks of work, not just 1 week of work so did they have to put me on a higher tax band?

    @eek: thanks, I replied before reading your message. NI was fine, it's the income tax that was too high. So I will need to carry that "loss" until self-assessment I presume as the agency doesn't seem to suggest they can adjust the next payments to pay less tax. Fair enough as long as it can be fixed. Cheers.

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  • eek
    replied
    If your income tax is wrong - it will be fixed as the year continues or when you complete your self assessment form in April.

    National Insurance is a different matter but the difference is actually very small.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by petafin View Post
    Hi,

    As a IR35 contractor through an agency (not umbrella ),
    What's an IR35 contractor when it's at home?

    I am supposed to be paid weekly. I submitted my timesheets every week but my manager didn't approve them until 1 month so he approved 4 timesheets in one go.
    Even if you are inside is he still your manager? or is he your client?
    Now I received the payment for those 4 weeks from the agency but they put me on the higher tax band because they assume it's a 4 week payment but as if it was for just one week of work. Is that normal? Is that legal? My agency says that because I wasn't paid weekly, this is how it works if I am paid a large amount in one go.
    Why do people always assume when something happens they don't like the assume it's illegal?
    Can it be reversed? Why the agency cannot pay me 4 times a weekly salary instead of one big payment?

    Thanks.
    Why do you want it reversed? How's that going to help you now?

    Late payment is part of business. You could check your T&C's and rip them a new one around payment times but bottom line is you don't get paid without a signed timesheet. That is likely to be in your contract. This likes with your client manager not your agency so very little you can do.

    Leave a comment:


  • petafin
    started a topic Higher tax band if timesheets not approved on time

    Higher tax band if timesheets not approved on time

    Hi,

    As a IR35 contractor through an agency (not umbrella ), I am supposed to be paid weekly. I submitted my timesheets every week but my manager didn't approve them until 1 month so he approved 4 timesheets in one go.

    Now I received the payment for those 4 weeks from the agency but they put me on the higher tax band because they assume it's a 4 week payment but as if it was for just one week of work. Is that normal? Is that legal? My agency says that because I wasn't paid weekly, this is how it works if I am paid a large amount in one go.

    Can it be reversed? Why the agency cannot pay me 4 times a weekly salary instead of one big payment?

    Thanks
    Last edited by petafin; 29 November 2020, 19:00.

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