New umbrella company - worried about tax avoidance 27 January at 12:30PM edited 27 January at 12:38PM in Employment, jobseeking & training 7 replies 173 views

Daisy_84

I’m with a new umbrella company and just noticed that my payslip doesn’t reflect what I’m being paid into the bank account. Tax avoidance red flags.

I want to nip it in the bud but with a sensible way not going there with guns blazing. 

I was wondering what recommendations people might have on how I can approach this?

summer_daze009

Here is something you may wish to look at. It gives examples of tax avoidance and how to report the umbrella company should you wish to do so

https://www.gov.uk/guidance/check-your-payslip-if-you-work-through-an-umbrella-company?utm_medium=email&utm_campaign=govuk-notifications&utm_source=541d05f2-8a3f-49cf-ad82-cd6641433696&utm_content=daily

Daisy_84

summer_daze009 said:

Here is something you may wish to look at. It gives examples of tax avoidance and how to report the umbrella company should you wish to do so

https://www.gov.uk/guidance/check-your-payslip-if-you-work-through-an-umbrella-company?utm_medium=email&utm_campaign=govuk-notifications&utm_source=541d05f2-8a3f-49cf-ad82-cd6641433696&utm_content=daily

Am I reading it right where it says I can report anonymously?

summer_daze009

Yes you can. You don’t have to give your name or contact details unless you wish to. Although I’m not sure if HMRC investigate all reports or not.

DullGreyGuy

Daisy_84 said:

I’m with a new umbrella company and just noticed that my payslip doesn’t reflect what I’m being paid into the bank account. Tax avoidance red flags.

I want to nip it in the bud but with a sensible way not going there with guns blazing. 

I was wondering what recommendations people might have on how I can approach this?

Are they an FSCA accredited umbrella?

Really need to give a lot more detail about the numbers on the payslip and whats gone into your account. Presumably they are overpaying -v- the payslip? Is this just one payment or months of them?

Before the changes in IR35 and FSCA accreditation became a requirement for most large companies pushing contractors/temps via umbrellas any umbrella offering to save you taxes would be plastering it all over their website not keeping silent about it and just overdepositing into your account.

Sounds more like either you dont understand the payslip or someone in payroll has messed up. 

Daisy_84

DullGreyGuy said:

Daisy_84 said:

I’m with a new umbrella company and just noticed that my payslip doesn’t reflect what I’m being paid into the bank account. Tax avoidance red flags.

I want to nip it in the bud but with a sensible way not going there with guns blazing. 

I was wondering what recommendations people might have on how I can approach this?

Are they an FSCA accredited umbrella?

Really need to give a lot more detail about the numbers on the payslip and whats gone into your account. Presumably they are overpaying -v- the payslip? Is this just one payment or months of them?

Before the changes in IR35 and FSCA accreditation became a requirement for most large companies pushing contractors/temps via umbrellas any umbrella offering to save you taxes would be plastering it all over their website not keeping silent about it and just overdepositing into your account.

Sounds more like either you dont understand the payslip or someone in payroll has messed up. 

They are accredited by Professional Passport.

Yes. They are overpaying me.

With my previous umbrella company, what was on my payslip reflected what I got in the account.

Grumpy_chap

Daisy_84 said:

I’m with a new umbrella company and just noticed that my payslip doesn’t reflect what I’m being paid into the bank account. Tax avoidance red flags.

I want to nip it in the bud but with a sensible way not going there with guns blazing. 

I was wondering what recommendations people might have on how I can approach this?

Is it possible that you have either mis-understood the payslip and the fields on the payslip and / or there has been a genuine error that will be corrected at next payslip?

"Report them to HMRC" seems like rather an over-reaction as the first action.

What I'd do first is to simply ask them.  Say that you have received the payslip and are unsure what all the data fields refer to, could they please explain?

There are many factors that can be confusing with UC payslips.  For example, have you claimed any expenses such as allow
able business mileage?  This might be shown separately on the payslip to the net salary, then the amount paid is the sum of both.

Failing that, could you share a redacted version of the payslip and which date field you expected to match the total pay to your account?  It may be that there are others here that can spot the difference.

Marcon

Daisy_84 said:

I’m with a new umbrella company and just noticed that my payslip doesn’t reflect what I’m being paid into the bank account. Tax avoidance red flags.

I want to nip it in the bud but with a sensible way not going there with guns blazing. 

I was wondering what recommendations people might have on how I can approach this?

See https://www.gov.uk/guidance/check-if-you-are-at-risk-of-tax-avoidance

This is your first payment from a your new UC, so once you've double-checked your facts, go back and ask them to explain the difference. Avoid accusations or anything else at this stage - if it's a simple error, the less accusatory you are the better, in the interests of future harmonius relations.