Paid twice in 1 accounting month

[eek]

It's not a fault of the agency or umbrella. They are paying you according to the contract terms. You submit timesheets each month and they pay you each month. It's not up to them to manage your tax affairs.

Assuming you are not on an emergency tax code (did you check that as SiMac suggested?) then you will get the PAYE element back in your next pay packet. If you're on emergency tax, then why have you not given the umbrella a P45? Do you have two jobs, or are on two payrolls? If so, then you'll have to wait to the end of the tax year as that's not the umbrella's fault, no matter how much you think you're being treated unfairly.

A nanosecond search on google for the term "reclaim overpaid NI" brings up this result, which will tell you more about how to claim the probably insignificant amount of NI you've overpaid: https://www.gov.uk/claim-national-insurance-refund

Was about to reply but there is no need ^ is just about everything you need to know.

Given that OP is on emergency pay it will be sorted out when one of the following occurs:-

1) over the next few pay pockets after your umbrella receives the correct tax code (which the OP can sort out himself)
2) In January 2023 after he completes the self assessment form.

But having had a quick look at a caculator I can see why the OP is complaining.

£10,000 a month generates a take home of £5800.
£20,000 a month generates a take home £10700 - which means the OP is going to be £900 down until things get caught up in July, although he may have the same problem in September with both his July and August payments being in the August tax month.

Oh and I can't think of any fix for the issue except finding an agency that pays slightly less rapidly...

[Mobix]

But having had a quick look at a caculator I can see why the OP is complaining.

£10,000 a month generates a take home of £5800.
£20,000 a month generates a take home £10700 - which means the OP is going to be £900 down until things get caught up in July, although he may have the same problem in September with both his July and August payments being in the August tax month.

Oh and I can't think of any fix for the issue except finding an agency that pays slightly less rapidly...

The ratio of money missed out is actually a bit worse due to student loan. That money now could have been used to pay for a deposit or invested. I don't know, if I was designing a payroll system for contractors I would have a check is this person on a monthly timesheet? If yes, check if they have already been paid this month, if yes ask if they want to process 2 payments within the same tax month. Anyway I'm ranting.

As for the P45. This is probably my fault but I assumed that If I started working with the umbrella on the 5th of April then there was no need for me to provide a new P45 since I couldn't have paid any tax so far?

[eek]

The ratio of money missed out is actually a bit worse due to student loan. That money now could have been used to pay for a deposit or invested. I don't know, if I was designing a payroll system for contractors I would have a check is this person on a monthly timesheet? If yes, check if they have already been paid this month, if yes ask if they want to process 2 payments within the same tax month. Anyway I'm ranting.

As for the P45. This is probably my fault but I assumed that If I started working with the umbrella on the 5th of April then there was no need for me to provide a new P45 since I couldn't have paid any tax so far?

Emergency tax codes tells payroll to ignore accumulative figures - divide the allowances by 12 and use that 12th as the starting point for all calculations. If you had accumulative figures the income tax and PAYE figures would be better but it's unlikely they would be the great fix you hoped them to be.

I would just be thankful that you did this in May and not in March - if that was the case getting the excess Student loan payment back would be nigh on impossible.

Oh and while it may make sense for umbrella firms to retain money for a few days, in reality you really, really, really don't want umbrella firms doing that.

[hobnob]

Given that OP is on emergency pay it will be sorted out when one of the following occurs:-

1) over the next few pay pockets after your umbrella receives the correct tax code (which the OP can sort out himself)
2) In January 2023 after he completes the self assessment form.

It's worth noting that Jan 2023 is the *deadline* for the SATR (2021/2022), but you don't have to wait that long. I submitted mine (for 2020/2021) on 8th May, and got the rebate on 17th May. The only reason I waited that long (rather than doing it on 7th April) was to get the annual interest summary from my bank account, so that I could enter the exact amount in the SATR.

In OP's case, it would be plausible to reclaim the extra tax in May 2022 rather than Jan 2023.

[Mobix]

You mentioned umbrella receiving the correct tax code but this was their response:

"You would have been allocated the tax code 1257L M1W1 as when you completed the new employee starter form, you entered that this was now your only job."

By the sounds of it the umbrella thinks this is the correct tax code but according to you guys this isn't?

[eek]

You mentioned umbrella receiving the correct tax code but this was their response:

"You would have been allocated the tax code 1257L M1W1 as when you completed the new employee starter form, you entered that this was now your only job."

By the sounds of it the umbrella thinks this is the correct tax code but according to you guys this isn't?

It's an emergency code see https://www.which.co.uk/money/tax/in...s-ambdb8y7h2yx - without a p45 it is where you end up until you fix it

[Mobix]

Without P45? I gave them my P45 from the limited company. They said they do not need it though and asked me not to send it to them. Do you mean P45 from the current tax year?

[eek]

In which case not a clue as they have enough information to put you on as 1257L without any emergency bits

[Mobix]

Got any umbrellas you recommend? They are being quite bad and the screwed up big time at the beginning by processing my monthly invoice as if it was weekly.

[northernladuk]

Got any umbrellas you recommend? They are being quite bad and the screwed up big time at the beginning by processing my monthly invoice as if it was weekly.

Clarity Umbrella. Lucy posts on here regularly and knows her stuff. I was with her under a different group but they would be my first choice.