Expenses - better going umbrella than self employed?

[LisaContractorUmbrella]

But everyone knows that umbrella companies have a magic piece of paper which means that you can claim anything you want, whether you have spent the money or not, with no receipts and no comeback. So fill your boots.

Or is that fraud I'm thinking of?

Ooohh TheFaqqer you little stirrer you

[TheFaQQer]

Ooohh TheFaqqer you little stirrer you

[AZZIK]

Expenses through an umbrella company are processed in two ways - they are either chargeable to the client in which case they are added to the invoice for the work that you do and are reimbursed in full - or they are processed as a tax benefit. Genuine expenses reduce your tax liability which is why there is a common assumption that they somehow 'increase' your tax home pay; people seem to forget that the cost has to be incurred in the first place.

Well said - a lot of contractors are under this impression (mainly newbies!)