Under taxed by my umbrella, now I have a huge tax bill

[eek]

Legitimate, well known umbrella co, with good recommendations from senior people I trust. They are accredited members of the FCSA.

Sorry, but that really doesn't compute - there is no way £1 let alone £27,500 would go through a legitimate umbrella company's books without PAYE being correctly deducted. The umbrella company is liable for the Employers NI side of things so any screw up is their profit gone.

As I said before name them as without that I'm starting to think this is either fiction or you are missing out something very, very important.

[BobbyCrane]

Sorry, but that really doesn't compute - there is no way £1 let alone £27,500 would go through a legitimate umbrella company's books without PAYE being correctly deducted. The umbrella company is liable for the Employers NI side of things so any screw up is their profit gone.

As I said before name them as without that I'm starting to think this is either fiction or you are missing out something very, very important.

OK, Contractor Umbrella Ltd. And to Major Hassle’s point about not realising, I am having employee and employer NI deducted, as well as PAYE, apprentice levy, employee and employer pension deductions, so not immediately obvious that tax was so low. What detail do you think I’m missing out here?

[cojak]

OK, Contractor Umbrella Ltd. And to Major Hassle’s point about not realising, I am having employee and employer NI deducted, as well as PAYE, apprentice levy, employee and employer pension deductions, so not immediately obvious that tax was so low. What detail do you think I’m missing out here?

Thank you BobbyCrane, is this a major mistake by Contractor Umbrella and I expect their customer service to help (seriously - what on Earth were they doing to allow you to get into this predicament??).

We await Contractor Umbrella’s response with some interest...

[eek]

Thank you BobbyCrane, is this a major mistake by Contractor Umbrella and I expect their customer service to help (seriously - what on Earth were they doing to allow you to get into this predicament??)[/B]

We await Contractor Umbrella’s response with some interest...

Yep - let's wait for Simon's / Dolan's response.

[BobbyCrane]

Thank you BobbyCrane, is this a major mistake by Contractor Umbrella and I expect their customer service to help (seriously - what on Earth were they doing to allow you to get into this predicament??) If you have paid out all of the necessary deductions, where has the HMRC money gone??

We await Contractor Umbrella’s response with some interest...

They used the wrong tax code and so taxed at 20% not reflecting the total income level. I’ve been undertaxed, there’s no suggestion that they’ve run off with any money I’ve paid. My point has been that they are the professional provider of payroll services, I pay for that service and they messed up. I have been in constant exchange with the payroll manager and more recently the group director responsible for complaint handling. Both are hiding behind their belief that HMRC are responsible, not them, for correct tax codes in use.

[SimonMac]

They used the wrong tax code and so taxed at 20% not reflecting the total income level. I’ve been undertaxed, there’s no suggestion that they’ve run off with any money I’ve paid. My point has been that they are the professional provider of payroll services, I pay for that service and they messed up. I have been in constant exchange with the payroll manager and more recently the group director responsible for complaint handling. Both are hiding behind their belief that HMRC are responsible, not them, for correct tax codes in use.

This is a lesson that some have found at their expense, you are paying for advice and convenience, not transfer of liability if it is wrong.

[BobbyCrane]

Yep - let's wait for Simon's / Dolan's response.

Well they’ve refused to pass my complaint to him up to now, so I’m keen too to find out.

[SimonMac]

Thank you BobbyCrane, is this a major mistake by Contractor Umbrella and I expect their customer service to help (seriously - what on Earth were they doing to allow you to get into this predicament??). If you have paid out all of the necessary deductions, where has the HMRC money gone??

We await Contractor Umbrella’s response with some interest...

My guess is the OP has received it in good faith seeing tax deducted and has spent it

[BobbyCrane]

This is a lesson that some have found at their expense, you are paying for advice and convenience, not transfer of liability if it is wrong.

I get that, but my contract with them is based on the expectation that they will fulfil their obligation to “make all appropriate deductions” as set out on their website. They haven’t and therefore I believe it is a breach of contract.

[BobbyCrane]

My guess is the OP has received it in good faith seeing tax deducted and has spent it

Yep, exactly that.