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The CSA are fiddling the tax so I pay extra

December 14, 2012

The CSA have taken 11 months to sort out my weekly payments even thought they have had all payslips required from day one.Because I work for a company that uses an agency to provide employees, they have stated that the agency are operating a tax fiddle by how they produce payslips.

On the payslips they have my tax contribution as 7 pounds per week and expenses as 30 pounds per week.I pay the full amount of tax for what I earn as I have contacted the tax office who, have told me this. I am not claiming any expenses as I live only 5 mile from my place of work.

The CSA have calculated my net wage as over 40 pounds more per week than I actually earn. They say they know the agency are fiddling the tax but because of this I have to pay extra. Surely this cannot be right. Can anyone help please.

Paul

Written by Paul Harrison · Filed Under CSA Advice 

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Comments

  • wilf says:
    December 14, 2012 at 5:08 pm

    A number of agencies use this strategy so the tax of their clients is reduced.
    This enables firms to pay lower wages. So that working tax credits can be claimed paid for by the taxpayer. Thus subsidizing the profits of these firms who use agency workers.
    Unfortunately the CSA take the gross amount you are paid, which includes as you say fictitious expenses, and deduct the actual tax paid as shown on your pay slip and national insurance to obtain your net income for the assessment.
    These agencies are cheating the ordinary tax payer as well as HMRC.
    Another tax avoidance scam.

  • wilf says:
    December 14, 2012 at 5:17 pm

    Another misleading title.
    The CSA are not fiddling the tax, it is the employing agency who are fiddling the tax by attributing non taxable expenses where, as Paul says,none are claimed.

  • Alice says:
    December 16, 2012 at 3:57 pm

    the agency you are using are working as an umbrella company, this is a legal tax dodge as it generally means that the employee is given an amount of tax free earnings each week/month for ‘expenses’. As wilf says the csa will take your gross less your tax and ni (and any pension contributions) and work out a net figure which is what they will base your maintenance calculation on. There are certain expenses which the CSA will allow, these have to be genuine and necessary for you to perform your day to day work – examples of which are construction workers travelling between various sites and using their own vehicles etc.

    again as wilf says it is not the csa who are fiddling your tax, you are benefiting from paying a reduced amount of tax on your income.

  • Paul says:
    December 16, 2012 at 4:31 pm

    Hi all
    I am not benefiting from paying less tax at all, actually I am paying the correct amount of tax as verified by the Inland Revenue. They have expenses showing as thirty pounds per week which I cannot and am not claiming and this is being included in the CSA’s calculation, which they have verified.

  • wilf says:
    December 17, 2012 at 9:43 pm

    Paul:- It’s the companies that benefit in some way.
    Why don’t you ask them why expenses are shown when not claimed.
    Your gross will include the amount included for expenses, your taxable gross will be lower because it does not.
    You benefit because you correctly pay less tax.
    Which ever way you look at it the CSA will consider the total amount paid less tax, national insurance and pension contributions, and this includes the amount shown as expenses.
    This because they considered these “expense” to be part of the earnings you receive.

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