P87 or Self assessment

Notmyrealname

clannnabanna wrote: »

So why id they tell me i would get paid £10/day for sustenance (they were just lying)

Because you are. However it is applied as a tax allowance, not £10 cash in your hand. Just think about it - where would the money come from? The agency pay your wages to the umbrella company and everything you get is paid out of that - expenses, holiday pay, everything. The umbrella company don't get the expenses you claim from the agency. The sole aim of using an umbrella company from your point of view is to be allowed to use normal expense allowances to offset against your taxable income to reduce that figure and therefore reduce the amount of tax you pay on a given weeks income to increase your take home pay.

i knew i shouldnt have trusted them as it was a scam. They would have been safer saying we pay you 8p/mile & give you £4/day instead of the big £10/day & 45p/ mile nonsense!!

It is not a scam. You have on paper been given those amounts however as they are applied as a tax deductible expense the real amount you get is 20% of them assuming you've earned sufficient pay that the pay which attracts 20% tax covers the expenses being claimed.

So you are telling me that even though i have £1,910 waiting to be collected i cannot collect that amount in full?

Yes. You can only claim up to a maximum of 20% based on the years gross taxable pay.

Thanks for your help in this complicated ongoing matter.

No worries. If you're not used to doing your own books and tax it looks complicated.

Notmyrealname

HappyMJ wrote: »

Yes some chance alright....

You have to pay TWO national insurances. The employer national insurance and the employee national insurance.

You are working to earn paystream £10 per hour. Out of that you pay for their NI, your NI, their fees, your fees, your expenses and your minimum wages....and don't forget VAT as well.... As a registered VAT supplier Paystream have to charge your client VAT and forward that to HMRC.

They should also deduct 12.8% for holiday pay. You must make sure that you get that because that IS a pot of real money that you are owed the full amount of.

clannnabanna

Thanks for your replies fellas. So what do i need to do then? Get a P87 form & send them the information sheet that Paystream (umbrella company) sent me for between 14th March 2011 - 5th April 2011?

Cheers

PS Could somebody on here send me a link to a downloadable P87 form?

agrinnall

clannnabanna wrote: »

PS Could somebody on here send me a link to a downloadable P87 form?

No, because it's an incredibly simple thing to find for yourself (Google HMRC P87 first result).

clannnabanna

agrinnall wrote: »

No, because it's an incredibly simple thing to find for yourself (Google HMRC P87 first result).

lol Happy New Year to you to!

Christ the night :rotfl: