Expenses not paid until I start to pay tax?(12 Posts)
I have recently started working a s a supply teacher through an agency. The agency is very small so use a payroll company to deal with pay and expenses etc. I only working 1-3 days per week and the daily rate is not high so I'm not earning a lot. I have noticed that my expenses have not been paid although they have been authorised online. I phoned the payroll company and was told I will be paid my expenses when I start to pay tax. I am unlikely to earn enough to pay income tax this year I would have thought and said as much on the phone. Nobody seems to know what I can do about it. I can't believe that this hasn't come up before you. All I want is to be paid the money I am owed. Does anyone know what I can do in this situation? Tia
Sorry about typos. Trying to juggle a baby and type!
I don't pay tax but still get my expenses - I have still paid out that money for expenses irrespective of how much I earn - doesn't sound right to me. What type of expense is it? Travel? Is it x pence per mile or something that you are owed?
Hopefully somebody will come with advice. Could you ask them for their terms and conditions of employment and if they have anything in writing showing that is their policy. It doesn't seem right at all to me. Are the expenses for travel?
Sorry cross post. Nobody had replied when I wrote it.
Yes expenses are travel (mileage) and also subsistence and professional fees (dbs check). I can't find anything in the contract about this and it wasn't mentioned when I registered with the payroll company. I just cannot believe that I am the only supply teacher employed this way who is in this position. Surely they will have encountered this sort of thing before? It's so infuriating.
does the contract say they will pay the expenses but say nothing about not paying them till tax is due? If your contract says they are payable then they are payable whatever. If no one got expenses back till tax was payable then people could earn a penny less than the tax threashold and never get reimbursed - I am on a zero hours contract and not on a fantastic hourly rate when I do get work - I could not afford to give away my expenses - I get travel mileage back and am required to do various courses eg first aid that I have to pay for and claim back - that's alot of money - there is NO way that they can say you get no expenses unless you pay tax - what if they don't get you enough work? No this cannot be correct and it is not acceptable that no one seems to know - you are being fobbed off.
Just checked the contract and it says that expenses will be subject to paye and nics, which I would expect but there is nothing in there to say unless you are paying tax you will not be paid your expenses. Grrrr.
When I worked with an umbrella company the expenses were part of a tax free allowance so you didn't actually get that money I just didn't pay tax on that part. Speak to the agency and ask exactly what is going on but umbrella companies are normally just a way of minimizing tax
Supply teachers would not use an umbrella company as contract is subject to paye so a different regime so OP should receive expenses and actually I cannot see how they should be subject to paye and nics - if you incur for example a professional fee you should get 100% reimbursed. I get 40p a mile travel allowance and I receive 40p - I will have to declare it on my tax return at the end of the year but I receive it in full each month. When I was a lawyer I had the option to use an umbrella co but they tend to be used in slightly higher paid professions to maximum expenses and pay corporation tax rather than paye as the former tends to work out more advantageous for the worker.
Well that's the issue I think as it is an umbrella company. The supply agency I am with use them for all their payroll stuff. The woman I spoke to on the phone was shocked by how little I was paid and actually said they shouldn't have signed me up in the first place! Think I will have to phone the agency tomorrow and see what they say. I just find it hard to believe that this is the first time this has happened.
A supply teacher NOT paid through an umbrella company wouldn't get travel expenses, and the CRB would be paid by the agency. Using the umbrella company is a way to minimise tax and Ni etc by offsetting expenses against tax - travel can only be taken into account if you work at multiple locations I believe.
If you work at one school, it's probably not correct for you to be paid that way at all
If you have more than 12 weeks continuous service with one employer (inc one LA if you have worked at several LA schools) you are entitled to be paid according to school teachers pay and conditions - google Agency Worker Rights
What's your cv? What pay point were you last on before going agency? What sort of school are you in? Academy or LA?
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