Getting paid
No-one enjoys unpleasant surprises. At Pure Care Services, we understand that you work hard and deserve to be paid promptly and without worry of having to pay additional taxes in the future.
A number of umbrella companies have abruptly shut down, often leaving workers out of pocket by failing to pass on funds paid to them by their agency.
We are also aware of workers receiving letters from HMRC claiming that they believe they have engaged in tax evasion and owe tax retrospectively.
It is important to highlight that many umbrella companies operate in a compliant manner, but we want you to be aware of the risks of using external entities to handle your pay.
The benefits of working PAYE with Pure Care Services
- Get paid faster – next working day, directly to your bank account
- Attractive Hourly rates
- Say goodbye to yearly compliance renewal costs
- No umbrella or accountancy fees
Why we believe you should choose PAYE over an umbrella company
Working PAYE is a more legitimate option. For starters, Pure Care Services is 100% compliant with HMRC, so there will be no unexpected surprises from the taxman.
Furthermore, tax relief can be claimed on the expenses you incur during the year – claim tax relief for your job expenses – GOV.UK (www.gov.uk)
If you’d like to explore PAYE with us further, please contact us via:
E-mail: [email protected]
Phone: 0121 582 0695
Advice regarding use of umbrella companies
Several umbrella companies have recently gone out of business after failing to pay HMRC. This can have a negative effect on their employees, leaving many out of pocket.
HMRC have recently updated their guidance on what you should expect when working through an umbrella company:
www.gov.uk/guidance/working-through-an-umbrella-company
When you opt to be paid through an umbrella company, you must ensure that you pay the correct amount of tax and national insurance.
Accordingly, it may be sensible to set up a Personal Tax Account:
www.gov.uk/personal-tax-account/prove-identity
This allows you to verify the income and tax stated on your payslips and P60 forms and claim tax refunds.
Please be aware that the hourly rates we pay umbrella companies cover all of their expenses, including employer national insurance, pension payments, the apprenticeship levy, and all holiday pay entitlements. Your umbrella company should be able to explain how these figures are determined for each payslip you receive.
You can also find out about companies and their directors using ‘Get Information about a company’:
www.gov.uk/get-information-about-a-company
You can check whether directors were involved in previous businesses that were unsuccessful. You can also check to see if HMRC is owed any substantial amount of money. You do not need to be an accountant; simply examine the balance sheet in the most recent set of accounts filed under debtors and “other tax and social security.” Frequently, when a business is closed by HMRC, employees are left unpaid.
You may have read about a recent case in which the calculation of holiday pay is changing. It is too complicated to go into detail in this article. However, we are aware that not all umbrellas have been accruing 12.07% of pay as holiday pay. We recommend you check your payslips to see how your holiday pay is accrued and ask your employer what they intend to do in the future.
We are also aware that pension contributions are sometimes deducted over and above the minimum Government requirements. This is OK if that is what you agreed with your employer. We suggest you check your payslips to see what employee contributions have been deducted and what employer pension contributions have been paid.
You can check these at ‘Workplace Pensions: What you, your employer and the government pay’:
www.gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay
You should also check with your pension provider that these are the amounts that have been paid into your pension pot and that you have received all available tax relief.
Finally, we suggest that you check that any deductions other than PAYE, NIC and pensions are in accordance with what you were told when you were first employed. We know that it can be difficult to understand your payslip, but there is still free help available:
- Agency workers | www.jobsaware.co.uk/advice/agency-workers
- Take-Home Umbrella Company Tax Calculator | www.payslipbuddy.co.uk/umbrella-company-calculator
If you would like to discuss any of the above further or have concerns about how you are paid by your umbrella company, please email [email protected]
