New agency and payslip looks wrong

Bit off topic but wasn’t sure who else to ask that might know the answer.

Newly qualified driver (7 month’s), I done 6 months work of agency to start myself off and all was fine, I did my hours and got taxed fine and I had a holiday pot which I gradually grew up with the hours I worked and after 6 months I got a lump sum as I left that agency.

Now my question is I’m in a temp to perm job for 12 weeks through a agency and after 12 weeks I will get offered a job if all goes is well. The way it works is the company tells the agency how many hours I’ve worked and the agency tells an accountant firm to pay me. It’s fine through umbrella (1st for me). I done a lot of hours this week 68 ish and was hoping to get a large pay slip £964.08 but I took home £641.21 so a difference of £322.87, which I thought was very high so I asked for a breakdown. The reason I got was this.
Good Afternoon Jonathan,

I hope your well.

Please see below the breakdown of your wages:

Based on £9.66 per hour for 39 hours, £19.32 for 8.75 hours, £14.49 for 21 hours and £114.00 expenses in total.

Total £964.08. (before any deductions).

Deductions from the Reconciliation Statement -

Company Overhead – £10.00
Employers’ NIC - £82.95

Deductions from the Pay Advice -

Tax (PAYE) – £92.60
Employee’s NI - £55.78

Holiday Pay - £69.79 – this has been accrued for you so it will appear as a deduction.

Total Deductions – £322.87

Total deductions [£241.33] – Total gross figure [£964.08] = [£ 641.21 ]

What I don’t understand is my holiday pay is being deducted from the wages I’ve earned, surely you earn holiday for the hours you work not the opposite, It feels its just a way for them to earn interest on my holiday pot but it’s not even a holiday pot as it’s my wages… So basically it’s a 0 hour contract is what I see.

If anyone can make sense of this I’d highly appreciate it. Thanks in advance

Assuming the £114.00 expenses is correct, I agree it appears they’re making you pay your own holiday pay and that’s not the way PAYE is supposed to work

If the hourly rates are what was agreed then you should get in touch with the agency and ask them why they’re not paying you holiday pay.

The problem in your post is he word Umbrella by the looks of it. When I was on agency I did have to accrue my own holiday pay out of my earnings as used to be the case if your Umbrella.

So I’d say your pretty screwed and the reason all this Umbrella stuff needs stopping.

Unless you are PAYE then something is amiss, but you mentioned the Umbrella word which means your most likely not PAYE from my experience.

Do you have it in writing that your paye?

Sounds to me like your self employed if they are deducting holiday pay

I’m not self employed as I had 2 options self employed or this umbrella thing and she said all ur taxes ect are all done for u, so like any job I would have thought.

So this umbrella thing is just a fancy word for a 0 hour contract essentially?

The £114 is for night shift allowance.

Jonny17291:
I’m not self employed as I had 2 options self employed or this umbrella thing and she said all ur taxes ect are all done for u, so like any job I would have thought.

So this umbrella thing is just a fancy word for a 0 hour contract essentially?

The £114 is for night shift allowance.

I am not being rude but to repeat the question I asked, do you have it in writing that your paye? Really sounds to me like your self employed regardless what they said to you.

I don’t know about the zero hours bit but why deducting holiday allowance for zero hours if so?

Also shouldn’t shift allowance be wages rather than expenses? Unless you mean night out money?

Unfortunately it looks like you’ve gone through an umbrella scheme which is never a good idea.
And in essence, all agency jobs are zero hour contracts, you are deemed to be a casual worker regardless of hours worked.

Sorry I don’t have it in writing than the I’m PAYE, I’ve never worked with this umbrella scheme before but from what I can see but ur ur messages, just stay away from then if u can.
The night shift hours just go under expenses for some reason not sure why.

I have done 7/12 weeks and if I get hired it will be PAYE and I’ll have my set amount of holiday days to book as it will be all done through the company. I’ll just sit it out for the 5 more weeks I think as it’s not worth all the hassle of going self-employed for that little time in my eyes.

Thanks all for ur comments

By the things you write you’re already self-employed. I wouldn’t like missing some hard earned money for another 5 weeks. Do you have it in writing that you will be PAYE in 5 weeks■■?

