Umbrella company wrongly assigned their payments to my personal account

[northernladuk]

The umbrella company that employed me

You've explained the situation and answered your own question in the first five words of the post. It beggars belief you've got yourself in to this situation. You know there are no expenses either don't you? None, zip, nada.

Great news is you won't have to pay the 20% on it so you've saved money

[lucyclarityumbrella]

Just goes to show what I say - it is really important that you speak with the umbrella before signing up, making sure you get a proper understanding of what you are getting. As Eek and Cojak say, what they have done is correct, and if you have to do your self assessment, then any income that has come from them will be classed as employed income and will not be taxed further, unless other earnings mean you reach other thresholds or further taxes are then due.

[eek]

As Cojak says it's you who has the misunderstanding here not Giant.

If you work via an umbrella company the worker (you) is directly employed by the umbrella (Giant). The umbrella will receive payment from the agency, deduct their fee, all appropriate taxes and then pay what is left (after tax) into your personal bank account.

If you are working via an umbrella company any limited company you own is completely irrelevant.

[cojak]

The umbrella did nothing wrong.

If you are using an umbrella, this is how they work. You work for them now - you are their employee. Only outside IR35 contracts work as you describe.

The good news is that you won't have to pay the 20% corporation tax.

I would advise that you reread your contract and how umbrellas work, because you've no idea how they work at the moment.

(Oh and if the agency said that you could work the way you've described, they lied...)

[fellow]

Hi there,

The umbrella company that employed me assigned wrongly all my company ltd income to my personal account although I didn't deduct a salary from my business account as I invested in developing the business to grow the company. They deducted from my payment 50% of the rate and payed it to HMRC and NI but to my astonishment they assigned all of it to my personal account which now come under self assessments and I will still need to pay additional 20% cooperate tax as well as the 50% they already deduct..

I have wrote to them and send them the bank statement that they have sent all the payments to the business account, and also the contract which was signed with the limited company.. but they completely ignoring me and there are no regulators that I can complain to..

Any helpful advice will be welcome.. or if anyone worked with Giant previously and know how to get them to correct it? please get in touch..

Thank you...