Reply to: Unbrella Scam? - Payslip Expenses

[WTFH]

Shame the brolly couldn't be arsed to explain themselves.

It will be there in the figures.

[JamesC34]

Surely it is illegal to suggest this is scam!

You'd better alert the appropriate authorities right away!

But read the posts properly, I asked the question, I didn't make an allegation.

I also used a hypothetical example. Imagine how excited you would have been if I had used the actual payslip! (as several others insisted I do).

[JamesC34]

Yes they are. Robbing you blind, pulling your pants down, giving you a right good reaming.

Sucks to be you.

What an imagination you have northernLAD.

Are you on the right website? There are plenty out there to cater for your particular needs.

[JamesC34]

They can't magic up £60 to pay you, unless the client is reimbursing your expenses.

Therefore, they use the £60 to reduce the amount of tax you're paying on your earnings. So, the basis for calculating tax is £740 - £60 = £680.

And the prize for the correct answer and winner of the thread goes to.....ladymuck

Thanks, you worked it out for us.

Shame the brolly couldn't be arsed to explain themselves.

[eek]

Numbers don't impact processes. The process is all I was trying to explain.

And one of the first things we don't actually know is if the process was followed or not.

That requires the actual details on the payslip.

[Paralytic]

To be fair most people that see things they don't like go straight for the 'is this Illegal' so he deserves some kudos for thinking out of the box.

But that said most people can also spell Umbrella.

Surely it is illegal to suggest this is scam!

[northernladuk]

I fail to see what makes you think this is a scam. Scam would be if you are meant to be paid 440 as net pay but they give you 100 and keep the rest as fees or something else. The 60 expenses is just a tax dodge, the expense never occurred, they are claiming that you spent 60 quid as business expenses and so deserve a tax relief on that. All looks perfectly fine.

To be fair most people that see things they don't like go straight for the 'is this Illegal' so he deserves some kudos for thinking out of the box.

But that said most people can also spell Umbrella.

[fullyautomatix]

Is my umbrella scamming me?

For obvious reasons I will use a hypothetical example of a payslip they provide. The payslip includes my basic rate (e.g. £20 per hour)

I work 37 hours. So 37 x 20 = £740.
Petrol expenses of £60 are listed on the payslip under basic rate as 'Expenses (non taxable)'

From my basic rate of £740, they deduct

• Salary Deductions (PAYE & NI)
• Company Margin
• Employers NI
• Apprenticeship Levy
  HYPOTHETICAL TOTAL £300

My Net Pay received is £740-300 = £440

So where, by slight of hand, have my £60 expenses disappeared to?
Can anyone explain? is this a scam or am I missing something?

I fail to see what makes you think this is a scam. Scam would be if you are meant to be paid 440 as net pay but they give you 100 and keep the rest as fees or something else. The 60 expenses is just a tax dodge, the expense never occurred, they are claiming that you spent 60 quid as business expenses and so deserve a tax relief on that. All looks perfectly fine.

[malvolio]

As I (and WTFH) have already pointed out we can't deal with hypotheticals and estimates here we need the actual numbers.

Without that we can't work out what is going on.

And don't forget some umbrellas will hold back holiday pay (and then illegal avoid paying it later - there is an example of an umbrella firm trying to do that earlier this week).

Numbers don't impact processes. The process is all I was trying to explain.

[eek]

Silly question perhaps. I assume the £60 is for petrol to somewhere other than your usual place of work?

If so, rather than faff around with the tax calculations, they deduct from any legitimate expense from the gross pay so they come out before the tax calculation so in effect they are tax free. And umbrellas always have done...

As I (and WTFH) have already pointed out we can't deal with hypotheticals and estimates here we need the actual numbers.

Without that we can't work out what is going on.

And don't forget some umbrellas will hold back holiday pay (and then illegal avoid paying it later - there is an example of an umbrella firm trying to do that earlier this week).

[malvolio]

Silly question perhaps. I assume the £60 is for petrol to somewhere other than your usual place of work?

If so, rather than faff around with the tax calculations, they deduct from any legitimate expense from the gross pay so they come out before the tax calculation so in effect they are tax free. And umbrellas always have done...

[eek]

How much has gone into your bank account?

That really doesn't help here - a better question is why are they paying fuel costs and not mileage..

But without actual exact figures down to the penny we can't help you

[northernladuk]

We'd need all the figures.

39-25-36 is a a good figure to start with.

[WTFH]

Is my umbrella scamming me?

For obvious reasons I will use a hypothetical example of a payslip they provide. The payslip includes my basic rate (e.g. £20 per hour)

I work 37 hours. So 37 x 20 = £740.
Petrol expenses of £60 are listed on the payslip under basic rate as 'Expenses (non taxable)'

From my basic rate of £740, they deduct

• Salary Deductions (PAYE & NI)
• Company Margin
• Employers NI
• Apprenticeship Levy
  HYPOTHETICAL TOTAL £300

My Net Pay received is £740-300 = £440

So where, by slight of hand, have my £60 expenses disappeared to?
Can anyone explain? is this a scam or am I missing something?

How much has gone into your bank account?
Could you detail out all the values for the

• Salary Deductions (PAYE & NI)
• Company Margin
• Employers NI
• Apprenticeship Levy

Your problem is that you have given "hypothetical". We'd need all the figures.

[ladymuck]

They can't magic up £60 to pay you, unless the client is reimbursing your expenses.

Therefore, they use the £60 to reduce the amount of tax you're paying on your earnings. So, the basis for calculating tax is £740 - £60 = £680.