Hi Experts,
For the tax year 2020/21, my payroll ran through Umbrella PAYE.
During the contract agreement only my net take home monthly was agreed and been mutually agreed as per contract all NI and Taxes will be paid by Company.
To my surprise, i started receiving salary twice during the payroll only one amount been reported to HMRC. When I repeatedly asked if this is a tax avoidance i was been assured during end of tax year i would be given a P11D form which will have BIK(Benefits-in-Kind). And all taxes and NI will be taken care by the company.
When i recently reached to my Umbrella company to file the self-assessment they only gave P60 and not P11D and was been told it is not required to file.
After going through google search regarding this matter i understood i was been mislead and cheated. I would like to approach HMRC but with out a proper ground work and shield i can't get away from this issue and might need to pay Taxes and NI from my pocket.
I have read articles regarding "Benefit Cash Advance" termed as "Loan". I am not 100% sure but i think this is the loophole Umbrella Company used.
What are the rules around "Loan", i would assuming it is legal but it needs to be paid back to company or company need to write off. If i ask umbrella company to send me a statement on the company letter head to write off the Loan this is above 10k ? assuming Umbrella Company pays the Employer NI. Will i then be obliged to pay Tax and Employee NI ? If not, what would be the impact on me as individual on my tax profile and credit scoring or will there be any other issues i need to look out ?
Can expert guide me on this ?
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