I'm very pissed off that my other thread about the definition of an "employment intermediary" was locked. Yes, I missed one sentence from the Crunch article about off-payroll, but that does not mean it was a troll topic.
The question is "How can a consultancy firm deduct employee T&S as a business expense where an umbrella company cannot?"
Some answers on the other thread were that a consultancy is not in the business of providing labour. But neither is an umbrella company. No end-client engages an umbrella company to provide labour for them. In fact, a consultancy firm is more likely to be in the business of providing labour than an umbrella.
What is stopping an umbrella company from grouping their individual clients into substructures according to service provided and declaring those substructures as "consultancies" in an identical structure to any other consultancy in business?
All individuals would be on payroll of course but the crucial difference is the allowance of consultancy business expenses including T&S.
If we are going to be forced onto a payroll somewhere, the next best thing is to work through a consultancy so as to offset T&S.
The question is "How can a consultancy firm deduct employee T&S as a business expense where an umbrella company cannot?"
Some answers on the other thread were that a consultancy is not in the business of providing labour. But neither is an umbrella company. No end-client engages an umbrella company to provide labour for them. In fact, a consultancy firm is more likely to be in the business of providing labour than an umbrella.
What is stopping an umbrella company from grouping their individual clients into substructures according to service provided and declaring those substructures as "consultancies" in an identical structure to any other consultancy in business?
All individuals would be on payroll of course but the crucial difference is the allowance of consultancy business expenses including T&S.
If we are going to be forced onto a payroll somewhere, the next best thing is to work through a consultancy so as to offset T&S.
Comment