Originally posted by northernladuk
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Umbrella company problem with expenses (+£25K owed)
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Blame Game
Originally posted by stek View PostI can't see where the brolly is at fault here, the error is entirely yours.
Imagine if you'd been underpaid, would you feel the same?
In reality the Umbrella Company are only after setting their accounts straight and getting money from you to settle the Employment Taxes that would have been due if the expenses had been paid out as extra wages.
So you owe then £25,000 on which they will deduct 13.8% Employers NI and 42% to cover Income Tax and Employees NI. So they will pay you £12,742.
So the net cost to you is circa £12,200.
Don't think you can litigate as you don't pay them to process and verify your expenses and clearly the problem with on-line portals is that there is no third party verification. Although if they have a dispensation they should be vetting expenses and making sure that all are valid.Comment
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The umbrella company should have verified the expenses - we have an online portal but claims are still manually checked - a claim of 500 miles per day should have been picked up purely because it wouldn't be possible to do that sort of mileage and then do a day's workComment
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Originally posted by LisaContractorUmbrella View PostThe umbrella company should have verified the expenses - we have an online portal but claims are still manually checked - a claim of 500 miles per day should have been picked up purely because it wouldn't be possible to do that sort of mileage and then do a day's workComment
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Originally posted by International Adviser View PostThat's the right way to do it. Unfortunately, it seems that this poor chap believed that there was a watchful eye keeping him safe, only to find out that it was a computer programme that said yes or no, or just said yes to everything.Comment
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