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Tax?

Discussion in 'Supply teaching' started by imaginepigs, Oct 3, 2018.

  1. imaginepigs

    imaginepigs New commenter

    Hi,
    I got paid today; they've deducted my income tax as I am on the basic rate due to being signed up to more than one agency.
    I'm only going to be on supply until March so I know I'm not going to make 11,800, and I'm going to have to claim it all back in April.
    This is quite frustrating, especially as 20% of my earnings is a full day of work. Does anyone have any advice for what to do in this situation? Is there any alternative or do I just wait until April?
     
    pepper5 likes this.
  2. pepper5

    pepper5 Star commenter

    Call HMRC as they are extremely helpful, but I don't think there is away around this and you will have to apply for anrefund in April. Thinkmof it as a savings account. I know it is frustrating though when you need the money now.

    Welcome to the forum
     
  3. peakster

    peakster Star commenter

    You have to pay it and then claim it back.

    It's not actually very difficult to do this
     
    agathamorse, imaginepigs and pepper5 like this.
  4. imaginepigs

    imaginepigs New commenter

    I had a feeling that might be the case, thank you both anyway! I'm glad to hear it's not too hard. (although in some countries they automatically refund when you overpay tax, so it's a nuisance you have to actually claim it)
     
    pepper5 likes this.
  5. schoolsout4summer

    schoolsout4summer Star commenter

    Look on it as a compulsory savings account that will pay out in the summer.
     
  6. keyportfolio

    keyportfolio New commenter

    If you're currently being paid directly by your agencies, an alternative is to join an umbrella company. The umbrella would be able to pay you for work through multiple agencies under one tax code.
     
  7. nearmiss

    nearmiss Lead commenter

    Oh really? Please don't use this page for free advertising.
     
  8. edmundstavros

    edmundstavros New commenter

    Do you definitely have to apply for the refund in April? I've overpaid tax before and have been automatically given a refund by HMRC in April, without having to contact them or submit anything. Is it different if you have more than one taxcode, i.e. work for more than one agency?
     
    pepper5 likes this.
  9. pepper5

    pepper5 Star commenter

    Call HMRC who will advise you. It could be because of the different tax codes, but I am not sure.

    HMRC are usually very helpful.
     
  10. 50sman

    50sman Lead commenter

    DO NOT under any circumstances join an umbrella company!!!

    HMRC normally refund the tax automatically around mid- June.
    If not give them a ring - they honestly don’t want people to pay too much or too little tax - just the right amount.

    Make sure you are paying National Insurance contributions however as these do affect your state pension.
     
  11. LunaBlue123

    LunaBlue123 New commenter

    No prizes for guessing that Key Portfolio (UC) is the "education related company" listed in your profile, @keyportfolio. I think that it's just common courtesy for you to preface your posts, promoting UCs, with a disclaimer that you work for/represent one.

    I'm not sure why anyone would voluntarily opt to be paid via an UC. Who wants to pay Employee AND Employer's NI? Who wants to be landed with paying the Apprenticeship Levy? Who wants to forfeit a percentage of their wage just to be paid?

    An ex-colleague works long term supply via an UC and her tax still isn't right. She's had bills from HMRC for two years running because her UC have underpaid her tax.

    As others have said, the OP would be better off contacting HMRC and splitting their tax code...or simply waiting for a rebate after the new tax year. If the balance of work between their agencies shifts, they can contact them again. Many supply teachers do this.

    I hope that you manage to get it sorted out @imaginepigs. :)
     
  12. keyportfolio

    keyportfolio New commenter

    Joining an umbrella company doesn’t suit everyone’s circumstances of course, but many supply teachers find it works well for them. As you noted, I do work for an umbrella company so have lots of experience speaking to people about this and have heard many perspectives over the years.

    There are certain benefits that appeal to some people, and getting paid for work through multiple agencies under one tax code is one of them. Of course the OP has other options, as you said, but not everyone can afford to wait for a rebate and often it’s hard to predict how the balance of work will fall between your agencies.

    It’s certainly not my intention to promote umbrella companies for all people in all circumstances, but in this particular thread, I felt it was important that the OP (and anyone else reading with a similar challenge) heard all their options. They can then decide for themselves what they're better off doing.

    @imaginepigs, if you do consider a switch from PAYE to umbrella, definitely speak to your agencies about increasing your daily rate. As LunaBlue123 touched on, an umbrella rate needs to factor in Employer’s NI, the apprenticeship levy and the umbrella’s margin.

    Also, @LunaBlue123, it sounds like your ex-colleague is in an unusual situation. Hopefully she’s spoken to HMRC and her umbrella company to see what can be done to avoid it happening again this year.
     
    imaginepigs likes this.
  13. keyportfolio

    keyportfolio New commenter

    Are there really no circumstances when you’d be happy for someone to join an umbrella company? Can I ask why?
     

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