Parasol Expenses situation from April?

[stevie boy]

I asked Parasol if I would still be able to claim expenses from April onwards and this was the reply...

"The new legislation which is due to come in from next month does not affect Parasol or our Flexible Employees since we are not an Umbrella company or a Managed Services Company."

Just wanted to know if this was correct?

Cheers

[pisces]

Heh, they are an unbrella company

[stevie boy]

Heh, they are an unbrella company

I always thought they were an umbrella company too

[pickle]

I always thought they were an umbrella company too

Bit of an odd choice of company name if they are not...

[stevie boy]

an update...

"the new legislation which is due to come in next month as per the pre Budget speech in December, has no implications for our Flexible Employees since Parasol Ltd is not a Managed Service company (who pay a minimum wage and the remainder in dividends). This payroll solution will be illegal from April as it is considered tax evasion by HMRC.
Parasol are your employer and therefore you will be able to continue to claim expenses through Parasol.

Other 'umbrella companies' who offer composite status will be affected and some have already had their Dispensation with HMRC removed."

[PAG]

In other words, you will be treated like FT employee worse off where expenses can claimed but you will also have to pay Employers NI.

[malvolio]

an update...

"the new legislation which is due to come in next month as per the pre Budget speech in December, has no implications for our Flexible Employees since Parasol Ltd is not a Managed Service company (who pay a minimum wage and the remainder in dividends). This payroll solution will be illegal from April as it is considered tax evasion by HMRC.
Parasol are your employer and therefore you will be able to continue to claim expenses through Parasol.

Other 'umbrella companies' who offer composite status will be affected and some have already had their Dispensation with HMRC removed."

Errm, bullocks...

Regardless of what they call themselves, they will only be allowed to pay the same expenses as any other employer, which means no travel expenses and possibly no accommodation expenses either, unless they have a magic way to defne your normal place of work as being anywhere other than where you go and sit every day to earn your crust. An employee cannot claim expenses for travel to and from work, nor living costs, for their normal place of work, only if they are sent elsewhere for a temporary assignment (or to be precise, they can but they then pay tax on it as if it were normal salary).

And what dispensation, may I ask? There aren't any that are relevant to the contractors on thier books.

[MarillionFan]

I work at home. Any time I leave it I claim.

Plus. I claim for my home office.

Plus. Lunch if I make it in the kitchen. I make a receipt out to MF Sandwiches.

and i charge for toilet paper.

[malvolio]

I work at home. Any time I leave it I claim.

Plus. I claim for my home office.

Plus. Lunch if I make it in the kitchen. I make a receipt out to MF Sandwiches.

and i charge for toilet paper.

Oh yes, completely right to do so. But if you work through an umbrella or any otherr form of MSC, you will either pay tax on all such expenses as a BIK fron April 6th, or you don't claim them. Well it's only fair...

[Parasol_Service]

Errm, bullocks...

Regardless of what they call themselves, they will only be allowed to pay the same expenses as any other employer, which means no travel expenses and possibly no accommodation expenses either, unless they have a magic way to defne your normal place of work as being anywhere other than where you go and sit every day to earn your crust. An employee cannot claim expenses for travel to and from work, nor living costs, for their normal place of work, only if they are sent elsewhere for a temporary assignment (or to be precise, they can but they then pay tax on it as if it were normal salary).

And what dispensation, may I ask? There aren't any that are relevant to the contractors on thier books.

Hi,

We base our position in that as an employee you are entitled to claim business expenses as you are a)not a "worker" b)not part of the MSC definition and other related matters. The simple analogy would be as an employee you are not able to claim expenses should your employer send you to a project meeting in Birmingham from your home in say Croydon. Clearly you would claim those expenses and be allowed to do so, and yes clearly we have a "magic" solution but one which in real terms is normal practice for real employers but more difficult for those where status is not clear.

We don't like the phrase "umbrella" but of course it is well understood in the industry but has negative connotations and yes our name is a HUGE tip of the hat to the past.

We offer contractors a choice, professional employment, genuine business expenses with no selling of dispensations, training, career development and more. We don't play at being an "employer" by making strange deductions for sickness or holiday and we provide some very specific features that clearly define our unique status.

Hope this helps
Lesley