Umbrella advice

[malvolio]

I cannot speak for Giant but Parasol are Dangerous for your wallet they loose you a great amount of money when they slam you with their double taxation for 2 payments in anyone tax period.

They done this to me in tax period 3rd July to 5th August by delaying first payment so it enroached the beginning of that period - and then rushed through another payment to get it through late on Friday 3rd august to beat the cut off and lost me a huge sum in double taxation.

And I mean huge!! enough to get a family holiday for 2 weeks on the med!!

Be warned they will be O.K for a while then slam you like I have just explained. They are also very arrogant and always ignore mails when you need answers.

Awful service, arrogant, unexplainable processes and never an answer.

Sorry but that's bollocks. Tax doesn't work like that, especially under PAYE. So nice try but no banana

[Ardesco]

While i'm sure Parasol aren't brilliant (being an umbrella company and all) this is a load of tosh.

You won't have lost any money because you'll get a tax rebate at the end of the year if you have paid too much and the fact you are working through an umbrella and on PAYE means that the tax paid will reduce on your next pay slip to account for extra tax paid the month before.

In the long run you can't loose out unless they force through an extra payment just before change of financial year and that payment knocks you into a higher tax band (I can't see why they would do this though, they earn interest on your money if they hold onto it).

[malvolio]

No ? O.K Read extract

Tax month 4 covered 2nd July - 5th August, today is the first day of the new tax month 5, which means that you had been paid twice in the same tax period.

Now what was you saying ?

I know this is hard to understand, but tax is cumulative until April 5th. If you have overpaid in one month, it will correct itself in the next month. Or are you going to come back here in September and complain that your tax for the month has gone right down and you think you should be paying more?

It seems Parasol are not the arrogant ones here. Listen to what you're being told.

[Ardesco]

No ? O.K Read extract

Tax month 4 covered 2nd July - 5th August, today is the first day of the new tax month 5, which means that you had been paid twice in the same tax period.

Now what was you saying ?

We are not saying that you have not been paid twice in the same tax period, I have before been paid 5 times in the same tax period. The point (that you are not getting) is that it means nothing.

You cannot loose money by being paid more than once in the same tax period unless the tax period is period 12 and the payment made puts you into a higher tax band and should not have been made until the start of the new financial year (Tax period 1 again).

You need to try and understand this, paid less frequently != paying less tax. You pay a fixed amount of tax depending on your annual income, how that annual income is paid to you makes absolutely zero difference to the amount of tax that you pay. If you think it does you really don't understand wages and taxation and should really stop trying to make out that you do.

[LisaContractorUmbrella]

No ? O.K Read extract

Tax month 4 covered 2nd July - 5th August, today is the first day of the new tax month 5, which means that you had been paid twice in the same tax period.

Now what was you saying ?

As Malvolio rightly says PAYE evens itself out over the course of a financial year and you cannot pay 'double' tax. What may have happened is that you were paid twice in the same payroll period and the second payment was much lower than you were expecting. This is because you receive a certain amount of tax free pay each year which is then divided into 12 so a proportion can be allocated to each payroll month - this allowance can only be used once in the same payroll period. Therefore if you had two identical payments processed within the same month the second would be lower as the tax free amount had not been applied

HTH

[cailin maith]

Under the PAYE system - your tax evens it's self out over the 12 months. If it doesn't you get a rebate at the end of the year or (if really unlucky) owe them some. It's that simple....

[Ardesco]

Tax month 4 covered 2nd July - 5th August, today is the first day of the new tax month 5, which means that it is not possible for your pay processed on Friday even though it was paid on the 3rd and the new tax was on the 5th.

tax month 4 has now closed and all figures have been forwarded to HMRC.

What was you saying again ?

You don't understand tax!

Go and talk to somebody who does and get them to explain it to you. Of course figures have been forwarded to HMRC, they need to know how much tax you have paid so they can process a rebate at the end of the year if you have paid too much, or chase you up for tax if you have not paid enough.

(And for heavens sake what sort of grammer is this??? -> "What was you saying again?")

Oh and Mal stop getting a post in while i'm typing mine dammit!!!

[Ardesco]

For an invoice of 4.7k I had deductions as follows
GROSS PAY - £4,7
>NET PAY - £3,***
>TAX - £854.92
NI Employer £869
NI employee £829

I do not remember having a tax rebate in 3 years from these people?

NI

*sigh*

You don't get a tax rebate from an Umbrella company. You get a reduced rate of tax in your next pay slip to account for the extra tax paid in the previous one. This reduced rate will split over the remaining months in the financial year and the total amount of tax paid will even itself out.

If you genuinely have paid too much tax you need to contact IR and find out why they haven't sent you out a rebate.

[LisaContractorUmbrella]

For an invoice of 4.7k I had deductions as follows
GROSS PAY - £4,7
>NET PAY - £3,***
>TAX - £854.92
NI Employer £869
NI employee £829

I do not remember having a tax rebate in 3 years from these people?

NI

If you worked most months in a year it is unlikely you will receive an actual rebate as your taxable earnings would still be higher than your accumulated tax free pay. If you were paid two amounts in one month and then skipped a month and the amounts were the same you should notice a reduction in tax. At the end of the day you only pay tax on your earnings and if your earnings are higher in one month than the previous month you will pay more tax
HTH

[cailin maith]

Where is yer man - has he been banned and completly removed? Good on ya Mod's, he was doing my head in!!!