I've just started with a supply agency and I have a few concerns about the way I get paid. I don't think I'll get a straight answer from the company so I'm hoping someone on here can tell me if i'm being stiffed.
Basically, The agency uses an 'umbrella' company for payroll. I work, submit timesheets and expenses and I get paid minus their fees, NI and PAYE. All well and good (apart from the fee they charge, that is!). But, The expenses I submit (subsistence and mileage) gets used to 'offset' my tax and NI conts - this is the bit I really don't understand and, frankly, sounds a little dodgy.
Can anyone tell me how such a scheme works?
I don't intend on being with the agency for much longer than a couple months but I am worried as I am also registered as self employed and I don't fancy getting stung for tax. I've asked if I can invoice directly, but the umbrella company said that isn't possible.
Sounds like Protocol National - I'd check with the tax office.
In principle this is fine. The Agency should have some dispensation from HMRC to do this - it's how it worked for me when I was an IT contractor. If you're being allowed to claim travel and subsistence you need to meet HMRC criteria for a 'temporary' workplace. Other expenses tend to depend on what your job is
Fine and normal for an umbrella company. Not out of the ordinary at all.