TSA (Travel and Subsistence Arrangement/Allowence) Scheme

[pepper79]

Hey all.

 

I'm so sorry if this is the wrong place to ask but I had no idea where to put it so please feel free to move it to the correct place.

 

I am currently working in a temporary, full time position with the possibility of going permanent after 3 months. While I'm temp, I am "under" Manpower, if/when I go perm I then get took over by the company I am working for.

 

Manpower use the TSA Scheme but I'm having a few problems and I hope someone can help me.

 

I have been paid 4 times (I worked 1 week in hand and get paid weekly while temp). My first wage and TSA was correct:

TSA Allow: 34.60 - A TSA Adjust: -34.60

the allow and adjust matched but the next 3 payments have not matched:

TSA Allow: 43.25 - M TSA Adjust: -47.58

as you can see, what has been taken out is greater than what has been put in, which means I am short by almost £5 per week. I asked our point of contact for Manpower if the allow and adjust should be the same - she said yes and said she would look into it for me but I havent heard anything from her for 2 weeks. Now I am emailing the whole team as advised for someone to help but I'd like some info in case they are trying to pull a fast one.

 

Can anyone who knows about TSA explain or let me know if the allow/adjust should be the same or if they are meant to be different and why? Is the above TSA correct and I'm worrying about nothing? I've heard so many bad things about Manpower since I started my new job that I'm worrying they may be taking money from me (and others). What rights I have and what I do about it if all this is wrong. Any help/info is appreciated. Thanks.

[Emmzzi]

Write - don't text, call or email - to your Manpower contact and ask for a full copy of the details of the TSA scheme.

 

It's either an error, or an admin fee, I would guess, But you do need the full TSA booklet if they haven;t already given you a copy.

[pepper79]

Thanks for your reply. I was sent the booklet in an email when I first queried it but it still makes no sense to me. How disgusting if that is an admin fee but I'm hoping its an error and I will get the money back. I will see what is said on Monday and will write if I get no joy. Thanks again!

[Emmzzi]

the scheme helps you get more cash in your hand by offsetting travel costs. Why would they go through all that hassle for nothing?

 

I do not think an admin fee is necessarily disgusting!

[ericsbrother]

They do it to save money on their NI contributions so it is not to save you money because they are nice people. Chances are that if you are returning to work then there is no saving to be had by you anyway. That would make an admin fee stick in my craw.

[pepper79]

I find it disgusting because its a fee I have not been told about and when I asked the point of contact she said the amounts should match, not "there's an admin fee you know", she even said she'd look into it. I don't like hidden charges/fees, especially when I specifically ask and I still don't get told about it. An admin fee wouldn't be so bad if I actually got told about it.

 

Yes I am returning to work after a long illness.

[Emmzzi]

at the moment it's a "might" be. Get upset if it is. What does your agreement say about fees?

[pepper79]

There is no mention of any fee or charge in the TSA FAQ handbook. Funnily enough, no one has replied to my email even though they have been quick in the past and I think if there was a fee, it would have come out of my first TSA but it didnt. Stuck on what to do, because if this isn't a "fee" or "mistake" I wont get anywhere writing to Manpower.

[Emmzzi]

Writing. On paper.

[pepper79]

Just a quick update. I finally got a reply from Manpower... that IS an admin fee and they said they take around £5 which is 50% of what I actually "saved" due to TSA but what stings the most is, they advised me to opt-in to the TSA even though I shouldn't be paying any tax at all as I've just done a tax calculator on the Governments site and I'm due a tax refund!! While I will get back the tax I paid, I wont get the admin fees back.

 

Thanks all for your help, really appreciate it!

[Emmzzi]

can you opt out?

[pepper79]

Luckily yes and I have now but wont get my tax refund prob until next year, which is almost £100.

[Derwent]

Just a quick update. I finally got a reply from Manpower... that IS an admin fee and they said they take around £5 which is 50% of what I actually "saved" due to TSA but what stings the most is, they advised me to opt-in to the TSA even though I shouldn't be paying any tax at all as I've just done a tax calculator on the Governments site and I'm due a tax refund!! While I will get back the tax I paid, I wont get the admin fees back.

 

Thanks all for your help, really appreciate it!

 

 

 

Actually, Manpower's TSA scheme takes 10% of whatever your total allowance is as a fee. The higher the figure, the higher their fee.

[ericsbrother]

it only goes to show that you can change things by questioning the norm. Too many people will just go along with it without knwing why it is there and whether it is in their interests.

[User808]

This scheme bugged me from the first manpower employee mentioned it.

It's worth pointing out that manpower advertise jobs with the " *Benefit of TSA scheme (travel subsistence allowance)"

 

My local manpower branch staff didn't know the ins and outs of the scheme. I was referred to head office payroll. The staff there couldn't answer any questions and clearly stated that manpower doesn't make money from running the scheme. That was either a lie or the employee was misinformed.

 

Since I have property income and other little investments each year I file my SATR. I spoke to HMRC about tax relief for employees as Manpower base the TSA scheme entirely on the interpretation of "Temporary place of work". (ref: google "Tax relief for employees gov uk" ) - Noting it is figures Manpower use for the basis of TSA savings scheme.

 

The language used by Manpower staff was that I was 'eligible' to join the TSA scheme as I'm at a temporary place of work . With this I asked my accountant about not joining the scheme and simply claiming the whole tax relief with my SATR. Naturally he was highly uncomfortable with the idea. the question was raised as to how/why do I consider myself to be at a temporary place of work. Which in all honesty I know I'm not as I am considered a 'contractor' to the company I work for with a schedule that is 24 months long with the outlook to be taken on by the company during this contract period. There is no suggestion (or possibility) I'll be sent to work at another site or location.

 

Were I to actually claim all my travel and food allowance with my SATR I'd most certainly raise some eyebrows.

 

Manpower don't actually claim anything from HMRC. They do however manipulate your income with HMRC's approved mileage and food allowance figures (as a mobile employee) to reduce your tax commitment ( a tiny bit more money in pocket now), lower the Employers NI contribution (more money in Manpowers pocket now, less money in your pocket later) and to apply a small fee for running the service (the 'service' is an accounting algorithm built into Manpower's payroll software)

 

The long and short of all this is that Manpower are manipulating the term 'temporary place of work' to justify using HMRC's guideline figures as a basis to meddle with your income to reduce your tax commitment, possibly put more in your pocket while saving plenty themselves in NI contributions. Contributions which are earmarked to benefit you later in life.

 

Although I've opted out of the scheme now I still see on my payslips in the Tax Year to Date box a weekly notice of TSA Savings (which are not applied) of around £80 - Thus suggesting TSA is a built in feature to Manpower's payroll system and an integral part of their business model.

 

This really needs to stop.