CXC Global Umbrella + Tax Back?

[ronanm]

Hi,

I have been contracting for the first time and am just coming to the end of a 3 month stint. I get £1750 per week. I claim back £320 a week rent, but invariably get paid £1222 per week (c. £902 after tax + the £320 rent reimbursement).

My agency (CXC Global) have screwed up payments in the past. For example, when I relocated to London (from Ireland) at the start of this contract, I was told I could stay anywhere. So, I booked myself into a £700 per week serviced apartment for a month. At the end of that month, they said they wouldn't pay for it. Then I produced a letter they'd signed saying I could recover my rent expenses "no matter what the cost." After that debacle, I downgraded to a £320 apartment per week (these place are nothing special at all - just the term of the rental agreement means it's a lot more £££ than it should be).

Anwyay, what I'd like to know, is will I get taxback at the end of this year? I think I shold have more in the bank than I and between the rent screw up (they reimbursed part of this but implied I'd get it back at a later date) and them missing a wage payment one week (they said my tax would adjust accordingly) I am wondering if I will see any of it?

[MarkOD]

this rent will never be reimbursed to you, it's only offset as an expense. I imagine they were correct in saying you can claim what you wish as in theory you can, whether you offset £700 or £320 it's never reimbursed either way and doesn't make any difference to them.

i doubt you'll get it back, the only way i imagine you can do it is by getting them to offset it on the remaining payments of yours

[ronanm]

Thanks re: rent. Am still not sure how it works - was led to believe that they would cover it or that it would be 100% reimbursed via expenses/HRMC :-( Don't have a clue about the accounting side (have read a few things but, unfortunately, doesn't make much sense).

What about the taxback? I have only been working for 3 months (unemployed last year) - will the umbrella claim this back for me or do I have to do so myself? Anyone know?

Thanks a lot for the advice.

[northernladuk]

Is it not generally wise to understand what is going on first before signing up for a £2800 per month rental agreement? When people say anywhere they tend to assume you are not going to take the tulip

I get £1750 per week. I claim back £320 a week rent, but invariably get paid £1222 per week (c. £902 after tax + the £320 rent reimbursement).

£1750 = £902+tax... man thats a lot of tax or is this just not worded very well. Is your 1750 gross? does inc rent.

Thanks re: rent. Am still not sure how it works - was led to believe that they would cover it or that it would be 100% reimbursed via expenses/HRMC :-( Don't have a clue about the accounting side (have read a few things but, unfortunately, doesn't make much sense).

What about the taxback? I have only been working for 3 months (unemployed last year) - will the umbrella claim this back for me or do I have to do so myself? Anyone know?

I think it is about time you got your paperwork out from the umbrella and read it. I know it can be a little confusing at times but I am sure it is not that bad that leaves you in a position where you don't know how it works. It's about time you started takin a grip on your finances. You are going to be absolutely screwed when the time comes to go LTD!!!!

[Hex]

What about the taxback? I have only been working for 3 months (unemployed last year) - will the umbrella claim this back for me or do I have to do so myself? Anyone know?

Thanks a lot for the advice.

You fill in your Self Assessment tax return and after this has been submitted to HMRC and processed you will get tax back if you've overpaid.

[ronanm]

Is it not generally wise to understand what is going on first before signing up for a £2800 per month rental agreement? When people say anywhere they tend to assume you are not going to take the tulip



£1750 = £902+tax... man thats a lot of tax or is this just not worded very well. Is your 1750 gross? does inc rent.



I think it is about time you got your paperwork out from the umbrella and read it. I know it can be a little confusing at times but I am sure it is not that bad that leaves you in a position where you don't know how it works. It's about time you started takin a grip on your finances. You are going to be absolutely screwed when the time comes to go LTD!!!!

This is what my latest payslip says for the week:

Actual DAYS 5.00

Invoice Value 1,750.00

Management Fee 87.50

NI Employer 139.86

Pre Tax Adjustment 0.00

Gross Salary 1,202.64

PAYE 215.62

NI Employee 84.33

Net Salary 902.69

Business Expenses Applied 320.00

Client Expenses 0.00 0.00

Total Payment 1,222.69


So my net is only £902 - is that not pathetically low?

[LisaContractorUmbrella]

Thanks re: rent. Am still not sure how it works - was led to believe that they would cover it or that it would be 100% reimbursed via expenses/HRMC :-( Don't have a clue about the accounting side (have read a few things but, unfortunately, doesn't make much sense).

What about the taxback? I have only been working for 3 months (unemployed last year) - will the umbrella claim this back for me or do I have to do so myself? Anyone know?

Thanks a lot for the advice.

Unless your employment agency has agreed to pay your expenses they will not be reimbursed through your umbrella company. They will be treated as a tax benefit which means that your taxable income will be reduced by the value of the expense i.e. if your gross income is £1000 per week and your expenses are £200 per week, your taxable income will be £800 per week.

You should remember that expenses will reduce your tax liability but you have to incur the cost in the first place and it has to be allowable, by HMR&C, as an expense.

[LisaContractorUmbrella]

This is what my latest payslip says for the week:

Actual DAYS 5.00

Invoice Value 1,750.00

Management Fee 87.50

NI Employer 139.86

Pre Tax Adjustment 0.00

Gross Salary 1,202.64

PAYE 215.62

NI Employee 84.33

Net Salary 902.69

Business Expenses Applied 320.00

Client Expenses 0.00 0.00

Total Payment 1,222.69


So my net is only £902 - is that not pathetically low?

Your net is £1222.69 but from that you would have to pay your rent of £320 for the following week

[ronanm]

Unless your employment agency has agreed to pay your expenses they will not be reimbursed through your umbrella company. They will be treated as a tax benefit which means that your taxable income will be reduced by the value of the expense i.e. if your gross income is £1000 per week and your expenses are £200 per week, your taxable income will be £800 per week.

You should remember that expenses will reduce your tax liability but you have to incur the cost in the first place and it has to be allowable, by HMR&C, as an expense.

Thanks a lot Lisa - makes more sense now

[ronanm]

Your net is £1222.69 but from that you would have to pay your rent of £320 for the following week

So Net is £1222.69. I physically pay £320 each week to my landlord and they set aside £320 for next week's rent - it that right?