Massively wrong p60

Uberbeck

Hi, I am a agency worker that has to use an umbrella company as my payroll. I have been with a few different umbrella companies over the years but never had this problem, my P60 is wrong, as in it only declares a third of what I have actually earned. 

The thing is that I didn’t notice until now because they were taking around 33% off of me on my payslips which is what I have been used to with other umbrella companies. I checked online with HMRC and they haven’t received any tax or NI from the umbrella at all. I sent some emails and spoke to someone senior in payroll asking how and why this has happened. The reply was that is just how they process the money. I said not good enough, and then given him the figures of what they had taken from me asking who has the money now? They say HMRC.

This is wrong and I know it but I feel like I need some advice going forward as I can’t submit a tax return with this P60.

any advice appreciated.

unholyangel

Have you checked your personal tax account to see what information is held under the PAYE section? It may not have updated yet, but it might shed some light

Uberbeck

I didn’t explain myself very clear. The umbrella declared on the p60 that my total in come is very low and little bit of tax deducted.

However my total income is lot more than that and they deducted a large amount of tax from me already. 

I feel that they won’t pay HMRC a correct tax and Ni contributions and take that as their own profit. 

I will need to do a self assessment but I can’t submit something that I know it is wrong.

unholyangel

Uberbeck said:

I didn’t explain myself very clear. The umbrella declared on the p60 that my total in come is very low and little bit of tax deducted.

However my total income is lot more than that and they deducted a large amount of tax from me already. 

I feel that they won’t pay HMRC a correct tax and Ni contributions and take that as their own profit. 

I will need to do a self assessment but I can’t submit something that I know it is wrong.

You explained yourself fine. 

I'm asking you to check your paye section on your personal tax account because you might find more than one record for the same employer there. It can happen sometimes. 

Uberbeck

yes I have checked it and there payments from my employer however these do not reflect my payslip at all, with very little contributions to tax and NI.

01afraser4

Are you sure they haven't treated you as a self employed worker for part of the year which may explain why there is a discrepancy between the figures? Are you in the Construction Industry? It may be that some of the work you carry out falls under the Constructions Industry Scheme and you are considered a subcontractor.

If not and you are certain that all your income is subject to PAYE tax and what they have declared on your P60 and what they've reported to HMRC is incorrect, I would suggest completing your tax return based on your payslips and report the company for potential tax evasion.

Uberbeck

I work in the healthcare sector, I get work through an agency and the then umbrella company acts as my payroll and my employer. All my income is subject to PAYE as in all my previous umbrella companies. since 2018 anyone who works with the NHS as agency is not allowed to be declared as self employed.

Just discovered that the pay for last tax year is wrong as well, didn't notice at first as I had only worked a couple of months with them.

01afraser4

Uberbeck said:

I work in the healthcare sector, I get work through an agency and the then umbrella company acts as my payroll and my employer. All my income is subject to PAYE as in all my previous umbrella companies. since 2018 anyone who works with the NHS as agency is not allowed to be declared as self employed.

Just discovered that the pay for last tax year is wrong as well, didn't notice at first as I had only worked a couple of months with them.

Well I'd complete your return based on the payslips provided to you that indicates the Tax and NI deductions made from your pay. This may well flag up as a discrepancy but as long as you have the paperwork to prove it you'll be fine.

And as I mentioned, it may be worth reporting the company for potential tax evasion if you have those concerns.

Speedbird676

Just to confirm, do the amounts on your payslips (monthly/weekly) total the amounts shown on your P60?

Uberbeck

The PAYE and NI taken are only a small portion of pay deducted. They seem to process all my hours on minimum wage then take tax and NI from that (which is virtually nothing) and then take a further payment for ‘company tax’ and ‘company NI’ (which is considerably more) which means I lose a third of overall pay. 

The P60 only adds up for the non company bit.

oldbikebloke

Uberbeck said:

The PAYE and NI taken are only a small portion of pay deducted. They seem to process all my hours on minimum wage then take tax and NI from that (which is virtually nothing) and then take a further payment for ‘company tax’ and ‘company NI’ (which is considerably more) which means I lose a third of overall pay. 

The P60 only adds up for the non company bit.

as I suspected, you don't really understand what an umbrella company does.
The umbrella is your employer and has to pay employer "tax", typically that means it pays it out of the money "you" earn, since the only source of income for the company is your "earnings" . 

There is no such thing as "company tax" - there will be an admin charge

There most certainly is such a thing as company NI, and, as above, "you" are the one who pays it, not the people who run the umbrella company for you. However, as that is an employer, not employee cost, it never shows on your P60