LTD using PAYE vs Umberalla PAYE

[malvolio]

I'm not about to repeat Simon Dolan's highly informed and professional explanation at http://forums.contractoruk.com/thread7487.html which explains it far better than I can.

As regards your customised calculations, we're not interested unless they were done by someone who was not trying to sell you an umbrella service and who knows all your circumstances, which I don't. But if they have saved 7% legally and on the same basis as MyCo has to operate, then they need to advertise a bit better.

Then again, I have my own company, I don't ever want to use an umbrella, and it's your tax bill at risk anyway, not mine. Your advisors are wrong and are not comparing like-for-like, otherwise you would get either the same return or a worse one.

Ad I'm assuming you are talking real umbrella, not some dumbass composite scheme pretending to be one.

[gravesendboy]

expenses incurred

A couple well know umbrella provider tells me that have a dispensation which will allow anyone working through their umbrella that they are entitled to x amount if they are out of the house for more than 5 hours or for more than 10 hours ( journey to work and back counts towards the make up of the hours..
This cannot be receipted .. are you telling me that that contractors cannot do this even if their dispensation from the HMRC tells me that they can ?

[Lucifer Box]

A couple well know umbrella provider tells me that have a dispensation which will allow anyone working through their umbrella that they are entitled to x amount if they are out of the house for more than 5 hours or for more than 10 hours ( journey to work and back counts towards the make up of the hours..
This cannot be receipted .. are you telling me that that contractors cannot do this even if their dispensation from the HMRC tells me that they can ?

They are lying to make their take home figures look better. Name and shame the umbrella that is telling you that you can legally claim unreceipted expenses above and beyond the £5 PIEs for an overnight stay away.

Only a fool would believe that you could claim for an expense that has not been incurred. Do you seriously think the UK taxpayer will recompense you just for the priviledge of being out your house for 5 hours? But it's your money and your risk. You will end up with the bill for unpaid tax plus interest and penalties, not your umbrella.

[LisaContractorUmbrella]

A couple well know umbrella provider tells me that have a dispensation which will allow anyone working through their umbrella that they are entitled to x amount if they are out of the house for more than 5 hours or for more than 10 hours ( journey to work and back counts towards the make up of the hours..
This cannot be receipted .. are you telling me that that contractors cannot do this even if their dispensation from the HMRC tells me that they can ?

All umbrella companies have a dispensation and it is just something which enables their accounting processes to be streamlined. Normally expenses have to be entered on a form called a P11D but if an umbrella company were to do this for each of their clients they would have time to do nothing else. Therefore they approach the Inland Revenue with a list of the expenses that they think their clients will be likely to claim and the IR issue a dispensation which means that they can process these expense claims without having to complete a P11D. It does not mean that you can claim more expenses through one company than another and it also does not mean that you would not have to provide receipts for your expenses should the IR request them.

[gravesendboy]

Expenses?

They are proper umbrella companies and not composites
I checked with the Revenue to verify their assertions as in theory you could have unreceipted tax free claims of 6000 if you are out of the home for more than 10 hours ( roughly 25 pounds a day ).. agreed that this is completely unfair for someone running a limited like myself but this would explain part of the 7%
The Revenue as usual would not discuss specifice cases but confirmed that this would be something that they would allow

[Lucifer Box]

You've lost me now and I expect you did the person you spoke to at HMRC.

They agreed it is "completely unfair" but that they would allow you to claim £6000 pa in unreceipted expenses? Either you or they have got completely the wrong end of the stick.

Try it and see what happens. It's your money and your risk.

[gravesendboy]

Unreceipted claims

There is a well know umbrella company which displays their dispensation on their website and hopefully this will explain where the 6k comes from
This is not the company who quoted me but as I understand it , all the big umbrella players have similar dispensations
If you leave your home before 7.30 and get back after 6.30 . you are entitled to unreceipted tax free money of anything between 20 - 25 pounds a day
Perhaps one of you could ring the tax office and explain with more clarity and see what response you get
In addition seeing as Simon Dolan's 'gospel' gets a fair amount of publicity , perhaps he can contribute to this

[gravesendboy]

To clear up

my fault for not clarifying properly .. I though it was unfiar not the tax office

[simondolan]

There is a well know umbrella company which displays their dispensation on their website and hopefully this will explain where the 6k comes from
This is not the company who quoted me but as I understand it , all the big umbrella players have similar dispensations
If you leave your home before 7.30 and get back after 6.30 . you are entitled to unreceipted tax free money of anything between 20 - 25 pounds a day
Perhaps one of you could ring the tax office and explain with more clarity and see what response you get
In addition seeing as Simon Dolan's 'gospel' gets a fair amount of publicity , perhaps he can contribute to this

Happy to, but not sure how much more I can add that hasn't already been covered?

[gravesendboy]

Possible?

Perhaps Simon could say a simple yes or no as to whether the £ 6ktax free allowance for being out of the home for more than 10 hours is legal or not ?