Reply to: Paystream Tax Application to Payroll

[eek]

I understand but that's the organisation's problem. Educashun, Educashun and Educashun. Oh that and according to the consultancy firm I work through IR35 investigation insurance... Not a policy I agree with but what the hell I'm subcontracting through a consultancy firm to a multi-national defence company and everyone is happy.

It's not the banks problem - they have a solution that "works" for them. The problem it has created is for contractors where previously a bank would have 50 or so contractors on a project they currently have a total of 5, everyone else is via a consultancy.

Which tells me 2 things

1) things aren't going to change
2) going forward the market for contractors isn't what it used to be.

[Zigenare]

In a lot of cases it won't change. There is no way an organization (say a UK bank) that can't trust its staff to drag contractors inside IR35 will subject itself to a Chapter 10 investigation - less risk (and less cost once the risk is added) to outsource staff via a large consultancy..

And if they are an international firm they will all have experience of the IRS that says take the safer option...

I understand but that's the organisation's problem. Educashun, Educashun and Educashun. Oh that and according to the consultancy firm I work through IR35 investigation insurance... Not a policy I agree with but what the hell I'm subcontracting through a consultancy firm to a multi-national defence company and everyone is happy.

[eek]

Oh the joys of IR35...

Bottom line is if enough people refuse to accept inside IR35 roles then things will change!

In a lot of cases it won't change. There is no way an organization (say a UK bank) that can't trust its staff to drag contractors inside IR35 will subject itself to a Chapter 10 investigation - less risk (and less cost once the risk is added) to outsource staff via a large consultancy..

And if they are an international firm they will all have experience of the IRS that says take the safer option...

[Zigenare]

So they paid you for March on April 6th when they received the money and for April before May 5th (again when they received the money).

I doubt there is much you can do about that except ensure that your March 2024 work is paid for after April 6th 2024 - at which point the following will have occurred

Month 1 - 2 payments
Month 2-11 1 payment each month

Month 12 no payment so HMRC will need to refund you some income tax (on employee NI you will be ahead but will lose slightly on employer NI).

The other thing to add is while you may have paid £1500 too much income tax at the moment that will largely correct it self over subsequent months as the PAYE system will self correct things as time goes by.

Oh the joys of IR35...

Bottom line is if enough people refuse to accept inside IR35 roles then things will change!

[eek]

Sorry you're right. I meant to say that they paid March's wages in 23/24 in month 1 and then April also in month 1 which means I have been taxed over 50%. Called the agency and had a heated row with Paystream as they can correct it (according to HRMC) even if it was paid in the wrong tax year. I have lost over £1,500 this month and more over the year as March's pay (paid in 23/24) will now put me over the tax bracket that I am on..... HMRC said that if they have made a mistake with their FPS , then they can correct it but i suppose that will be too much work for them to do.

So they paid you for March on April 6th when they received the money and for April before May 5th (again when they received the money).

I doubt there is much you can do about that except ensure that your March 2024 work is paid for after April 6th 2024 - at which point the following will have occurred

Month 1 - 2 payments
Month 2-11 1 payment each month

Month 12 no payment so HMRC will need to refund you some income tax (on employee NI you will be ahead but will lose slightly on employer NI).

The other thing to add is while you may have paid £1500 too much income tax at the moment that will largely correct it self over subsequent months as the PAYE system will self correct things as time goes by.

[justint]

That makes very little sense...

Sorry you're right. I meant to say that they paid March's wages in 23/24 in month 1 and then April also in month 1 which means I have been taxed over 50%. Called the agency and had a heated row with Paystream as they can correct it (according to HRMC) even if it was paid in the wrong tax year. I have lost over £1,500 this month and more over the year as March's pay (paid in 23/24) will now put me over the tax bracket that I am on..... HMRC said that if they have made a mistake with their FPS , then they can correct it but i suppose that will be too much work for them to do.

[eek]

They have just paid my April wages (paid in on the 5th of May) and they have put it in as month 13 in 22/23 tax year. Now looking at complaining to the FCA as they are refusing to sort it out. Lost 60% in NI and Tax

That makes very little sense...

[justint]

They have just paid my April wages (paid in on the 5th of May) and they have put it in as month 13 in 22/23 tax year. Now looking at complaining to the FCA as they are refusing to sort it out. Lost 60% in NI and Tax

[vetran]

What happened to his OnlyFans service?

Musk had it closed down as too offensive and controversial?

[eek]

Hi. Payslip was sent on Wed 5th (week 53 of the tax year) and Payment made on the 6th. I am going to speak to the Revenue today. Thx

And what date is on the payslip?

[SueEllen]

what do you expect when the court garnished your wages after the naked twerking incident?

What happened to his OnlyFans service?

[vetran]

I'm with Paystream my payslip this week was dated 05/04 and tax was correctly applied to the previous tax year 22/23 (with my tax code I have a take home pay of 45% FFS)

what do you expect when the court garnished your wages after the naked twerking incident?

[SueEllen]

Make sure the changes are correct.

To be fair normal employers and agencies do this as well so it is unsurprising umbrella companies do.

It is really up to tax payers themselves, especially well paid ones, to keep an eye on the tax they pay.

Paystream made incorrect deductions and left me with a £5k tax bill.

Myself and most other people I know have always over paid. The few that have under paid are always guttered.

[Wilbur1]

When were you paid - I suspect it was Monday -> Wednesday and not yesterday.

Hi. Payslip was sent on Wed 5th (week 53 of the tax year) and Payment made on the 6th. I am going to speak to the Revenue today. Thx

[ladymuck]

I'm with Paystream my payslip this week was dated 05/04 and tax was correctly applied to the previous tax year 22/23 (with my tax code I have a take home pay of 45% FFS)

That's because 5 April is in the 22/23 tax year.

If your payslip was dated 6 April that would be in the 23/24 tax year.