React administration - umbrella company

[ACDC]

Hi all,

I have just recently discovered the forum and I am trying to find out if my registration and payment processing with React Administration Ltd is legit.
This is my first contract with an umbrella company, and they were recommended by my agency.
They paid me for the previous week by paying in one amount to the bank account. I then received an email with:
- one payslip, the net pay doesn't reflect what was paid onto the bank account (NIN and taxed)
- propelled payment notice

Now the amount on the payslip and propelled notice together reflect the amount paid, but most likely this was not taxed properly.
How do I know this is legal and that they are paying correctly? As they stated on the payslip weekly pay only and it's not what I had agreed with the agency anyway.

I am thinking of a speedy change of the umbrella company and seeking a new one.

Many thanks for your input

[Paralytic]

If you share the figures on the payslip, people here will be able to tell you if this is a dodgy umbrella. Do you know what they mean by a "propelled payment notice"? Ideally provide your tax code too.

[eek]

Never heard of that umbrella.

you can get your payslip checked for free at https://contractorvoice.org/submit/ but if the amount you receive doesn’t match the end figure on your payslip it’s clear something dodgy is going on.

By the sounds of it you’ve entered into a dodgy loan scheme - which means you may end up owing react administration whatever they have ”loaned” you and hmrc tax on the money “loaned” to you.

[ACDC]

Never heard of that umbrella.

you can get your payslip checked for free at https://contractorvoice.org/submit/ but if the amount you receive doesn’t match the end figure on your payslip it’s clear something dodgy is going on.

By the sounds of it you’ve entered into a dodgy loan scheme - which means you may end up owing react administration whatever they have ”loaned” you and HMRC tax on the money “loaned” to you.

My tax code 1257L w1m1
So I got paid £750.75
Payslip says weekly pay of £350, after NIN and tax, £315.44
Propelled payment notice £435.31

I asked them today if this is in accordance with HRMC, and was told this is all legit, also if I get the HRMC notice that I might be in an illegal scheme, to notify them, as the HRMC tends to do phishing with this. This was now a red flag for me.
So how do I get out of this contract?

[Helpinghand]

This sounds like a loan scheme see this article from HMRC on it Warning for agency workers and contractors employed by umbrella companies (Spotlight 60) - GOV.UK (www.gov.uk)

[northernladuk]

My tax code 1257L w1m1
So I got paid £750.75
Payslip says weekly pay of £350, after NIN and tax, £315.44
Propelled payment notice £435.31

I asked them today if this is in accordance with HRMC, and was told this is all legit, also if I get the HRMC notice that I might be in an illegal scheme, to notify them, as the HRMC tends to do phishing with this. This was now a red flag for me.
So how do I get out of this contract?

That's what they all say, until it's not. What else are they going to say? The truth? Can't rely on that so have to do your own digging.

Quick guide here but other guides available.
https://www.contractorcalculator.co....6110_news.aspx

Have a look through this list. React isn't there but check the notes on the schemes as they sound suspiciously like your set up.. But I could be totally wrong so please check yourself
https://www.gov.uk/government/public...-and-suppliers

For example

T2 Outsourcing Limited

• the remaining balance described as an advance drawdown’ which is notified by an ‘advance advice note’ to the user - this secondary element is made without being subjected to deductions of tax and National Insurance contributions

Advance draw down = propelled payment notice?? Need to start digging IMO. Start with the terms of your contract.

[Paralytic]

I asked them today if this is in accordance with HRMC, and was told this is all legit, also if I get the HRMC notice that I might be in an illegal scheme, to notify them, as the HRMC tends to do phishing with this. This was now a red flag for me.

That would be a definite red flag for me - why would they even say that unless they wanted advance notice.... have you checked where they are incorporated?

So how do I get out of this contract?

Speak to agency about other umbrellas you can use (assuming they'll only work with one on their PSL), post the list here and you'll get thoughts, and then resign from the existing one.

[ACDC]

I emailed the suggested Payslip check (Payslip Upload - Contractor Voice) and HRMC for advice.
I have a very basic contract, re the Payment clause, the following is written:
- You will be paid on an hourly basis at the agreed rate. This will be paid directly into your designated bank account.
- You are in agreement that the Company can make deductions from your wages in cases where an overpayment has occurred, or funds have been incorrectly transferred. You agree that this can be done at source before payment is made to yourself.
- We are entitled to recover from Your salary any money that You may owe to us at any time.

I'll be looking further and await for any further advice

[eek]

So how do I get out of this contract?

By finding another contract or insisting that the agency pay you directly.

the reality is that on £150 or so a day you really should be being paid directly by the agency or at the very least the agency should be using a professional employment organisation to employ and pay you.

[eek]

That would be a definite red flag for me - why would they even say that unless they wanted advance notice.... have you checked where they are incorporated?



Speak to agency about other umbrellas you can use (assuming they'll only work with one on their PSL), post the list here and you'll get thoughts, and then resign from the existing one.

I doubt there is a choice of umbrellas this screams scam to me.

if you can leave the umbrella and want a reasonable cost honest one https://www.fairpayservices.co.uk are good and cheap. Note not our usual choice but at £750 a week you want costs to be as low as possible.