Umbrella agency claiming pay as internal expenses
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harri2017
Posts: 2 Newbie
From the 27th of November 2017 until the 8th of February I was an agency worker using an umbrella company to receive my pay. I received this weekly. In total I received ££5,531.03 and believe I paid around £180 in tax. On my P45 it states that I only earned 1669.08 and paid 172.40 in tax. When I asked the umbrella company, they said that I was on the agencies internal expenses, and that's why the whole amount isn't listed on my P45. Can someone please explain what this means for me, and tell me if that is legit?
Thank you!
Update: I asked the HMRC web chat, and they said "I cannot see anything that saying you had 'agencies internal expenses' and I do not have anything in my guidance about it. I would advice to contact your previous employer about what exactly these expenses are." Before I go back and ask the agency I need to understand exactly whats happened
Thank you!
Update: I asked the HMRC web chat, and they said "I cannot see anything that saying you had 'agencies internal expenses' and I do not have anything in my guidance about it. I would advice to contact your previous employer about what exactly these expenses are." Before I go back and ask the agency I need to understand exactly whats happened
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Comments
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No idea, but if you were paid 6k, your p45 should show 6k0
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Your pay slips should detail the cash flow
The idea is to get as much of the pay as possible down as expenses so they don't attract Tax and NI.
chances are there is some creative stuff going on.
post the details from a payslip it will probably0 -
Duplicate thread on Cutting Tax - OP stick to one or the other otherwise the responses get confused. Hopefully a Board Guide will merge the threads.0
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I would be vert careful here - you are responsible for any tax due - not the umbrella company, so if the tax man comes after you, the umbrella company will quickly disappear - what is the name of the umbrella company?From the 27th of November 2017 until the 8th of February I was an agency worker using an umbrella company to receive my pay. I received this weekly. In total I received ££5,531.03 and believe I paid around £180 in tax. On my P45 it states that I only earned 1669.08 and paid 172.40 in tax. When I asked the umbrella company, they said that I was on the agencies internal expenses, and that's why the whole amount isn't listed on my P45. Can someone please explain what this means for me, and tell me if that is legit?
Thank you!
Update: I asked the HMRC web chat, and they said "I cannot see anything that saying you had 'agencies internal expenses' and I do not have anything in my guidance about it. I would advice to contact your previous employer about what exactly these expenses are." Before I go back and ask the agency I need to understand exactly whats happened
Have you earnt more than the £5k than mentioned in this financial year?
MarkWe’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com0
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