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Agency work/Holiday pay
debsue
Posts: 467 Forumite
I think this may be lengthy but bear with me please..
June 2010, my chap started work driving for an employment Agency (EA). He worked until September then started college on a full time course. I was vaguely aware that he may have accrued some holiday pay, but didnt think much about it, as when I worked on the NHS bank, any accrued holiday pay was sent to me at the end of the financial year.
Anyway, he went to college, did really well and the course ended in june this year. He will start University, but not until January next year, so after college, back he goes to the EA and is taken on again. I went with him and asked about the holiday pay from the previous year, but was told that "their financial year runs from sept to sept, therefore as he didnt ask for the holidays, he had lost them". Never mind, we thought, wont do that again.
He started work and a couple of months into it, I realised that as he hadnt earned that much the previous year (being at college) he may be due a tax rebate. He rang the tax man and was told to get a statement of earnings from the EA, which he did. The statement arrived saying that he had only paid £28 in tax the previous year although there was a decrepancy of around £600 between his gross earnings and his net earnings. He rang the EA (who incidently, dont deal with his wages, this is a different company) and was told they would look into this.
Anyway, to cut a long story short!!, what they do is only use part of his wage to declare tax, the rest is "expenses", so he doesnt pay tax on this. What they then do is put some of this aside for holiday pay, they call it "Umberella scheme".
He took a weeks holiday at the end of August. Last week the job finished, today he was told he isnt due any holiday pay as they had changed the financial year to October.
My questions is (are). If they took money from him last year, and he has lost his holiday entitlement as he didnt ask for it, are they allowed to just Keep the money set aside from him, and again this year? If they just keep it, is it unlawful deduction? The EA say it is the "payroll" conpany he should talk to and the Payroll say it is the Ea he should talk to, no one seems to be able to tell him what has happened to this money.
My argument is that if he had paid tax properly he would be able to claim it back as he hasnt earned anough to pay tax for the previous tax year.
Hope this makes sense to someone, feel free to ask further questions, and thanks in advance.
Deb
June 2010, my chap started work driving for an employment Agency (EA). He worked until September then started college on a full time course. I was vaguely aware that he may have accrued some holiday pay, but didnt think much about it, as when I worked on the NHS bank, any accrued holiday pay was sent to me at the end of the financial year.
Anyway, he went to college, did really well and the course ended in june this year. He will start University, but not until January next year, so after college, back he goes to the EA and is taken on again. I went with him and asked about the holiday pay from the previous year, but was told that "their financial year runs from sept to sept, therefore as he didnt ask for the holidays, he had lost them". Never mind, we thought, wont do that again.
He started work and a couple of months into it, I realised that as he hadnt earned that much the previous year (being at college) he may be due a tax rebate. He rang the tax man and was told to get a statement of earnings from the EA, which he did. The statement arrived saying that he had only paid £28 in tax the previous year although there was a decrepancy of around £600 between his gross earnings and his net earnings. He rang the EA (who incidently, dont deal with his wages, this is a different company) and was told they would look into this.
Anyway, to cut a long story short!!, what they do is only use part of his wage to declare tax, the rest is "expenses", so he doesnt pay tax on this. What they then do is put some of this aside for holiday pay, they call it "Umberella scheme".
He took a weeks holiday at the end of August. Last week the job finished, today he was told he isnt due any holiday pay as they had changed the financial year to October.
My questions is (are). If they took money from him last year, and he has lost his holiday entitlement as he didnt ask for it, are they allowed to just Keep the money set aside from him, and again this year? If they just keep it, is it unlawful deduction? The EA say it is the "payroll" conpany he should talk to and the Payroll say it is the Ea he should talk to, no one seems to be able to tell him what has happened to this money.
My argument is that if he had paid tax properly he would be able to claim it back as he hasnt earned anough to pay tax for the previous tax year.
Hope this makes sense to someone, feel free to ask further questions, and thanks in advance.
Deb
0
Comments
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Bump, anyone??0
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Did he get a P45 when he left after the first stint of working for the EA?
If he did, what did it have regarding earnings and tax paid?
If they didn't issue one, there should have been a P60 (probably in May 2011).
If there was a P60, what did that have as the figures for the 2010-11 tax year?0 -
Sounds well dodgy!! There is some truth in the tax free expenses thing for lorry drivers, buts it's not my area so won't comment on that without full facts. When I worked for an agency we calculated holiday pay on a 12 Month period from date of commencement and the computer system worked out a 12 week average each time they requested holiday. Can you not employ this lad on a casual basis yourself rather than using this dodgy agency?0
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LittleVoice wrote: »Did he get a P45 when he left after the first stint of working for the EA?
If he did, what did it have regarding earnings and tax paid?
If they didn't issue one, there should have been a P60 (probably in May 2011).
If there was a P60, what did that have as the figures for the 2010-11 tax year?
Hi no p45 or p60. he has the statement of earnings which says £28 tax and some NI0 -
Deleted_User wrote: »Can you not employ this lad on a casual basis yourself rather than using this dodgy agency?
Hes my partner and currently "employed" as my house huband, til more work comes along LOL0 -
Hes my partner and currently "employed" as my house huband, til more work comes along LOL
Ha ha ha! I totally misinterpreted "my chap" lol! Sorry :-)
I'm not at work so can't post any links but I would suggest googling holiday pay and writing a letter to the Agency. If it was not clearly pointed out in the contract when the holiday year begins and ends then I think he should kick up a stink! Unfortunately i've seen it first hand when working in the Recruitment Industry, there are Agencies that look after the staff and do the right thing and unfortunately there are Agencies that go to all lengths to get out of paying holiday pay :-(0 -
it is more annoying that the "holiday pay" has been deducted out of his wage and then they wont give it to him. I feel its a bit like saving with the bank and them saying you cant have it because you didnt ask!0
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Hi no p45 or p60. he has the statement of earnings which says £28 tax and some NI
He should have received a P60 because he had not left the agency then. Ask for it. They can issue a duplicate. Then you will be able to check that against his last payslip in the 2010-11 tax year and know what has ben sent to HMRC.0 -
I've never heard of a company financial year ending in September or October (usually it is the regular April tax year, or else January- January) and I've never worked at a place that shifted their fnancial year about- this seems very dodgy to me, unless this is common and I just haven't come across it before. The lack of P45 or P60 is also very suspicious.0
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