Hi,
I recently had to switch to an umbrella due to IR35.
I got paid for the first time in the May tax month. I submitted my timesheet for June as normal and my agency sent the money to the umbrella before the 4th of June. This meant that the Umbrella processed the payment within the same tax month as the previous month's payments. I ended up paying way more tax than I should have.
My questions are:
1. If the client is set up as being paid monthly in the system wouldn't it make more sense to delay the payment until the next tax month?
2. Even if there was nothing the umbrella could have done, isn't the tax allowance from tax month 1 supposed to carry over to tax month 2 if I never got paid in April?
3. If I don't get paid during the June tax month and get paid in July next will I get the overpaid PAYE back?
Thanks
I recently had to switch to an umbrella due to IR35.
I got paid for the first time in the May tax month. I submitted my timesheet for June as normal and my agency sent the money to the umbrella before the 4th of June. This meant that the Umbrella processed the payment within the same tax month as the previous month's payments. I ended up paying way more tax than I should have.
My questions are:
1. If the client is set up as being paid monthly in the system wouldn't it make more sense to delay the payment until the next tax month?
2. Even if there was nothing the umbrella could have done, isn't the tax allowance from tax month 1 supposed to carry over to tax month 2 if I never got paid in April?
3. If I don't get paid during the June tax month and get paid in July next will I get the overpaid PAYE back?
Thanks
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