Umbrella company issues new user please help

[angryharfoot1986]

Hi all

My son just started work in the construction industry. He worked 28 hours in his first week, Monday to Wednesday and submitted his time sheets to his agency accordingly. He was made to register with an umbrella company called Impact.

Anyways, they did not pay him at all initially, and then he received a payslip for 8 hours ( instead of 28) and his gross pay was £72.00. The Umbrella deducted their fee of £19 , employees Tax and NI, pai ( whatever that is) and employers tax and NI which left him with ZERO pay for 8 hours work. He was distraught, a. that he received nothing at all for 8 hours work, and b. for not being paid the pother 20 hours they owed him.

He went back to the agency, who submitted the extra 20 hours @ £9 per hours total of £180. The umbrella then deducted tax ni, employers tax and ni and their fee leaving him with £112. when he pointed this out to the agency they said tough luck ( even though it was their mistake, and the umbrella company just did not care.

So my son ended up doing 28 hours hard work at £9 per hour which would have been £252 gros and actually took home £112 which is £4 per hour!!

This was the agency's error, yet they refused to reimburse him the umbrella costs which essentially came out of his meagre pay twice as they 'forgot' his extra 20 hours.

The other issue that really concerns me, is how can the umbrella company deduct ANY tax and NI on a payment of only £72?

This is way below the tax and NI threshold so I just don't get how they could have deducted either employees OR employers contributions on such a low figure...

My boy is distraught, he has refused to work for them again as what is the point if they don't pay him? He expected to take home around £180 with all their additional fees but instead only took £112. Surely this cannot be legal? Can someone please help me get to the bottom of this as jobs in this area are really scarce and agency work is really all there is around here for low skilled workers like my son.

Thanks in advance

Karen

Hi Karen,

Was your son able to find out what happened and get his money back?

[NotAllThere]

Certainly sounds very dodgy. Impact should have recalculated and certainly should not have applied the fee twice. I'm also a bit concerned about him being forced to use Impact.

Presumably, he signed a contract with Impact. What does it say about payments? Are Impact aware that this is one week's pay, not two, so the fee should not be applied twice. It is correct that the agency don't care what Impact do. Your son had no contract with them. It is Impact who have, apparently, behaved improperly.

Probably the best thing is to read carefully your son's contract with Impact. If they've not done things according to the contract, then write them a polite letter explaining exactly where they've made their error, and asking them for the money they owe. If that doesn't work, then you might consider taking them to the small claims court.

[Whorty]

Hi all

My son just started work in the construction industry. He worked 28 hours in his first week, Monday to Wednesday and submitted his time sheets to his agency accordingly. He was made to register with an umbrella company called Impact.

Anyways, they did not pay him at all initially, and then he received a payslip for 8 hours ( instead of 28) and his gross pay was £72.00. The Umbrella deducted their fee of £19 , employees Tax and NI, pai ( whatever that is) and employers tax and NI which left him with ZERO pay for 8 hours work. He was distraught, a. that he received nothing at all for 8 hours work, and b. for not being paid the pother 20 hours they owed him.

He went back to the agency, who submitted the extra 20 hours @ £9 per hours total of £180. The umbrella then deducted tax ni, employers tax and ni and their fee leaving him with £112. when he pointed this out to the agency they said tough luck ( even though it was their mistake, and the umbrella company just did not care.

So my son ended up doing 28 hours hard work at £9 per hour which would have been £252 gros and actually took home £112 which is £4 per hour!!

This was the agency's error, yet they refused to reimburse him the umbrella costs which essentially came out of his meagre pay twice as they 'forgot' his extra 20 hours.

The other issue that really concerns me, is how can the umbrella company deduct ANY tax and NI on a payment of only £72?

This is way below the tax and NI threshold so I just don't get how they could have deducted either employees OR employers contributions on such a low figure...

My boy is distraught, he has refused to work for them again as what is the point if they don't pay him? He expected to take home around £180 with all their additional fees but instead only took £112. Surely this cannot be legal? Can someone please help me get to the bottom of this as jobs in this area are really scarce and agency work is really all there is around here for low skilled workers like my son.

Thanks in advance

Karen

Could be worth contacting Lucy at Contractor Umbrella. She/they have a good reputation on here. She is open with her advice. Good luck.

[kazza0011]

Hi all

My son just started work in the construction industry. He worked 28 hours in his first week, Monday to Wednesday and submitted his time sheets to his agency accordingly. He was made to register with an umbrella company called Impact.

Anyways, they did not pay him at all initially, and then he received a payslip for 8 hours ( instead of 28) and his gross pay was £72.00. The Umbrella deducted their fee of £19 , employees Tax and NI, pai ( whatever that is) and employers tax and NI which left him with ZERO pay for 8 hours work. He was distraught, a. that he received nothing at all for 8 hours work, and b. for not being paid the pother 20 hours they owed him.

He went back to the agency, who submitted the extra 20 hours @ £9 per hours total of £180. The umbrella then deducted tax ni, employers tax and ni and their fee leaving him with £112. when he pointed this out to the agency they said tough luck ( even though it was their mistake, and the umbrella company just did not care.

So my son ended up doing 28 hours hard work at £9 per hour which would have been £252 gros and actually took home £112 which is £4 per hour!!

This was the agency's error, yet they refused to reimburse him the umbrella costs which essentially came out of his meagre pay twice as they 'forgot' his extra 20 hours.

The other issue that really concerns me, is how can the umbrella company deduct ANY tax and NI on a payment of only £72?

This is way below the tax and NI threshold so I just don't get how they could have deducted either employees OR employers contributions on such a low figure...

My boy is distraught, he has refused to work for them again as what is the point if they don't pay him? He expected to take home around £180 with all their additional fees but instead only took £112. Surely this cannot be legal? Can someone please help me get to the bottom of this as jobs in this area are really scarce and agency work is really all there is around here for low skilled workers like my son.

Thanks in advance

Karen