I have worked for a HGv Agency which is using Umbrella scheme, for about 4 months between 2022 and 2023.
Now I have finished working for this agency and have asked for my holiday pay. They have replied that ‘anything from 2022 was not carried over’ and ‘it needed to have been used in 2022’.
Are they correct to do this?
Many thanks.
What did your contract say the devil is always in the detail. Also a lesson possibly learnt for using umbrella companies, shysters of the highest order they are disguised as a company that lays you more of your money.
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Don’t think I have ver had a contract. Might have signed something online but nothing in email or through post.
jackam1122:
Don’t think I have ver had a contract. Might have signed something online but nothing in email or through post.
You probably have signed various things or had some terms and conditions. However without a physical contract or terms and conditions I’d suggest you are probably ■■■■ out of luck most likely.
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Who was your umbrella company you were paying a fee to try and save you tax? You would almost certainly have some things to sign.
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And to be fair you’d have some contract info and paperwork from the agency actually. So the holiday pay situation is down the agency, as the umbrella company is just a way to pay you supposedly PAYE without paying all the necessary dues.
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AIUI, the problem is between you as the driver with the umbrella company, and it’s the umbrella company who are contracted with the agency.
Either way, you must have exchanged some documents, and that’s where the fine detail will be.
simcor:
you were paying a fee to try and save you tax? You would almost certainly have some things to sign.Sent from my CPH2173 using Tapatalk
There’s a job i want to go for, it’s through an agency and the only payment they offer is through an umbrella. So it’s not always the driver trying to save tax, but it could be the agency just trying to earn extra fees.
Holiday not being carried over at the end of the year is standard practice in many jobs regardless of agencies or umbrellas. So if you have both of them, you have no chance. You need to know when the relevant end of year is.
stu675:
simcor:
you were paying a fee to try and save you tax? You would almost certainly have some things to sign.Sent from my CPH2173 using Tapatalk
There’s a job i want to go for, it’s through an agency and the only payment they offer is through an umbrella. So it’s not always the driver trying to save tax, but it could be the agency just trying to earn extra fees.
Holiday not being carried over at the end of the year is standard practice in many jobs regardless of agencies or umbrellas. So if you have both of them, you have no chance. You need to know when the relevant end of year is.
Do what you like stu, but research it on here plenty of info, I’ve been umbrella in the same scenario as it was sold to me by the agency that was the only way before I knew about umbrella companies.
They are shysters as are agencies, most agencies are screwing drivers telling them they have to use an umbrella scheme cause they get a kick back from the umbrella provider.
It is sold to you as a way to pay less tax and keep more of your money. In actual fact you are paying a fee to have your wages paid to you etc. So it is drivers trying to save on paying their due tax as you are told it’s in your interests to do so and you go along with it.
An agency cannot insist you must go through and ubrella scheme. They will however coerce you to do so.
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Your employer pays your National Insurance out of your gross pay. But they also have to pay some national insurance as well, on your behalf, so the state gets two payments one from you and one from them.
What some, if not all, Umbrella companies do is not only take your National Insurance out but also pay THEIR contribution out off YOUR wages, which is well naughty, it’s not the agencies usually but the UMBRELLA COMPANY.
I was double manning once and we could never figure out our payslips which read like a Chinese puzzle!
My advice would be to go LTD, save 21% of your GROSS pay, then contact HMRC and they will tell you how much you must pay in tax. Then contact DWP to ask how much insurance they want. Unless it’s a good company like a hauliers who do a straight PAYE.
Sorry, I don’t know anything about holiday pay.
Sorry I don’t know anything about holiday pay. Also, I’ve seen one company paying every four weeks, I wouldn’t go there unless you are rich… If there’s an argument or a bust up and they are holding your money …
Another prime example of the only good umbrella is one to keep you dry in the rain 
Having a holiday year is perfectly valid and it can be a calendar year, financial year or a year that ends on the anniversary of when you started.
You need to be on the ball with your holidays as agencies and umbrella schemes are exactly the types to keep your holiday pay if you don’t request the days.
Newbie 1:
My advice would be to go LTD, save 21% of your GROSS pay, then contact HMRC and they will tell you how much you must pay in tax. Then contact DWP to ask how much insurance they want. Unless it’s a good company like a hauliers who do a straight PAYE.
With the IR35 rules coming in, I’m not sure there is as much of that now.