Autumn Statement - Umbrella Companies

[Craig at Nixon Williams]

From the Autumn Statement, regarding Umbrella Companies. There may be some interested parties on CUK:

1.251 As part of its reform of the rules for employee benefits and expenses in response to recommendations by the Office of Tax Simplification, the government will stop tax relief from being claimed on reimbursed business expenses when they are paid in conjunction with a salary sacrifice scheme. The government is also concerned at the growing use of overarching contracts of employment by employment intermediaries such as ‘umbrella companies’, which allow some temporary workers to benefit from tax relief for home-to-work travel expenses that is not generally available to other workers.

2.147 Overarching contracts of employment and temporary workers – The government will review the increasing use of overarching contracts of employment by employment intermediaries such as ‘umbrella companies’. These arrangements enable workers to obtain tax relief for home to work travel that would not ordinarily be available. The government will publish a discussion paper shortly to inform possible action at Budget 2015.

[Waldorf]

It looks like HMRC may finally be looking at tackling the abuse from many umbrella companies.

Most users of umbrella's have no idea how the scheme works and what tax abuses are being made in their name.

[LisaContractorUmbrella]

Government has been looking into the various abuses within the industry for quite some time (we have been involved with a number of consultations) so this wasn't unexpected. I have already spoken to one of my contacts at HMRC and we will also be sitting in on the new consultation which will begin in the next few weeks - I hope that this will finally give us the level playing field that we have been campaigning for

[Waldorf]

we will also be sitting in on the new consultation which will begin in the next few weeks

What do you mean you will be sitting in? You and indeed anyone else can contribute to the consultation but lets not pretend that you have a privileged status.

[LisaContractorUmbrella]

What do you mean you will be sitting in? You and indeed anyone else can contribute to the consultation but lets not pretend that you have a privileged status.

Attending? Present? Going along? Giving our opinion? Take your pick

[TheFaQQer]

What do you mean you will be sitting in? You and indeed anyone else can contribute to the consultation but lets not pretend that you have a privileged status.

There's a table, and only some people get invited to sit at the table. Sometimes, there's a party and only some people will get invited to go to the party. If you are going to disagree with anything that HMRC are going to say, then you won't be invited to sit at the table or go to the party. So you should always agree with HMRC, even if you don't know what you want to happen, just to get an invite to the party and a seat at the table.

That's what I've learned from the IPSE forums over the past few weeks.

[slatt]

What do you mean you will be sitting in? You and indeed anyone else can contribute to the consultation but lets not pretend that you have a privileged status.

Everyone is equal, some are just more equal than others...

[tractor]

...

There's a table, and only some people get invited to sit at the table. Sometimes, there's a party and only some people will get invited to go to the party. If you are going to disagree with anything that HMRC are going to say, then you won't be invited to sit at the table or go to the party. So you should always agree with HMRC, even if you don't know what you want to happen, just to get an invite to the party and a seat at the table.

That's what I've learned from the IPSE forums over the past few weeks.

You cannot just get 'in'.

You also have to bring 'gifts'

I know, I was told by someone who can never, ever be wrong. Repeatedly until his head hurt. I think he's having a lie down atm.

[BolshieBastard]

What do you mean you will be sitting in? You and indeed anyone else can contribute to the consultation but lets not pretend that you have a privileged status. .

Oye! Watch how you talk to Lisa. Geddit?

[PerfectStorm]

Would such companies be invited to sit in on any relevant court cases as well?

Ah well - contractors shouldn't worry. If you wanted maximum value for your contracting day you should be going Limited anyway, surely?