HMRC Compliance Check Worries

[norush]

Right Just managed to get back on site.
I know there was a lack of information so here goes and thanks in advance.

I started a contract through Fusion People in April 2009. HMRC are doing a compliance check for the yr 2009-2010. This was therefore my first yr on this contract. In my line of work there is normally never any anticipation of the work lasting for more than a few days never mind several weeks. Therefore as far as I was concerned this was a temporary contract.
i work through an Umbrella company (Sprite)
When I originally received my original info from sprite it actually lists expenses including Travel.
I have to report to 1 Site in the Derby area for collection of the days work details and then travel to where apropriate. Normally within 10 miles radius but sometimes further afield.
I have been told by HMCR that the 24 mth rule does not apply to me because I work through an agency.
Also been told that the less than 40% of time at this particular site also does not apply as it is through an agency.
Previous to this work (2009-2010) I have not worked through agencies but on a more self employed basis. rarely working at the same site for more than several Days.
i can't understand why they are telling me that the 24 mth rule does not apply and also the 40% rule.
Any help appreciated

[LisaContractorUmbrella]

Norush - do you have something in writing from HMR&C stating that the 24 month rule will not apply because whether you work through an agency or not will make no difference to either that or the 40% rule. Also, if HMR&C have said the 24 month rule does not apply why are your expenses being disallowed? What has your umbrella company had to say about all this?

[ASB]

If they are trying to disallow the travel expenses then they are, in effect, stating that it is a permanent workplace. This is not related to how long one has been there.

They may be trying to push a view that since the umbrella is not attended then each assignment is to a permanent workplace (albeit of a limited duration). I guess the employment contract between the OP and the umbrella may be relevant here.

The comparison I'd use would be I get a job with A PLC in one location for 6 months, then get a job with B PLC for 6 months. Any travel would be ordinary commuting.

I'm not saying that HMRC are right, but I can see what they might be arguing.

[LisaContractorUmbrella]

See what you are saying ASB but the umbrella company should have had an overarching employment contract in place - if they didn't that may be why the investigation has arisen

[norush]

Dont think I have specifically mentioned that I am through an Umbrella company, Just an agency.
They however have my weekly payroll statements that I sent to them to prove my claim for Administration (umbrella company Charges).

They are now asking whether I have claimed Travel expenses over the last 5-6 yrs. If they dissalowed these I would be looking at a bill of around £10.000

As this was my first yr through an agency 2009-2010 I am hoping they could not disallow mileage from previous yrs.
Previously I have worked on a more self employed basis and my work locations have been at various sites. Rarely at the same site for more than several Days.

[northernladuk]

Dont think I have specifically mentioned that I am through an Umbrella company, Just an agency.
.

Yes you have

i work through an Umbrella company (Sprite)

[norush]

No. I mean to HMRC

[adubya]

[norush]

Does working through an umbrella or direct with an agency make any difference?
Sorry I really don't know

[centurian]

As this was my first yr through an agency 2009-2010 I am hoping they could not disallow mileage from previous yrs.

Travel claims are effectively a personal claim - it may be processed by the umbrella/agency/end employer etc. But HMRC can most definately look at (and disallow) any of your mileage claims, regardless of the structures

I have to report to 1 Site in the Derby area for collection of the days work details and then travel to where apropriate. Normally within 10 miles radius but sometimes further afield.
I have been told by HMCR that the 24 mth rule does not apply to me because I work through an agency.

Okay, you may find that travel to the main site is not allowed, but travel thereafter should definately be allowed - both under the letter and spirit of the rules. That's the whole definition of a temporary workplace.

Previous to this work (2009-2010) I have not worked through agencies but on a more self employed basis. rarely working at the same site for more than several Days.

Again, this seems quite clear that you are safe in this respect. By self-employed, do you mean Ltd or sole trader.


In short, just because HMRC start jumping up and down, it does not mean that they are correct in everything. But you may need to argue the toss with them quite vigourously until they get the point.