Umbrella company recommendations

**freshblue** · 20 February 2006, 12:36

Originally posted by jc333999

Hi,

Looking for opinions please.

Have been with a well known Umbrella for about a year, permanent before then. When I joined this well known company they gave the hard sell about expenses this, dispensation that, and assured me in no uncertain terms that receipts were not required. So I havent been keeping them.

Now it seems the wool has been pulled over my eyes. I've done a bit of research and it seems that this non-receiptable expenses lark is a load of tripe - and that you must keep them incase the IR investigate. Consequently I'm bricking it. I can keep receipts from now on, but what if the IR investigate?!! If I change Umbrella now to someone like Parasol will that set off alarms at the IR, and would I be scrutinised? Should I stay put and sit it out until the end of the tax year? What methods, and how far back would the IR use to investigate if they dont like the expense claims?

Anyone got any Umbrella recommendations?

thanks!

I will try and be polite before you get caned on here but the expense "scam" you refer to is well known and should be avoided. Technically HMRC can go back 6 years... Have you been completing self assessment?

As for timing... start keeping receipts now and being "honest" and that will be a good start.

Parasol are good (may be too honest for you?) and Contractor Umbrella get good reps.

**jc333999** · 20 February 2006, 12:55

Thanks. Yes - It seems I've been duped somewhat. My fault I guess for not going in with my eyes open. I have completed tax assessment forms for the last few years, however the IR wrote to me to say that they're happy with my affairs and I no longer need to submit self assessment.

This was before I started contracting though!

Parasol look good I agree. Honesty isnt a problem - I can keep receipts etc and prove what I have been spending. Just worried about the unreceipted stuff.

Originally posted by freshblue

I will try and be polite before you get caned on here but the expense "scam" you refer to is well known and should be avoided. Technically HMRC can go back 6 years... Have you been completing self assessment?

As for timing... start keeping receipts now and being "honest" and that will be a good start.

Parasol are good (may be too honest for you?) and Contractor Umbrella get good reps.

**malvolio** · 20 February 2006, 13:08

Oops.

That's why we keep telling people to learn the rules before they start, it's a lot safer!
Anyway, changing companies shouldn't ring any alarm bells. You also don't have to do an SA just because you're contracting, only if you're a director, which as an employee of the umbrella you won't be. So with a bit of luck, you may have got away with it. However, if you go with Parasol (good move, incidentally), you can ask them for professional guidance; they won't stitch you up!

And before anyone else leaps in with the blindingly obvious, look at getting your own company and taking control of your money properly!

**boredsenseless** · 20 February 2006, 13:15

Originally posted by malvolio

Oops.

That's why we keep telling people to learn the rules before they start, it's a lot safer!
Anyway, changing companies shouldn't ring any alarm bells. You also don't have to do an SA just because you're contracting, only if you're a director, which as an employee of the umbrella you won't be. So with a bit of luck, you may have got away with it. However, if you go with Parasol (good move, incidentally), you can ask them for professional guidance; they won't stitch you up!

And before anyone else leaps in with the blindingly obvious, look at getting your own company and taking control of your money properly!

Also for some of the expenses you legitimately claimed look back through bank and credit card statements to see if you can identify the payments. This is enough to prove you incurred the expense in most cases. It probably won't cover the whole deficit but it may limit your exposure and get you below whatever the arbitrary limit is before they start dishing out hefty fines.

Once again to everyone - receipts receipts receipts its the only way to go. Get yourself a shoe box and chuck everything in once a week get an accountant to sort it later.

Obviously the accountant prefers it if you are a bit more organised (and will charge more for the shoebox approach) but legal and disorganised is much better than organised and illegal

**Epiphone** · 20 February 2006, 16:18

Were you with P4? Parasol are good.

**Alf W** · 20 February 2006, 23:35

I want to ask a question here as it has been bugging me.

How is it that when anyone reads all this "you can claim all these expenses without receipts" type of stuff that it doesn't immediately ring bells and occur to people that the if you haven't actually incurred the expense it isn't valid to claim it?

I genuinely don't understand how anyone gets themselves into this position.

**John Galt** · 21 February 2006, 09:06

It's been said before but....if it seems too good to be true then it probably is. I use ContractorUmbrella and they make everything pretty straight forward - the way it was explained to me was if you haven't spent it then don't claim it.

**freshblue** · 21 February 2006, 10:44

Originally posted by Alf W

I want to ask a question here as it has been bugging me.

How is it that when anyone reads all this "you can claim all these expenses without receipts" type of stuff that it doesn't immediately ring bells and occur to people that the if you haven't actually incurred the expense it isn't valid to claim it?

I genuinely don't understand how anyone gets themselves into this position.

The demographic of most people who ask this question seems to be mainly newbies... They are I guess "sold" by sharp practices and perhaps are happy to take the risks too....

**malvolio** · 21 February 2006, 10:51

Agreed - goes back to my consistent argument that people should not go contracting until they at least have a grasp of the rules and a pretty good bulltulip filter.

Umbrella company recommendations