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worked for 5 days but get 4 days worth of pay

Discussion in 'Supply teaching' started by s4mm13, Dec 5, 2011.

  1. I'm one of those luck individulas who gets my pay through an umbrella company.
    I've been so so lucky to get a 5 and a half week sick cover and have just got my pay slip through. Out of the £375 I earnt at £75 a day for one week,
    £16.88 went to cover the umbrella costs (yet I still get wet when on duty in the rain??!!)
    £26.94 went to pay for my employers NI contribution (can they not afford it themselves? not to mention it is more than my own!!)
    £23.06 went out for my own NI conrtibution (this is fine!)
    £3 went to pay for my student loan!!
    So I get the grand sum of £305.12
    Now, I was under the impression that my student loan is only repayable when I earn over £15,000 a year. It may seem that way from a glance, but my job is only for a few weeks :eek:(
    Overall I'm very disappointed and feel cheated out of money that I worked damn hard for and I need every penny of it.
    I know that I'm so lucky compared to some others here, but I still need every p enny of the money i've worked hard for.
  2. When I was referred to an umbrella company they told me not to bother as I would loose out. I earn below tax and ni amounts so can't claim expenses as these are done by tax relief and are the only way you can even out your pay because of their deductions etc. As my agency are refusing paye I am now invoicing them for full amount and sorting my own tax out. I am registered self employed and have an ni exemption for small earnings, however I have landed afternoon work til the summer so may need to review this.
  3. modgepodge

    modgepodge Established commenter

    If you overpay your student loan you can write to them at the end of the tax year and they'll repay anything you shouldn't have paid, much like a tax rebate. I've never bothered though, as I'll (probably) have to pay it back eventually and it doesn't seem worth the hassle!!
  4. That's kind of the conclusion I've come to, but still a little p'd that I've lost almost a days worth of pay through fees etc. Just doesn't seem fair...
  5. jubilee

    jubilee Star commenter

    £75 per day is not even the daily rate of an NQT!
    Most employees on PAYE reckon on deductions of about a third of pay when they are well into the income tax bracket.
    You can indeed contact SLC for a refund of unwarranted deductiosn. The system looks at each pay period and assumes you will be earning the same throughout the year and thus assumes wrongly that you will be earning over £15k in the financial year.
    You are paying the employer NI because you are deemed to be the employer! You're a type of self employed worker when accepting Umbrella Company arrangements.
  6. jubilee

    jubilee Star commenter

    As a supposed self-employed person, you should be setting the daily rate for your time!
  7. If you are working for an umbrella and are iso-self-employed, what the hell are you doing:-
    1. Not being limited liability.
    2. Not setting your own rates.
    3. Allowing these chumps to fleece you. ???

    It strikes me that you have been duped into having the worst of all worlds.
    If you will insist on maintaining this supply teaching, borderline starving nonsense, at least structure yourself legally so you pay no tax.
    NB:- There is no such thing as tax avoidance. There is only fraudulent evasion, or playing the tax rules to the letter of the rule as set out by the rule makers. It's the mugs who pay too much. Probably because they can't be ***** to learn about it....
    If you are working for an Umbrella you are clearly being fleeced, so it's time to structure yourself so that whoever hires you pays you what you are due and nothing less.
    I think you will find that agencies may turn a sort of grey-area blind eye to the legislation (IR35) and suggest you use an umbrella. This is probably in the small print due to you having responsibility for not breaking the law with tax. They probably pass the buck.
    I had this explained to me by Select when I moaned that a lot of my earnings were going on fuel. "We'll only take you on as a Ltd company" as if you are a sole trader, THEY are responsible for your tax payments as outlined by IR35.
    It is unlikely that the agency will put themselves at risk and these offers are merely passing the responsibility onto someone else. Curious how the umbrella pay Employers NI. Odd indeed. The devil is in the detail of the small print and ignorance is not an excuse.
    If there is enough work to make it worth your while:-
    a). Can you get hired if you are a separate company? You set the rates and you deal with the tax law.
    b). If not a. Will the agency pimp you as a limited company. Of course, you could have a few working directors who deal with the relevant fees and the finance issues.
    NB:- Look into what a directors loan is and then realise as a Ltd, paying tax and NI is a lawful option.
    (However, you will not see this written on the front page of HMRC's site.)
  8. Jubilee and Stuart,
    Thank you both for your comments.
    Jubilee, I am indeed an NQT so very new to all this and unsure of what I am/am not entitled to do.
    Stuart, You may see me as being a little 'thick' here, but i'm not sure i understand the majority of your post![​IMG]

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