Umbrella Company not paying tax

keyser666

getmore4less wrote: »

The umbrella I used got the calculations wrong so you have to check very carefully

To work back from your pay.

If these total your earnings to the company are the same as
gross pay
Employer NI
Expenses
Umbrella cut.
Then they are rolling up holiday
If not then probably accumulating but then there is a chance they may get it wrong

another way is to look at the gross and holiday pay

If on the pay slip the holiday pay is 12.07% of the Gross then it is probably accumulated
If the holiday pay is 10.77% of the gross then it is probably rolled up.

they are not allowed to roll it up anymore

getmore4less

keyser666 wrote: »

they are not allowed to roll it up anymore

In practice it makes little difference and no one polices ho companied do it.

It must be identified separately on a pay statement where it is paid in a period it is earned then that is enough.

The only thing a company needs to do to cover itself is make sure you don't work more than 46.4 weeks if they really want to be sure you are taking enough statutory holiday.

Given the only person that is going to take action is the Employee that is very unlikely when it is their money and they just get it later(when they take the holiday).

getmore4less

AbbieCadabra wrote: »

exactly the same way as we do for our staff, it's a Company expense/overhead.

i think i understand what you're trying to say,

The way the umbrella operate is they generate income by employing people that negotiate their own jobs.

In most cases they take a fixed admin cut from the revenue generated to cover the cost of administration of the payroll etc,

The employer NI is a variable depends on how much you bring in and how much you can expense so they factor that into the T&C of the pay structure.

If they were to do it another way it would just mean the charges to run the company would go up from the fixed fee and be called something different.
revenue generation admin fee, 13.8% of everything over£153pw or something like that.

Much easier to say you pay the employer NI from your revenue, then if it changes no need to change the contract.

Remember the main revenue an umbrella company has is from the money the people that engage them to "employ" them generate through working.

There is no magic pot of cash to pay the employer NI.


The real issue is companies that are not paying the extra for employing off books through agency, LTD, umbrella.