• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

"offseting the cost of daily lunch and commute against tax to be closed in Budget"

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    "offseting the cost of daily lunch and commute against tax to be closed in Budget"

    Loophole that lets freelance workers offset the cost of lunch and commute against tax to be closed in Budget | This is Money

    Reading this they seem to keep referring to Umbrella's rather than Ltds?

    #2
    Originally posted by TechJinx View Post
    Which is fair enough from their perspective: umbrella users are employees and not in business so why should they get paid business expenses?

    And yes, I do know why, but then again I'm not a journalist.
    Blog? What blog...?

    Comment


      #3
      Originally posted by TechJinx View Post
      HMRC know this would be difficult to apply to Ltd employees generally.

      FLCs however...

      Comment


        #4
        These things also talk about specific amounts which means they seem to be referring to scale rates which umbrellas have dispensation to use.

        Comment


          #5
          Guess umbrellas are about to become an even worse deal.
          ⭐️ Gold Star Contractor

          Comment


            #6
            stuff like this i have to wonder why?? are the amounts involved that significant?

            feels more like a measure to grind people down than anything
            Politicians are wonderfull people, as long as they stay away from things they don't understand, like working for a living!

            Comment


              #7
              Originally posted by portseven View Post
              stuff like this i have to wonder why?? are the amounts involved that significant?

              feels more like a measure to grind people down than anything
              Because it's not "fair".

              To make it "fair" the "loophole" needs closing - rather than encourage a flexible workforce and extend similar tax relief to temporary workers on FTE and zero-hour PAYE.

              As for Ltd's, currently such expenses are deductible before IR35 is applied. Expect that "loophole" to be challenged next if enough jump ship from Umbrella to Ltd.

              Comment


                #8
                There's not a whole lot that's factually correct in that article:

                1. There was a 'discussion' in December which means that, at that point, HMRC had made no decision with regard to tax relief on T&S.
                2. There will be a 'consultation' but, as far as I know, no dates are in place so I would be surprised if there is an announcement next month.
                3. If anything does happen then changes will not come into force until April 2016
                4. Much of the controversy surrounding expenses comes from the companies still operating 'pay day by pay day' schemes whereby low paid individuals 'sacrifice' part of their pay which is then processed as an expense regardless of whether a cost has been incurred. This is very different from professional contractors who have no permanent place of work as they are constantly moving from contract to contract.
                5. An over-arching contract is a recognised concept in law that provides continuity of employment for contractors whilst they are working on assignment but also in the gaps between assignments.
                6. "Recruitment agencies offer to run umbrella companies for a group of workers in return for a fee" -
                Connect with me on LinkedIn

                Follow us on Twitter.

                ContractorUK Best Forum Advisor 2015

                Comment


                  #9
                  Originally posted by Contreras View Post
                  Because it's not "fair".

                  To make it "fair" the "loophole" needs closing - rather than encourage a flexible workforce and extend similar tax relief to temporary workers on FTE and zero-hour PAYE.

                  As for Ltd's, currently such expenses are deductible before IR35 is applied. Expect that "loophole" to be challenged next if enough jump ship from Umbrella to Ltd.
                  This.
                  I couldn't give two fornicators! Yes, really!

                  Comment

                  Working...
                  X