+ Reply to Thread
Page 1 of 2 1 2 LastLast
Posts 1 to 10 of 15
  1. #1

    Nervous Newbie


    Join Date
    May 2013
    Posts
    1
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default Umbrella company and T&S expenses

    As a long term lurker but not poster, I thought I fairly clued up on the new rules.

    Work through umbrella company = no T&S expenses before tax.

    I actually thought it was fairly cut and dried.

    i've always been limited so maybe I havent paid as much attention to the subtleties as I thought I had but....... the developers on site at my current project are pretty much all through a brolly. They are all being allowed T&C to be paid before tax.

    Seemingly the contractor sends the expenses in to the brolly who deduct it as a cost of employment before paying them the salary.

    Surely this is just bloody semantics and hector may well come calling with the KY asking them to touch their toes.

    Before I make myself look like an idiot and try to convince them otherwise - is the above true? Is there any specific link to where I can direct them if they refuse to believe me.

    Its no skin of my nose but we have a couple of junior developers (who probably shouldn;t be contractors anyway but that's another story) who are being swayed by the long in the tooth boys and frankly if the more experienced guys get shafted its on them but I feel sort of protective towards the kids.

  2. #2

    Still gathering requirements...

    Neil@Intouch's Avatar
    Join Date
    Dec 2016
    Location
    Bournemouth
    Posts
    53
    Thanks (Given)
    0
    Thanks (Received)
    2
    Likes (Given)
    6
    Likes (Received)
    8

    Default

    This link should be useful, when discussing with your colleagues (Contractors' Questions: Does IR35 or using an umbrella affect T&S expenses? :: Contractor UK).

  3. #3

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    31,419
    Thanks (Given)
    124
    Thanks (Received)
    1047
    Likes (Given)
    1552
    Likes (Received)
    5191

    Default

    There are plenty of clear guides on the web and from what I see on a few of the Umbrellas they have pretty clear guidelines on their own pages. Here is one from CUK you might send them. Does that cover your point?

    Why it's all change for umbrella companies (and umbrella contractors) from April :: Contractor UK

    I think the problem might be more who they are using. Are they using some off shore scheme pretending to be an Umbrella or maybe they are using one of these that 'sponsor' them? If so their expenses are the very least of their problems.

    I do find it hard to believe that if they are with any reasonable outfit that is all above board the brolly will be letting them do anything bad.

    P.S We do have an Umbrella section you know. Need to improve the quality of your lurking
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  4. #4

    More time posting than coding

    lucycontractorumbrella's Avatar
    Join Date
    Feb 2013
    Location
    Colchester, Essex
    Posts
    266
    Thanks (Given)
    30
    Thanks (Received)
    22
    Likes (Given)
    188
    Likes (Received)
    60

    Default

    In simplistic terms if they are under a compliant brolly, then expenses cannot be processed at source. If they are NOT under Supervision, Direction and Control then they would have to process these via self-assessment at the end of the financial year. This may help explain, so please feel free to send this link on to them
    Just watching what I say

    Connect with me on LinkedIn

    Follow us on Twitter.

  5. #5

    Nervous Newbie


    Join Date
    Feb 2017
    Posts
    11
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    1

    Default

    Quote Originally Posted by lucycontractorumbrella View Post
    In simplistic terms if they are under a compliant brolly, then expenses cannot be processed at source. If they are NOT under Supervision, Direction and Control then they would have to process these via self-assessment at the end of the financial year. This may help explain, so please feel free to send this link on to them
    Can I add some questions here. Lets assume it's not under SDC. I have asked an Umbrella company about what expenses I can claim and how that would work. They have been somewhat shy with sharing absolute information to me. But they have mentioned that I will under my new contract role be able to:
    - Claim public transport expenses to and from my new office
    - Claim daily subsistences costs like food and drinks
    - Claim expenses on the cost of buying a new phone for my work. And I would receive 20%/40% back in the form of a tax refund (dependant on tax bracket I presume).

    I've read plenty, the links in this thread and other + Googling. But still not sure if what they have mentioned is actually correct. Can someone please enlighten me.

    Many thanks,
    Penglund

  6. #6
    eek
    eek is online now

    bored now

    eek's Avatar
    Join Date
    Jun 2010
    Location
    😂
    Posts
    21,243
    Thanks (Given)
    208
    Thanks (Received)
    1000
    Likes (Given)
    925
    Likes (Received)
    3068

    Default

    Quote Originally Posted by polagon View Post
    Can I add some questions here. Lets assume it's not under SDC. I have asked an Umbrella company about what expenses I can claim and how that would work. They have been somewhat shy with sharing absolute information to me. But they have mentioned that I will under my new contract role be able to:
    - Claim public transport expenses to and from my new office
    - Claim daily subsistences costs like food and drinks
    - Claim expenses on the cost of buying a new phone for my work. And I would receive 20%/40% back in the form of a tax refund (dependant on tax bracket I presume).

    I've read plenty, the links in this thread and other + Googling. But still not sure if what they have mentioned is actually correct. Can someone please enlighten me.

    Many thanks,
    Penglund
    That doesn't sound right. What's the name of your umbrella?
    merely at clientco for the entertainment

  7. #7

    Nervous Newbie


    Join Date
    Feb 2017
    Posts
    11
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    1

    Default

    Quote Originally Posted by eek View Post
    That doesn't sound right. What's the name of your umbrella?
    Parasol.

  8. #8

    Still gathering requirements...


    Join Date
    Mar 2007
    Posts
    98
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    2

    Default

    This confirms the approach from agent last week pushing me towards parasol.

  9. #9
    eek
    eek is online now

    bored now

    eek's Avatar
    Join Date
    Jun 2010
    Location
    😂
    Posts
    21,243
    Thanks (Given)
    208
    Thanks (Received)
    1000
    Likes (Given)
    925
    Likes (Received)
    3068

    Default

    Quote Originally Posted by Anonimouse View Post
    This confirms the approach from agent last week pushing me towards parasol.
    That will be due to size of kickbacks from Parasol to Agent....
    merely at clientco for the entertainment

  10. #10

    Still gathering requirements...


    Join Date
    Mar 2007
    Posts
    98
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    2

    Default

    I have worked for agent before, but they have never pushed parasol, but they were pushing expenses on PS role.

+ Reply to Thread
Page 1 of 2 1 2 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.