Umbrella income and Self Assessment

[Carling777]

I am filling in my Self Assessment and would like some advice on how to include the income from an umbrella Co or rather 2, and what I can claim as an offset. I want to claim against the charge for the Umbrella Co as an expense also I want to claim my expenses whilst working for these Co's as they did not incorporate these in the PAYE calculation. I am confused where to enter these figures and I do not have the Tax ref details for the Umbrella Co's

[bikeman]

My understanding, and I am happy to be corrected, is that the umbrella company deducts it's fees prior to assessing your income for tax therefore it is effectively already a tax deductible expense.

Since 6 april 2016, unless outside of IR35 (doubtful if you are working via an umbrella co) you are viewed as a perm employee at your normal place of work so none of your expenses (travel, subsistence, hotels etc) are tax deductible and you shouldn't include them on your tax return.

I'd love to be wrong in this respect.

[lucyclarityumbrella]

My understanding, and I am happy to be corrected, is that the umbrella company deducts it's fees prior to assessing your income for tax therefore it is effectively already a tax deductible expense.

Since 6 april 2016, unless outside of IR35 (doubtful if you are working via an umbrella co) you are viewed as a perm employee at your normal place of work so none of your expenses (travel, subsistence, hotels etc) are tax deductible and you shouldn't include them on your tax return.

I'd love to be wrong in this respect.

Correct with the margin - it should come out before your taxable salary so it is deemed to be paid by the contract rate and not the employee, so as such is not claimable.

As for the latter statement - I have had confirmation from HMRC that states, if "inside IR35" then it is highly unlikely that a contractor will not be deemed as under SDC = No Expenses - sorry if I am the bearer of bad news