Parasol - Employment costs

[Wary]

If they have not included your expenses they have not taken more money for their profit but simply that as more of your 'salary' was taxable you have paid more tax.

Remember all the expenses do is allow you to take more of your 'invoice value' tax free.

I think you've misunderstood what Parasol are doing. IIRC, they exclude your expenses when calculating Employers NI. They do, of course, only pay the true Employers to HMRC but pocket the difference as additional "Employment Costs". Effectively they're creaming off the equivalent of 13.8% of the total amount of your expenses.

Despicable!!!

[LisaContractorUmbrella]

If they have not included your expenses they have not taken more money for their profit but simply that as more of your 'salary' was taxable you have paid more tax.

Remember all the expenses do is allow you to take more of your 'invoice value' tax free.

D15 - can you clarify this point for us - were your expenses for the period included on your payslip???

[original PM]

Last few months invoices work out to be ok.

However i pulled a invoice out from last year august and ran the calculations on that and they deducted an extra £148.19 in a month! on top of the monthly charge of £119.50!

When i ran the calculation without including the expenses i got the figure i was charged by parasol.... so i assume that parasol were doing the calculations not including the expenses, therfore making more money and including it in the 'employment charges'

Need to get all my payslips out and see how long they had been doing it for and when they stopped.... as it looks like that they have included the expenses into account on the last few pay runs.

Very un professional of them to not let their customers know what they were up to!

If they have not included your expenses they have not taken more money for their profit but simply that as more of your 'salary' was taxable you have paid more tax.

Remember all the expenses do is allow you to take more of your 'invoice value' tax free.

[scope]

I tried to question Parasol about these costs as well following other thread on this forum, but it was very hard to get any numbers and an explanation from them.. In the end I left and set up a Ltd company, something I wish I had done years ago.

[The Spartan]

When I had problems with Parasol they were absolutely useless and insisted they did nothing wrong whatsoever, I know plenty of other people on here who used them and had the same problems.

[LisaContractorUmbrella]

Picked up a issue with 4 invoices from 10/12 (funny enough when the new payslip was introduced) till 01/12 .... Uncounted deductions totalling to £450.26!

Your umbrella company should be detailing all the deductions that they make on your payslip and should be able to provide a detailed breakdown of your earnings and tax paid; have they provided any explanation?

[The Spartan]

That's a lot!!! will you be getting it back?

[D15]

Picked up a issue with 4 invoices from 10/12 (funny enough when the new payslip was introduced) till 01/12 .... Uncounted deductions totalling to £450.26!

[D15]

Last few months invoices work out to be ok.

However i pulled a invoice out from last year august and ran the calculations on that and they deducted an extra £148.19 in a month! on top of the monthly charge of £119.50!

When i ran the calculation without including the expenses i got the figure i was charged by parasol.... so i assume that parasol were doing the calculations not including the expenses, therfore making more money and including it in the 'employment charges'

Need to get all my payslips out and see how long they had been doing it for and when they stopped.... as it looks like that they have included the expenses into account on the last few pay runs.

Very un professional of them to not let their customers know what they were up to!

[D15]

There are various threads about Parasol and their so called employment costs basically what they're doing is making extra money for themselves. I used them when I first decided to go contracting and I discovered this so I moved Umbrellas I'd advise you to do the same.

Thanks for the reply.... I've read various threads stating they are making extra money but I'm trying to work out how? Could you explain please?

[The Spartan]

There are various threads about Parasol and their so called employment costs basically what they're doing is making extra money for themselves. I used them when I first decided to go contracting and I discovered this so I moved Umbrellas I'd advise you to do the same.

[D15]

Can some one please explain to me how to work out what the employers NI should be?

I'm with Parasol and I know a few questions have been raised about them recently regarding their "employment costs".

I have been in contact with them earlier and they have provided me with the following explanation :

The employment cost calculation for your payslip is as follows:

Total Invoice Value*
- Parasol Margin = £119.50(per month)
- Employers Free NIC Allowance = £589.00 (for last tax year, this tax year it is now £624
- Business expenses =*
= £

Divide the total by 113.8, then multiply that total by 13.8 which will give the value of the employers NI/Employment costs


Is this correct? *Are they supposed to work this out on the actual total invoice value?*

They have worked out how they got the figure on February's invoice, however when I use the method on other invoices it does not add up.... The 2 other ones I have added up have come to a extra £67 and £75 being deducted.