Umbrella Company Frauding My Daughter?

Dazed_and_confused

The umbrella cannot get HMRC to split the tax codes across JOB. . That needs to be done by your daughter.

And doing this would only work now if she is going to be paid again by the umbrella company.

silvercar

She was attracted by the hourly rate (£10.75)

She's got that rate (or will have when she gets the tax refund) less £11.48.

Only you or her can decide if that is worth fighting for.

Spiketrain

Amazed to see how much effort you went to to answer all my points. I'm so grateful there are people like you out there! Sorry I'm so un-concise!

I got the umbrella company manager on the phone. I was about to kick off about abusing young defenceless students when he was able to set me right on all the things you already accurately dealt with in your reply. What was interesting, and what really caused all this was the way the AGENCY had dealt with it all rather than the umbrella firm.

Basically, I wasn't really right to get so upset generally but it was understandable simply because of the way the deal had been communicated. The agency were supposed to have told my daughter all the aspects of the situation in advance and simply failed to do so.

They never should have advertised the pay rate at £10.75 - and it was misleading since this is the full 'arrangement fee figure' including, as we see, the margin costs etc. And was really not relevant to my daughter. By the way, the apprenticeship levy is an HMRC tax that also has to be paid by corporations using PAYE apparently (IE most companies), and since the umbrella firm isn't about covering people's costs, they have to bill this on in the same was as they charge on employers NI when appropriate.

The umbrella manager called the agency and instructed them to be clearer with their staff then called me back to say he'd done so. I had also made some points regarding the umbrella co's website, their FAQ page they have and the wording in their contracts, and he agreed that some things were not clear. My daughter's first language is English and still it was hard, I felt especially aware that there would be those on the books who don't have this luxury and would really wrestle with some of the way things had been laid out.

So a few things around this lesson for me.... but chiefly, the key point really was the incorrect offer from the agency and how they handled the information pertaining to the umbrella co's working practice. It also wasn't good that she did the whole deal with the brolly co AFTER she'd completed the day's work because their admin had been too slow to sign her up prior.

When the umbrella co manager found out about this, he refunded her the £11!

Good times! - Off to spend our money on some wild living to celebrate!

Spiketrain

We did thank you!

True I was a bit 'overly' on it - but I also knew that my daughter was about to sign up with a bunch more agents and I just needed to understand the workings of this system so I could be sure she wasn't being stiffed.

The folk here on MoneySavingExpert Forum have been so good! - So thanks!

My daughter got £11 back too! Good times.

System

Your daughter needs to be dealing with people and sorting things out, not you. By you doing it she doesn't learn how to deal with people and solve problems and will end up like my son's girlfriend when she left home, completely incapable of doing anything adult because her parents did it all. By all means give her advice, point her in the right direction, even write a script but it should be her doing all the legwork.

Spiketrain

Well...... I take your point, and my daughter is old enough to do this herself.... but there are a few factors on this gig that made me step in. She's on her own with the next one! Trust me, she's not mollycoddled!