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TP scraps Umbrella Payroll

Discussion in 'Supply teaching' started by nearmiss, May 18, 2017.

  1. nearmiss

    nearmiss Lead commenter

    No kidding. T-------- Personnel have written to all their associates today. They have finally decided to scrap Umbrella Payroll, and about time too. I hope that most of you will see this as good news and hope that it triggers a house of cards effect very soon.
    Here is what they have to say. (Don't you love the tone?)

    "Due to the recent changes with Umbrella Companies that the HMRC have brought in, you should now be aware that we no longer use them, unless you specifically request it.

    We are aware of many other agencies still using Umbrella companies, so why don't T Personnel Ltd?

    Quite simply you lose money! And we don't want that!

    The main change is that you can no longer claim expenses and added with the cost of using an Umbrella Company, accompanied by you paying the employers NI, you earn a lot less!

    I am contacting you to show how T Personnel's PAYE option means you earn more, for less…

    Let me explain…

    For example as an SEN Teaching Assistant (experienced):

    If Teaching Personnel pays you £65 per day, and you work for a week, you will take home: £281.91

    If Agency A, who pays you through an Umbrella Company, pays you £65 per day, and you work for a week, you will take home: £230.93 earning £50.98 per week less than being paid through Teaching Personnel's PAYE, that's £203.92 per month (on average)!

    If Agency B, who pays you through an Umbrella Company pays you £80 per day, and you work for a week, you will take home: £281.93 2 pence more per week than earning £65 through Teaching Personnel.

    So although you may feel that you are earning more through other agencies, if you are being paid through an Umbrella Company, you may actually be earning a lot less! And even when you feel you are earning less through Teaching Personnel Ltd, you are in fact taking home more than you would on a higher rate through an umbrella company!

    We welcome any calls in regards to discussing your pay, in regards to our PAYE, Umbrella Companies, or other.

    *The figures above are worked out on a generic example. Actual take home pay may vary slightly due to your tax code and any other circumstances.

    Thank you for your time and we welcome any questions,"

    Who'd like to go first?
  2. educ80

    educ80 Occasional commenter

    So they have either (a) just worked this out and are incompetent or (b) have known all along and should be looking at reparations.....

    I'm sure that will be forthcoming.
    nearmiss likes this.
  3. nicola_easson

    nicola_easson New commenter

    I really hope this filters through other agencies quickly!
  4. nearmiss

    nearmiss Lead commenter

    Exactly. I fear that the option b is more likely. Why did agencies coerce teachers into signing up to these complex and questionable deals? They knew it was a con.
  5. schoolsout4summer

    schoolsout4summer Star commenter

    One of the agencies that I work for have recently started paying via Umbrella. I would drop them if work wasn't so scarce.
  6. Camokidmommy

    Camokidmommy Established commenter

    @schoolsout4summer even if they say they use an umbrella company I believe you can tell them to pay you as PAYE.

    That was the case when I worked for the company mentioned above a few years ago. They didn't like it but it was better for me.
  7. les25paul

    les25paul Star commenter

    When I worked for
    [This comment/section/image has been removed for breaching our Community Guidelines/Terms and conditions]
    a few years ago they gave me the option of PAYE or using a UC. Unfortunately TP weren't as good at finding me work as other agencies.

    However I suspect that following this move by them they will "poach" teachers from other agencies and pull in more work.

    Good for them.
  8. WildKyogre

    WildKyogre New commenter

    When I signed up in April, my agency worker specified that I had a choice but would be worse off choosing the umbrella company, which was nice of them.

    (Different agency, not TP)
  9. BelindaCM

    BelindaCM New commenter

    Has anyone who works for Capita (under umbrella company Key Portfolio) been allowed to switch to PAYE? Do we have an choice?
  10. Camokidmommy

    Camokidmommy Established commenter

    I used to work for TP under the same UC but after a couple of months realised that PAYE would be better. They didn't like it but I did change. You do have a choice so def change.

    TP didn't find me much work unless I hassled them but I was with another company who paid better do hassled them more! Eventually I did direct work which was even better!
  11. stan-dards

    stan-dards New commenter

    I worked for Capita who used Key Portfolio & they caused me loads of problems .Due to their incompetency or corruptness I was landed with a £6000 tax bill as they said I was self employed when I was not as I was paying PAYE tax.!! The tax people have gone as far back as my 2009 work with these 2 companies!
  12. MonMothma

    MonMothma Lead commenter

    My agencies do PAYE. They mentioned the recent changes.
  13. nearmiss

    nearmiss Lead commenter

    BBC radio 4 are interested in speaking to supply teachers, who have had problems with umbrella payroll companies. Have you been pushed into umbrella payroll , Have you been denied access to PAYE? Please PM me.
  14. schoolsout4summer

    schoolsout4summer Star commenter

    I am concerned that that there are no stoppages whatsoever - not a penny. I read recently that a poster had had difficulties with the Taxman, over their Agency's claim that they were self employed - when in fact they were not.
  15. stan-dards

    stan-dards New commenter

    How do I PM you?
  16. nearmiss

    nearmiss Lead commenter

    Click on my name or my silhouette, click on conversations, and that should do it.
  17. elizabethelliott

    elizabethelliott New commenter

    Hello Nearmiss,
    I currently work for four different agencies, 3 pay through RACS, an umbrella company - I pay employers AND employees NI plus a fee - and one through AZEBRA - still a fee but no employers NI.

    The problem is splitting your tax allowance between the agencies. I have only recently become aware that you can ask to be paid by PAYE, I am a bit nervous in case I lose work, I am not sure what the advantage the Umbrella companies provide to the agencies.

    I have never been able to understand why I am technically "employed" by the Umbrella company but have to pay Employers NI. I would rather be self employed, I take or turn down whatever work I wish and if I don't want to continue in a particular job, I leave.

    Last year I went down the limited Company route provided by RACS but most of the benefit appeared to be for RACS in the excessive fees they charged, I have now closed the company and am back on the Umbrella scheme.

    There are too many people making a lot of money from supply teachers and the schools.

    Elizabeth Elliott
  18. daniellemhuggett

    daniellemhuggett New commenter

    I am proud to work for a Teaching agency in Milton Keynes and we do our own PAYE and always have, we pride ourselves in matching the right Teachers and support staff in our schools and have done for 17 years. Work is plentiful and we have a great team.
  19. nearmiss

    nearmiss Lead commenter

    It's on radio 4 today, just after 12.00.
  20. schoolsout4summer

    schoolsout4summer Star commenter

    nearmiss likes this.

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