30% paye???

Teterow

Hi,

I wondered if someone has a little bit of advise.
My other half has been temping for a few weeks now.
The set-up is as follows:
He has been placed through a recruitment agent. But it seems that he is not paid through the agent, but a company called LiquidFriday.
He says that he is paying around 30% of PAYE, which can't be right as he has been out of work for a while.

He is on an hourly rate, and should be reimbursed for his travel expenses. He was also told that he would get a daily food allowance. Travel expenses and food allowance has so far not been paid. He's been working there for 3 weeks now.

Surely, He must be able to claim back the tax. Can anyone please advise what to do?

Kind regards,

meluvnext

this is an umbrella company! i presume you would have to claim your expenses on a weekly basis online?

HappyMJ

The tax year has just started so yes he'll be paying tax and NI on anything in excess of the personal allowance.

burnoutbabe

is it because you have employers NI to pay as well as employees NI?

so 30% of gross pay may be about right, taking into account your 0% band as well.

I found this out today. they SAY the rate is £20 per hour. But thats what you get if you were a limited company. if you are paid via PAYE by the agency/an umbrella, they take off employers NI as well as your normal taxes.

Which is sneaky if you are not expecting it.

Russe11

Sounds like he is on CIS 30% deduction.

SteProud

Teterow wrote: »

Hi,

I wondered if someone has a little bit of advise.
My other half has been temping for a few weeks now.
The set-up is as follows:
He has been placed through a recruitment agent. But it seems that he is not paid through the agent, but a company called LiquidFriday.
He says that he is paying around 30% of PAYE, which can't be right as he has been out of work for a while.

He is on an hourly rate, and should be reimbursed for his travel expenses. He was also told that he would get a daily food allowance. Travel expenses and food allowance has so far not been paid. He's been working there for 3 weeks now.

Surely, He must be able to claim back the tax. Can anyone please advise what to do?

Kind regards,

I work for an umbrella company so i am not impartial but there are some umbrella companies that encourage really bad practice.

As he is working via an umbrella, your other half is legally an employee of that umbrella and should have a full contract of employment in place to make sure he is getting his statutory employment rights. All of the umbrella's costs should be put to you upfront as well.

The legitimate expenses he incurs, such as food and travel, can be used to offset against his tax liability. He should be paying full PAYE to be compliant with HMRC but if he earns say £1,000 and has £200 in expenses, then in a nutshell, he should be getting taxed on £800.

He should only claim for expenses he has incurred and ALWAYS ALWAYS keep the reciepts, depsite whatever an umbrella tells you.

Some dody umbrellas will tell you that you can claim a certain amount everyday without needing reciepts as they have a HMRC dispensation. This is not true. The dispensation is an admin arrangement between the umbrella and HMRC and has nothing to do with the temp workers take home pay.

I've pasted an independent guide to umbrella companies and the questions you should ask them below.

http://www.contracteye.co.uk/umbrella-company.shtml

hope that helps.

Teterow

Thank you very much. It is all still a bit confusing, but I'll share the info with my other half and let him take the appropriate course of action.

Thank you.
S

Andy0963

my daughter, worked for as agency got paid £90 a day plus all her expences, for food and travel, for 3 weeks she was there and her total income was £1530.00 with expences of £685.41 and all she got paid from the umbrella company Eden was a total, of £1,105.39 and she paid twice as much NI as i do on my monthly wage and she didnt earn as much as me, they say she is classed as self employed and a employee but i thought self employed ni (stamp) was about 3 quid... they in my eyes just a bunch of robbing bar stools

neil277

Teterow wrote: »

Hi,

I wondered if someone has a little bit of advise.
My other half has been temping for a few weeks now.
The set-up is as follows:
He has been placed through a recruitment agent. But it seems that he is not paid through the agent, but a company called LiquidFriday.
He says that he is paying around 30% of PAYE, which can't be right as he has been out of work for a while.

He is on an hourly rate, and should be reimbursed for his travel expenses. He was also told that he would get a daily food allowance. Travel expenses and food allowance has so far not been paid. He's been working there for 3 weeks now.

Surely, He must be able to claim back the tax. Can anyone please advise what to do?

Kind regards,

Hi
It sounds he is on emergency tax you have to ask the company for a form which will exempt him from e/m tax.

floss2

neil277 wrote: »

Hi
It sounds he is on emergency tax you have to ask the company for a form which will exempt him from e/m tax.

Not if he is working through an umbrella company.

OP, has your partner submitted any invoices to Liquid Friday for his travel expenses & food allowance? This may explain why he has not yet been paid them. My DH worked through Parasol a few years ago, very professional experience as far as he was concerned, they paid him monthly but he had to submit his invoice for payment, they then charged the company he was working for on his "company's" behalf.