Tax & Advanced pay between assignments

[Thompsk]

If you are on a standard tax code and unless you are earning over about £18,000 a month there's no way your take home pay should be only 50%. The only thing I can think is that your umbrella company are holding onto the PBA - is that the case?

Hi
I'm certainly not earning over £18,000 a month and the strange thing about the advance PBA is that while it appeared in my previous tax years weekly payments and was subject to tax & NI and I had a YTD total, so far this tax year it only shows in the YTD total and never in the weekly payments part. I wonder if the advance PBA is not governed by tax year but contract period and as a previous poster put that as it was included in my P60 for last tax year that it won't this year? Its just confusing as it shows in my YTD.

[VelcroPower]

So, is the 'PBA' retained by the umbrella company and then paid out should the contractor find themselves between assignments or is it just a label on the payslip? If payments aren't made when the contractor's between assignments then I don't see how it can realistically be called Pay Between Assignments

Like I say - smoke and mirrors. It's not retained it's "advanced" to the contractor for them to then draw on when they are between assignments. It fulfills the criteria required by the legislation if not exactly the spirit.

[VelcroPower]

Hi
I'm certainly not earning over £18,000 a month and the strange thing about the advance PBA is that while it appeared in my previous tax years weekly payments and was subject to tax & NI and I had a YTD total, so far this tax year it only shows in the YTD total and never in the weekly payments part. I wonder if the advance PBA is not governed by tax year but contract period and as a previous poster put that as it was included in my P60 for last tax year that it won't this year? Its just confusing as it shows in my YTD.

The PBA element on your payslip will be the total amount paid over the employment and not split between tax years.

PBA is per employment rather than per tax year. i.e. if you left Parasol today and then went back in a couple of months you would have to fill up the pot all over again.

[LisaContractorUmbrella]

Hi
I'm certainly not earning over £18,000 a month and the strange thing about the advance PBA is that while it appeared in my previous tax years weekly payments and was subject to tax & NI and I had a YTD total, so far this tax year it only shows in the YTD total and never in the weekly payments part. I wonder if the advance PBA is not governed by tax year but contract period and as a previous poster put that as it was included in my P60 for last tax year that it won't this year? Its just confusing as it shows in my YTD.

Then I really can't understand why your take home pay should be so low The 'PBA' element is taxable pay and if it's being advanced to you as an element of each payment it should show in your YTD totals. If you want me to have a look at a payslip for you to see if I can work out the reason for the low take home pay I'd be happy to - [email protected]

[CoolCat]

On the "should I resign or should I let them terminate" question I would definitely recommend not resigning. Aim for the latest end date possible. Mainly because you can then legitimately claim to be "employed" for the purposes of insurance forms and so on, and things like car insurance are way cheaper if you put down employed than if you were ever honest enough to say you were unemployed, as a contractor using an umbrella you are bound to be between contracts from time to time.