Legal Expenses : Claiming Back

[LisaContractorUmbrella]

The umbrella company's dispensation means that they do not have to file P11d's for the items covered; they can still process legitimate expenses that are not on the dispensation, they would just have to file p11d at year end. IMHO this would not be classed as a legitimate business expense.

[Beefy198]

I, along with a couple of other posters, and confused about why you had the contract reviewed? Working under the brolly you wouldn't have to worry about IR35, so what was the review for?

Funnily enough, I once had a mate who got shirty because his umbrella wouldn't allow him to claim 'expenses' for attending interviews....

[MPwannadecentincome]

IMHO this would not be classed as a legitimate business expense.

This is what puzzles me...

Big co uses a member of staff to go to a lawyer to get a potential client contract review done. Lawyer probably invoices Big co for work. Invoice is offset against tax as a legit business expense (am I wrong?).

Brolly employee goes to a lawyer to get a potential client (for the brolly!) contract review done. Employee pays lawyer directly. This is not a legit business expense?

Why o why o why o why are small players continually disadvantaged against bigger ones?

I look forward to someone telling me how I'm wrong - or, is it different for ltd co?

[LisaContractorUmbrella]

This is what puzzles me...

Big co uses a member of staff to go to a lawyer to get a potential client contract review done. Lawyer probably invoices Big co for work. Invoice is offset against tax as a legit business expense (am I wrong?).

Brolly employee goes to a lawyer to get a potential client (for the brolly!) contract review done. Employee pays lawyer directly. This is not a legit business expense?

Why o why o why o why are small players continually disadvantaged against bigger ones?

I look forward to someone telling me how I'm wrong - or, is it different for ltd co?

The invoice from the lawyer would be recorded on the company's purchase ledger as a cost of business it wouldn't be processed as an expense. As an employee of an umbrella company is not operating a business this is not an option. Hope that make sense

[MPwannadecentincome]

The invoice from the lawyer would be recorded on the company's purchase ledger as a cost of business it wouldn't be processed as an expense. As an employee of an umbrella company is not operating a business this is not an option. Hope that make sense

In which case the lawyer should be able to invoice the brolly so no expense is involved - the brolly deducts equivalent cost from employee as a 'fee'?

[MPwannadecentincome]

I, along with a couple of other posters, and confused about why you had the contract reviewed? Working under the brolly you wouldn't have to worry about IR35, so what was the review for?

contracts are not just about IR35 - they are about protecting both parties - for instance, I am negotiating with a client direct in the US who have all sorts of bulltulip clauses - damn sight easier to sort that out with professional help though a shock to me that I can't claim it as an expense as I'm still brollied - must get off my a*** and go ltd.

[LisaContractorUmbrella]

In which case the lawyer should be able to invoice the brolly so no expense is involved - the brolly deducts equivalent cost from employee as a 'fee'?

But in order to recoup the cost the brolly would need to deduct the 'fee' from the net rather than the gross which would give no benefit to the contractor. To take it from the gross would mean that it was being processed as an expense which it isn't - for the contractor or a big corporation.

[MPwannadecentincome]

But in order to recoup the cost the brolly would need to deduct the 'fee' from the net rather than the gross which would give no benefit to the contractor. To take it from the gross would mean that it was being processed as an expense which it isn't - for the contractor or a big corporation.

I thought brolly fees were always deducted from gross - that's what my brolly does?

[LisaContractorUmbrella]

I thought brolly fees were always deducted from gross - that's what my brolly does?

Your umbrella company's fees are a legitimate business expense though - them passing on the cost of a lawyer, even disguised as a fee, would not be.

[Beefy198]

contracts are not just about IR35 - they are about protecting both parties - for instance, I am negotiating with a client direct in the US who have all sorts of bulltulip clauses - damn sight easier to sort that out with professional help though a shock to me that I can't claim it as an expense as I'm still brollied - must get off my a*** and go ltd.

But the contract will be between the client/agency and the umbrella company. He'd probably just be a named contractor on it.