No Longer Limited

**TheFaQQer** · 19 November 2007, 17:25

AFAIK the only way that an umbrella can legitimately pay you more than another umbrella is by having a lower monthly charge. They are subject to the same HMRC rules as anywone else, so anything else strikes me as dodgy.

**Gonzo** · 19 November 2007, 17:36

Originally posted by TheFaQQer View Post

AFAIK the only way that an umbrella can legitimately pay you more than another umbrella is by having a lower monthly charge. They are subject to the same HMRC rules as anywone else, so anything else strikes me as dodgy.

But they do have a dispensation!

This line is taken directly from their website "To minimise your tax payments and maximise your returns, we have obtained HMRC dispensation enabling you to claim mileage and subsistence and offset business-related expenses incurred during the course of your contract."

I have to agree with TheFaQQer on this, the only variable is their fee. The same rules apply on expenses to everyone regardless of how they are structured. The "we have a dispensation" line is irrelevent for the contractor.

The insurances that they include may, or may not, prove to be better value than other umbrellas, but I am not going to sit down to work that out.

**beaker** · 19 November 2007, 17:40

Their fees aren't the lowest, which suggests they are doing "something" with the money before it is paid out to the contractor...

**TheFaQQer** · 19 November 2007, 17:42

Originally posted by Gonzo View Post

But they do have a dispensation!

This line is taken directly from their website "To minimise your tax payments and maximise your returns, we have obtained HMRC dispensation enabling you to claim mileage and subsistence and offset business-related expenses incurred during the course of your contract."

I have to agree with TheFaQQer on this, the only variable is their fee. The same rules apply on expenses to everyone regardless of how they are structured. The "we have a dispensation" line is irrelevent for the contractor.

The insurances that they include may, or may not, prove to be better value than other umbrellas, but I am not going to sit down to work that out.

Please don't start me on dispensations again - at least not without a "Sarcasm" smilie.

This line is taken directly from their website "To minimise your tax payments and maximise your returns, we have obtained HMRC dispensation enabling you to claim mileage and subsistence and offset business-related expenses incurred during the course of your contract."

There really should be a law against putting things like this on their propaganda, since they are blatantly implying that having a dispensation makes you some how possible to claim expenses.

**Gonzo** · 19 November 2007, 18:14

Originally posted by beaker View Post

Their fees aren't the lowest, which suggests they are doing "something" with the money before it is paid out to the contractor...

I would suspect that there are some assumptions about the expenses that will be claimed when calculating the return from using them. That needs checking further.

There is no alchemy that they can perform to produce a higher return that another umbrella cannot.

I should say, I am not biased in favour of one umbrella over another. I wouldn't use any of them.

**Moscow Mule** · 19 November 2007, 18:22

Originally posted by beaker View Post

How do they pay a higher after-tax rate than other umbrellas?

Are they dodgy?

Answer - they don't. Keep your receipts, only claim for what you spend. Income calculators are balls.

Unsolicited answer - as umbrellas go, they were always ok with me. They used to royally screw up every once in a while, but I forgave them as I was invoicing in Euros and it wasn't a big deal.

What you are paying for is the factoring - if you're outside IR35 (and possibly inside but I never was so I don't know) they pay you as soon as they get your timesheet, that's cash in the bank three days after month end.

They will try to charge you 5% for this - don't settle for anything above 3.5%.

**malvolio** · 19 November 2007, 18:29

Originally posted by Gonzo View Post

This line is taken directly from their website "To minimise your tax payments and maximise your returns, we have obtained HMRC dispensation enabling you to claim mileage and subsistence and offset business-related expenses incurred during the course of your contract."

I'm half-minded to report that to Trading Standards, since it is blatantly misleading, quite apart from being factually wrong, and an incitement to illegal activities. Think I should?

**SueEllen** · 19 November 2007, 18:34

Originally posted by malvolio View Post

I'm half-minded to report that to Trading Standards, since it is blatantly misleading, quite apart from being factually wrong, and an incitement to illegal activities. Think I should?

Yes.

You may need to be a bit more organised and get other PCG members to complain. Most Trading Standards departments need more than one complaint before doing something.

**TheFaQQer** · 19 November 2007, 18:37

Can the PCG not make more formal representations to Trading Standards and / or HMRC about things like this?

No Longer Limited