Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • harri2017
    • By harri2017 9th Mar 18, 10:42 AM
    • 2Posts
    • 0Thanks
    harri2017
    Umbrella agency claiming pay as internal expenses
    • #1
    • 9th Mar 18, 10:42 AM
    Umbrella agency claiming pay as internal expenses 9th Mar 18 at 10:42 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't 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
Page 1
    • Comms69
    • By Comms69 9th Mar 18, 10:44 AM
    • 2,970 Posts
    • 2,939 Thanks
    Comms69
    • #2
    • 9th Mar 18, 10:44 AM
    • #2
    • 9th Mar 18, 10:44 AM
    No idea, but if you were paid 6k, your p45 should show 6k
    • getmore4less
    • By getmore4less 9th Mar 18, 12:56 PM
    • 32,180 Posts
    • 19,332 Thanks
    getmore4less
    • #3
    • 9th Mar 18, 12:56 PM
    • #3
    • 9th Mar 18, 12:56 PM
    Your pay slips should detail the cash flow

    The idea is to get as much of the pay as possible down as expenses so they don't attract Tax and NI.

    chances are there is some creative stuff going on.

    post the details from a payslip it will probably
    • agrinnall
    • By agrinnall 9th Mar 18, 7:12 PM
    • 20,321 Posts
    • 16,078 Thanks
    agrinnall
    • #4
    • 9th Mar 18, 7:12 PM
    • #4
    • 9th Mar 18, 7:12 PM
    Duplicate thread on Cutting Tax - OP stick to one or the other otherwise the responses get confused. Hopefully a Board Guide will merge the threads.
    • isplumm
    • By isplumm 9th Mar 18, 7:15 PM
    • 1,844 Posts
    • 777 Thanks
    isplumm
    • #5
    • 9th Mar 18, 7:15 PM
    • #5
    • 9th Mar 18, 7:15 PM
    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't 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
    Originally posted by harri2017
    I would be vert careful here - you are responsible for any tax due - not the umbrella company, so if the tax man comes after you, the umbrella company will quickly disappear - what is the name of the umbrella company?

    Have you earnt more than the £5k than mentioned in this financial year?

    Mark
    We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,269Posts Today

8,416Users online

Martin's Twitter