Contractor Umbrella - calculating two/three weeks on one payslip

[LisaContractorUmbrella]

indeed there is no such verb as to of

you can have to have though!!

I had to read that 3 times before it made sense

[original PM]

indeed there is no such verb as to of

you can have to have though!!

[moggy]

"would have" or "would've", never "would of".

[LisaContractorUmbrella]

"would have" or "would've", never "would of".

Excellent use of

[Blackdog]

Probably using a p46 as he hasn't handed in a p45 too, agreed with Andy, would of been best to have called them to find out.

"would have" or "would've", never "would of".

[LisaContractorUmbrella]

PAYE works on a cumulative basis (provided that you are not on a Wk1/Mnth1 tax code) which means that any irregularity in payment frequency will not affect your overall tax bill. As you are aware, ContractorUmbrella will always pay you on the day that recognised funds are received from your agency/client and we will always pay you whatever we receive. In an ideal world we will receive payment for one weeks work each week and your pay frequency will never change. However, if we receive payment for 2 weeks work we have two options i. we pay you for two weeks work as a weekly salary or ii. we convert your pay frequency within payroll to fortnightly rather than weekly.

If we process 2 weeks into one it is highly likely that we will not receive payment for you the following week or that we will not have received payment for you the previous week - this means that you will have the benefit of 2 weeks tax free allowance which will then have the effect of reducing your tax payable for that period. Your tax free allowance for the year is divided into 52 equal amounts and if one of the allowances is not used it will be effectively carried over to the next period.

If we were to adjust your pay frequency within payroll from weekly to fortnightly, that would then preclude us from making any other payments to you in the following 2 week payroll period (which runs from Thursday to Thursday) unless we were to roll back your initial payment, roll the two payments up together and then re-process them which would, again, increase your taxable earnings.

I hope this all makes sense and explains the reason for the payroll decision that we made but if you would like a further explanation I am happy to answer you on here or you can contact your account manager.

[moggy]

Probably using a p46 as he hasn't handed in a p45 too, agreed with Andy, would of been best to have called them to find out.

[Andy Hallett]

It honestly amazes me that people choose to post this sort of stuff without first speaking to their umbrella / agency.

This sort of thing must happen 'day in day out' and I assume they can give you all the answers.

FWIW I assume you have gone through at a higher rate which will work its way through in subsequent weeks. You have an annual tax allowance / calculation - not a weekly one. NI, now that's a whole different story.

[Blackdog]

Contractor Umbrella have calculated my last two weeks work on the same payslip. Also, I took a two week holiday earlier in the year and they did the same - they calculated the two weeks holiday plus my first week back together (three weeks on the same payslip).

Just working out how much more I've been getting taxed a result - my PAYE is usually around £190 per week. For the last payslip it is £593!

Is there anything I can do about this?

Er, pick up the 'phone and raise your query directly with them?

[trumpet]

Contractor Umbrella have processed my last two weeks work on the same payslip. Also, I took a two week holiday earlier in the year and they did the same - they processed the two weeks holiday plus my first week back together (three weeks on the same payslip).

Just working out how much more I've been getting taxed a result - my PAYE is usually around £190 per week. For the last payslip it is £593!

Is there anything I can do about this?