I am having an absolute nightmare and need some help! I've been contracting since August 2016 and at the time I was rushed into choosing an umbrella company to use, a friend of mine recommended me Payerise and I blindly just went with them as she told me she had used them years without issue.
However, a while ago I questioned my payslip with them, my year to date tax seemed very low and I was worried that this was a problem, my consultant responded with: In regards to your payslip slips, as your umbrella company we are able to lower your taxable pay, your tax is then deducted from this amount and would be correct based on the tax code of 1059L that we have on the system for you. We calculate your pay in a way that gives you the best possible take home and are legally responsible for making all of your deductions from your and submitting them to the HMRC.
She said "we are legally responsible" and so I just left it - I probably should have pushed it further but I am not originally from the UK and the tax system is confusing over here so I assumed I was probably just wrong.
So fast forward to now, I have just resgined from my current contract role and am about to start a new one, funnily enough at the exact same time Payerise give me a new representative as my old one left, and she doesn't seem to have been given any kind of handover. I have not been getting paid and there seems to be alot of confusion, so i decided to look into a new umbrella for my new role which I am doing - thanks to this forum.
HOWEVER... in the meantime, I checked out my payslip for the first weeks wages of this new tax year and something is definitely up.
I get paid £150 per day, so £750 per week Gross.
My take home is £607.50.
Payerise's fee is £25
and on my first payslip of this tax year it is saying that my taxable pay is £262.50 and that this week they have deducted £8.20 tax.
£8.20!?! this is nothing! And certainly not 20%?!!?
I have today requested a P60 or a proper breakdown of what's happening here from payerise but jusging by recent correspondence i fear i might not receive this and I am now unsure of the next step to get this sorted.. I assume i will need to contact HMRC at some point but I just want it clear in my head how I go about sorting this out as when I have contacted them before they have been most unhelpful!
Has anybody else has issues with tax and umbrella companies? and are you able to shed some light on how you got it sorted? I appreciate it <3
However, a while ago I questioned my payslip with them, my year to date tax seemed very low and I was worried that this was a problem, my consultant responded with: In regards to your payslip slips, as your umbrella company we are able to lower your taxable pay, your tax is then deducted from this amount and would be correct based on the tax code of 1059L that we have on the system for you. We calculate your pay in a way that gives you the best possible take home and are legally responsible for making all of your deductions from your and submitting them to the HMRC.
She said "we are legally responsible" and so I just left it - I probably should have pushed it further but I am not originally from the UK and the tax system is confusing over here so I assumed I was probably just wrong.
So fast forward to now, I have just resgined from my current contract role and am about to start a new one, funnily enough at the exact same time Payerise give me a new representative as my old one left, and she doesn't seem to have been given any kind of handover. I have not been getting paid and there seems to be alot of confusion, so i decided to look into a new umbrella for my new role which I am doing - thanks to this forum.
HOWEVER... in the meantime, I checked out my payslip for the first weeks wages of this new tax year and something is definitely up.
I get paid £150 per day, so £750 per week Gross.
My take home is £607.50.
Payerise's fee is £25
and on my first payslip of this tax year it is saying that my taxable pay is £262.50 and that this week they have deducted £8.20 tax.
£8.20!?! this is nothing! And certainly not 20%?!!?
I have today requested a P60 or a proper breakdown of what's happening here from payerise but jusging by recent correspondence i fear i might not receive this and I am now unsure of the next step to get this sorted.. I assume i will need to contact HMRC at some point but I just want it clear in my head how I go about sorting this out as when I have contacted them before they have been most unhelpful!
Has anybody else has issues with tax and umbrella companies? and are you able to shed some light on how you got it sorted? I appreciate it <3
I am definitely well and truly convinced that it's not a good company to be with. They never mentioned anything about shares to me but I just can't figure out wtf is happening! 
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