Monthly / 4-Weekly Pay

[CatBlack]

I'm currently having a dispute with my umbrella as they are insisting on calculating my deductions based on a 4-weekly payment frequency (i.e. using the four-weekly national insurance thresholds) despite the fact that they pay me monthly.

I have challenged the legitimacy of this, but they are adamant that "This is in line with standard industry practice for Umbrella Solutions as we are providing a payroll Solution and not permanent employment... and we have no concerns about [its] legitimacy".

I find it hard to believe that any employer or payroll provider is allowed to unilaterally vary the basis by which deductions are calculated in this way. Surely the payment frequency is the frequency of payments? It doesn't really seem like a grey area to me.

So my question is, is this "standard industry practice", or is it something which some umbrellas do, or is it completely unheard of and these guys don't know what they're doing?

[WTFH]

What is your issue?

Are they not paying you at all, or is it just that it’s not the way you’d like to be paid?
Are they taking more off you than they should?
Are you paying more tax/NI than you should?

[CatBlack]

My issue is that my statutory deductions are being calculated incorrectly, so I'm not paying the right amount of national insurance, and consequently my take-home pay is wrong.

[WTFH]

Who is your umbrella?

[WTFH]

Ah, I see from the other thread that it’s Brookson.

https://forums.contractoruk.com/umbr...-brookson.html

Shall I close this thread rather than having the same discussion in two different places?

[eek]

When you said you had been paid against a weekly allowances versus a monthly one I could see a valid argument.

Now you tell us it's 4 weekly versus monthly I'm at a loss as to why you are arguing the toss over £12.77 when you probably earn £10,000 or so a month (especially when you seem to be doing better from it)

Employee NI on £10,000 is £583.54 on weekly, £605.04 on monthly (save £21.50)
Employer NI is £1399.65 on weekly, £1390.92 on monthly (extra £8.73)

I've had to doublecheck 3 times but it seems you are complaining that you are paying too little NI

You would save more moving to an umbrella that doesn't charge £30+ a week or £125 a month margins that Brookson do.....

But in reality get a life - if you don't like it move to another umbrella and if you can't do that quit the contract and move elsewhere...

[CatBlack]

No, it's not the same discussion. The other thread is about Brookson. This one is to ask people whether in their experience it's standard industry practice to calculate deductions based on a different payment frequency to the one actually being used.

[eek]

No, it's not the same discussion. The other thread is about Brookson. This one is to ask people whether in their experience it's standard industry practice to calculate deductions based on a different payment frequency to the one actually being used.

It isn't

But then again it's quite possible that the agency works on 4 weekly rather than monthly invoicing or pays 1 month early that would otherwise breaks things in a worse way...

Edit - it may also be based on a previous HMRC "advice" ...

[CatBlack]

It isn't

Thanks for the straight answer. That's what I was looking for.

But then again it's quite possible that the agency works on 4 weekly rather than monthly invoicing or pays 1 month early that would otherwise breaks things in a worse way...

The agency pay the umbrella monthly.

[NotAllThere]

Abusive post deleted. And the one that quoted it.

Although I appreciate this comment.

He is a mod debating whether to allow you to stay on this forum.

If he decided to kick you out I don't think anyone else on here would care.