What to do if you are currently with a Composite or Managed Company.

[Xtrain]

We (Parasol) on the other hand are saying we will be able to allow genuine business expenses. We (and ContractorUmbrella) have never sold our service based on "no receipts" needed and "claim what you like".

Our view is not based on simple hoping, Parasol has a specific business model that beneath the bonnet is quite different to other PAYE operators.

Happy Christmas!

I think the crux is that the PBR is not trying to get at "genuine business expenses" but imho they will not allow travel to work and therefore subsistence to your employees normal place of work (i.e. the end client site).

So come April 07 everyone will have to decide between your type of offering and the chance of not having these expenses or a ltd company which defo allows them plus the possibility of divvies if outside of IR35. I really can't see why anyone would choose the first option.

I have used both Parasol and OrangeGenie in the past and tbh honest you both were the same. I was employed by both and you both deducted (extremly large) paye and ni payments from me. The expenses policies are similar and my net return in % terms was virtually the same and this is SIGNIFICANTLY less than what I get currently with my own ltd. So imo under the bonnet you are exactly the same as all other PAYE brollies with the exception you've got a massive debt due to your MBO!!!

[freshblue]

So come April 07 everyone will have to decide between your type of offering and the chance of not having these expenses or a ltd company which defo allows them plus the possibility of divvies if outside of IR35. I really can't see why anyone would choose the first option.

I think she is saying that Parasol will continue to allow expense claims as they are not part of the PBR. That is how I read the email I got from them.

[Ardesco]

I wish the Gov would get smart. The average contractor might have revenue of say £60k, and hence pay about £15k tax. If he is forced to go permie, he will prob earn, say £40k, and pay about £11k tax.

Am I being stoopid here? i.e. does the Gov want less tax by forcing us all to become permies?!

Then again, I've always said that only the thickest and least educated people work for government, hence that explains their thinking...

One other thing to remember is that this government thinks that evrybody should be in a permie job. I remember just before the last election listening to some liebour MP ranting on the radio about one man band LTD Co's and how they were abusing the tax system and they should all be shut down and forced to pay lots of extra tax. I remember thinking at the time, you muppet we all have a paper trail for every bit of money going into our company so we can't be dodgy (or if we are it is very easy to catch us). Go look at plumbers, builders and gas installer who work cash in hand and invariably have thier company name as thier name (e.g. joe bloggs plumbing). Very easy for them to get a cheque made payable to joe blos and put it in personal account raher than co account, or just take cash and only declare half of it, they rarely give out recepits.