I think they screwing you BIG TIME ((

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I’m certainly no expert in any of this, but it seems your pay slip is listing that the Employer’s NIC is being taken from your wages, therefore you must be your own employer through this Umbrella scheme. You are not PAYE at all.
So, who is holding this “holiday pay”?
Are the payments for the tax man held somewhere safe?
As I say I’ve no expertise in this, but I would be asking a lot of questions if I were in your position.

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Don’t worry you are PAYE, it even says so on the breakdown. You are being paid £7.81ph.

You are employed by the umbrella company, though in actual fact it is just a payroll facility for the agency and a protection from IR35 claims.

You are paying £10 pw to the umbrella company which is how they earn money. Presumably the agency bills the client (who you work for) for contractor recruitment services not provision of labour.

Obviously there is no scope for paying you for holidays when all the umbrella company earn is £10 per week. So the additional costs for the holiday pay and Employer’s NI contribution etc. is added to your £7.81ph taking it to £9.66ph

£9.66ph is effectively the self employed rate for the job, not the PAYE rate.

Your employment or service contract should tell you if this is what you agreed to when you signed up.

I would check to see what the permanent pay rate is, it also might not be as good as you think!

Those of you are saying I’m self employed, I had 2 options to choose from self employed or the umbrella scheme. But I’ve never done my own taxes before or anything like that and from what she described the umbrella scheme worked but I was under the assumption I would also get holiday.

Thanks bigburner for working that out for me, that was never told to me or even mentioned on the job site I found is job, very sly of them to not mention this.

I spoke to then briefly on the phone and she said that my holiday pay is incorporated in my wages. Not sure if I should say anything or what to even say to the agency as at the end of the day that offered the job, the accountants just pay me what the agency give them.

Do you think I should ask the agency why I wasn’t told my holiday is incorporated in my wages, essentially I’m on £7.81ph?

(i worked in sainsbury’s for 6 years night shift and got paid more than that for stacking a shelf than driving a lorry, thankfully this is a short term thing)

Jonny17291:
Bit off topic but wasn’t sure who else to ask that might know the answer.

Newly qualified driver (7 month’s), I done 6 months work of agency to start myself off and all was fine, I did my hours and got taxed fine and I had a holiday pot which I gradually grew up with the hours I worked and after 6 months I got a lump sum as I left that agency.

Now my question is I’m in a temp to perm job for 12 weeks through a agency and after 12 weeks I will get offered a job if all goes is well. The way it works is the company tells the agency how many hours I’ve worked and the agency tells an accountant firm to pay me. It’s fine through umbrella (1st for me). I done a lot of hours this week 68 ish and was hoping to get a large pay slip £964.08 but I took home £641.21 so a difference of £322.87, which I thought was very high so I asked for a breakdown. The reason I got was this.
Good Afternoon Jonathan,

I hope your well.

Please see below the breakdown of your wages:

Based on £9.66 per hour for 39 hours, £19.32 for 8.75 hours, £14.49 for 21 hours and £114.00 expenses in total.

Total £964.08. (before any deductions).

Deductions from the Reconciliation Statement -

Company Overhead – £10.00
Employers’ NIC - £82.95

Deductions from the Pay Advice -

Tax (PAYE) – £92.60
Employee’s NI - £55.78

Holiday Pay - £69.79 – this has been accrued for you so it will appear as a deduction.

Total Deductions – £322.87

Total deductions [£241.33] – Total gross figure [£964.08] = [£ 641.21 ]

What I don’t understand is my holiday pay is being deducted from the wages I’ve earned, surely you earn holiday for the hours you work not the opposite, It feels its just a way for them to earn interest on my holiday pot but it’s not even a holiday pot as it’s my wages… So basically it’s a 0 hour contract is what I see.

If anyone can make sense of this I’d highly appreciate it. Thanks in advance

Could be wrong but surely you shouldn’t be paying the Employers Ni contribution - that’s there job■■?

It’s called, ‘Rolled-up holiday pay.’

If you want to google it, there’s plenty on the subject…

You are not PAYE if you are paying Employers NIC and your holiday pay is included in your hourly rate.

An out & out scandal that these things go on in this day & age.