Reply to: Umbrella advice

[bangface]

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.

This is correct BUT if he only submitted a P46 to them he will lose the cumulative tax allowance he would have been entitled to if he had submitted a P45.

[cailin maith]

He did go completly OTT..... "How to stay under the radar", by Mr Truth or dare

[Pondlife]

And he's gone!

[Ardesco]

Greg gets my vote too.... but again, I have to say, I don't really give a toss who owns this site.... I just don't understand what all the furore is about - Anyway, sure your man "truth or dare" will be banned in a minute....

I couldn't care either and i'm expecting the e-mails to be advice given to the person who owns the business if they are not some made up trash. I'm sure Old Greg will be able to sniff out the truth however and be able to anem and shame this numpty for making up false e-mails.

[cailin maith]

Wonder why they haven't binned him off yet?

[Pondlife]

19 posts of the same crap FFS!

[cailin maith]

Greg gets my vote too.... but again, I have to say, I don't really give a toss who owns this site.... I just don't understand what all the furore is about - Anyway, sure your man "truth or dare" will be banned in a minute....

[Ardesco]

Old Greg is your man.

I suspect this is yet more tosh though.

[cailin maith]

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

[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

[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.

[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!!!

[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....

[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

[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.