Everything you ever wanted to know about umbrella companies but were afraid to ask...

[gezzagregz]

Hi i found it difficult trying to choose the right umbrella.

i have always said the proof is in the pudding, and dont take anyones word that a certain umbrella is best.

look at this http://www.thissiteisnotworthvisiting .com/

also, if you want a general contractors guide, this may help some of you:

http://www.danbro.co.uk/pdf/Danbro_C...tors_guide.pdf

[TheFaQQer]

SJD also do a contractors guide, which is good.

[malvolio]

Originally Posted by TheFaQQer

SJD also do a contractors guide, which is good.

As do CUK, if you look over on the right. The most authoratative and unbiased one though is http://www.pcg.org.uk/cms/index.php?...759&Itemid=321, which was written by the experts.

[bid1]

Can somebody help me here....... I am thinking of working in Saudi Arabia for an English based agency and will get paid into an English a/c. I have an NT code from revenue. Does IR35 affect me? I was thinking of getting an English umbrella company. What can I claim for and what tax implications do I have. Do I need to pay NI?
Tks

[multiuk]

So it seems that unless you are claiming expenses, then it is not worth joining an umbrella company?

And that you must pay the same amount of tax as you would direct with the agency?

Is this how umbrellas work?

Thanks

[Cowboy Bob]

Originally Posted by multiuk

So it seems that unless you are claiming expenses, then it is not worth joining an umbrella company?

The amount of expenses you can claim through an umbrella are exactly the same as those you can claim if you work via any other vehicle. If the umbrella tell you anything else, they are lying. Most will use their dispensation as an advertising point - you need to be very aware that the dispensation applies to them, not to you, and that all it means is that they don't have to record the expenses on their P11D form, it is not free money from Gordon Brown (as if he'd ever give money away) - this is very misleading, but nearly all of them try it on.

[ASB]

Originally Posted by Cowboy Bob

The amount of expenses you can claim through an umbrella are exactly the same as those you can claim if you work via any other vehicle. If the umbrella tell you anything else, they are lying. Most will use their dispensation as an advertising point - you need to be very aware that the dispensation applies to them, not to you, and that all it means is that they don't have to record the expenses on their P11D form, it is not free money from Gordon Brown (as if he'd ever give money away) - this is very misleading, but nearly all of them try it on.

As it happens a mate has just joined an umbrella for some agency work he is doing. He asked me about this and they were absolutely crystal about the 5 quid over night allowance etc. They said meals paid for at cost, up to x. So they are not all bad.

[TheFaQQer]

Originally Posted by ASB

As it happens a mate has just joined an umbrella for some agency work he is doing. He asked me about this and they were absolutely crystal about the 5 quid over night allowance etc. They said meals paid for at cost, up to x. So they are not all bad.

£5 is allowed if you are working away from home and staying overnight. It's more if you are staying overseas.

Anything else has to be as incurred, and in line with HMRC guidelines / legislation.

[ASB]

Originally Posted by TheFaQQer

£5 is allowed if you are working away from home and staying overnight. It's more if you are staying overseas.

Anything else has to be as incurred, and in line with HMRC guidelines / legislation.

£10 in those circumstances.

My point was that whilst in general we repeat ad nauseum "you've got to spend it - this is what the brolly doesn't say" this particulalr brolly also take that line.

[TheFaQQer]

Originally Posted by ASB

£10 in those circumstances.

My point was that whilst in general we repeat ad nauseum "you've got to spend it - this is what the brolly doesn't say" this particulalr brolly also take that line.

Indeed - name and praise!!