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    • harri2017
    • By harri2017 9th Mar 18, 10:15 AM
    • 2Posts
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    harri2017
    Umbrella agency claiming pay as internal expenses
    • #1
    • 9th Mar 18, 10:15 AM
    Umbrella agency claiming pay as internal expenses 9th Mar 18 at 10:15 AM
    From the 27th of November 2017 until the 8th of February I was an agency worker using an umbrella company to receive my pay. I received this weekly. In total I received 5,531.03 and believe I paid around 180 in tax. On my P45 it states that I only earned 1669.08 and paid 172.40 in tax. When I asked the umbrella company, they said that I was on the agencies internal expenses, and that's why the whole amount isn'tt listed on my P45. Can someone please explain what this means for me, and tell me if that is legit?
    Thank you!

    Update: I asked the HMRC web chat, and they said "I cannot see anything that saying you had 'agencies internal expenses' and I do not have anything in my guidance about it. I would advice to contact your previous employer about what exactly these expenses are." Before I go back and ask the agency I need to understand exactly whats happened
    Last edited by harri2017; 09-03-2018 at 10:42 AM. Reason: Update
Page 1
    • agrinnall
    • By agrinnall 9th Mar 18, 6:59 PM
    • 20,134 Posts
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    agrinnall
    • #2
    • 9th Mar 18, 6:59 PM
    • #2
    • 9th Mar 18, 6:59 PM
    It appears that either the agency or the umbrella company (they should be two different entities even if they are both run by the same people, so you need to be clear which is which) has decided that a large proportion of what you earned from the client can be paid to you as expenses so no tax or NI is paid. While that generally is a benefit of using an umbrella company it seems a disproportionately large amount in this case. You need to find out exactly what expenses they feel are legitimate.
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