Umbrella companies still allowing expenses Post 6th April 2016

[lucyclarityumbrella]

So I thought it worthwhile writing a very short post with regards to expenses and umbrella companies post April.

I have received numerous phone calls over the last few weeks whereby contractors are telling me that they are receiving a better take home through other umbrella companies and will not consider utilising CU based on this. Upon further investigation it appears, due to errors made in writing the T&S legislation, some companies are using this as an opportunity to continue processing expenses for tax relief purposes.

Let's be clear then, we all understand what HMRC's intentions were when writing the legislation, and due to a hiccup on their part, we shouldn't rush to take it as an all clear to start processing expenses again. They are rewriting to pull the legislation back inline with what was initally intended to do, so if you are considering utilising a company still processing be aware that this may not be the end of things!

[missinggreenfields]

Maybe they are using the Qdos insurance as well to allow them to pay travel expenses?

[northernladuk]

Well that means there is going to be a number of very pissed off contractors having to pay money back to their umbrella. Time to get a nice incentive package together and ring them again after the truth has hit them Easy customers.

[lucyclarityumbrella]

So should I go limited or with an umbrella?

It depends on your situation tbh. If you want to discuss the umbrella option, then please give me a shout and I am more than happy to talk you through it

[northernladuk]

So should I go limited or with an umbrella?

If you have to ask that question I'd say Umbrella.

[mudskipper]

So should I go limited or with an umbrella?

So are you an accountant or a newbie contractor?

[northernladuk]

So are you an accountant or a newbie contractor?

He will be back with an answer as soon as he's signed up another sockie up but before he embarrasses himself and his company and gets banned again.

[Boney M]

Surely if they have made a mess up of the legislation then it wont apply.

[NotAllThere]

Surely if they have made a mess up of the legislation then it wont apply.

They'll make it retrospectively applicable.

[eek]

They'll make it retrospectively applicable.

+1. The intent was explicitly specified so as far as HMRC are concerned it's just a tidying up exercise...

If there is an umbrella with an axe to grind and a spare million quid they may try to argue the point. I have suspicions (which Lisa would have confirmed) that no umbrella would be that brave. They will just wait a while, blame HMRC and ideally recover the money from future payments...