My name is Algirdas. I work as labourer in London construction through recruitment agency on PAYE scheme. I am writing regarding government legislations: construction PAYE labourers who, in my opinion are taxed twice and are victims of greedy construction companies, recruitment agencies and payroll companies, can not be self employed or have limited company. In my opinion all this situation in construction industry is "Legal Scam".
My tax code: 1150L/Cumulative. Pay rate: 8.50 - 10£ per hour before Tax. Average working week: 45-50h; I got paid weekly through bank.
I would like to ask several questions:
1) Is it legal for Employer to deduct Employers National Insurance from Employee (Me)?
2) Is it legal for Employer to deduct Employers pension contribution from Employee (Me)?
3) Is it legal for Employer to deduct Employers Apprentice Levy (new one!) from Employee (Me)?
In 2014 I had (by new legislations) to sign an agreement with my Payroll Company by which Payroll Company becomes my Employer and I become – employee.
Analysing my payslip I could not understand why and how my weekly NET wage dropped down so drastically. On this new compulsory umbrella PAYE scheme I am losing at least £3000 NET each year. Not even talking about sick pay, holiday payments (calculating from minimum wage) or clothes, tools expenses or unincreased hourly rate for 4 years...
It would be great if any tax experts could help me and give any advise on how to escape all this nonsense or if goverment could take actions from ripping money from poor people. I just don't want to be tricked by my Employer, Agency or avoid any Tax payments.