Umbrella 1 Assignment Before Going Ltd

[claretfan]

Hi,

I've done a quick search but can't find the answer....

I started contracting in March 2011 via an Unbrella company and had all intentions of staying with them for future contracts.

When I saw the benefits of LTD, I switched mid 1st contract in July 2011 (I have had another contract recently)

I have just been sent a P11d from the Umbrella stating expenses outside of those allowable - travel, hotels etc.

Do I have to declare to IR or can I get round this ?

Thanks

[northernladuk]

Hi,

I've done a quick search but can't find the answer....

I started contracting in March 2011 via an Unbrella company and had all intentions of staying with them for future contracts.

When I saw the benefits of LTD, I switched mid 1st contract in July 2011 (I have had another contract recently)

I have just been sent a P11d from the Umbrella stating expenses outside of those allowable - travel, hotels etc.

Do I have to declare to IR or can I get round this ?

Thanks

Get around it as evading tax you mean? Didn't part of setting an LTD up involve getting an accountant? If so maybe ask him?

[claretfan]

Yes I did get an accountant but this never came up in conversation.

No I am not trying to evade tax, I'd only be interested if there was a legit way around.

Why think the worst of everyone ?

[malvolio]

Why think the worst of everyone ?

Just a wild guess, but probably something to do with a know-nothing newbie whose question is "How do I get out of paying legitmately owed taxes"?

Get it clear in your mind before you get into touble, inadvertantly or not: a Limited Company is not there so you don't pay taxes on things. And be very clear that company money and your money are two entirely different things; you and YourCo are legally different persons (literally) and don't ever mix them up.

That's also why the standard answer is "ask your accountant". There may be a legal way to mitigate a payment, in which case he will know it.

[Waldorf]

Hi,

I've done a quick search but can't find the answer....

I started contracting in March 2011 via an Unbrella company and had all intentions of staying with them for future contracts.

When I saw the benefits of LTD, I switched mid 1st contract in July 2011 (I have had another contract recently)

I have just been sent a P11d from the Umbrella stating expenses outside of those allowable - travel, hotels etc.

Do I have to declare to IR or can I get round this ?

Thanks

If the umbrella has sent you a p11d then I would guess that they have already sent a copy to the tax man, so you will need to declare this on your tax return.

[Wanderer]

Just a wild guess, but probably something to do with a know-nothing newbie whose question is "How do I get out of paying legitmately owed taxes"?

Yeah, because none of us are tax avoiders here, are we....

[malvolio]

Yeah, because none of us are tax avoiders here, are we....

If you don't understand the difference.... perhaps better to keep quiet and be thought a fool than speak up and prove it.

[Wanderer]

If you don't understand the difference.... perhaps better to keep quiet and be thought a fool than speak up and prove it.

There is nothing dirty or wrong about asking if there are ways to reduce your tax liability, even if the answer is "No there isn't a legal way to reduce it". This is the accounting forum we discuss such things here, if our only advice is to speak to an accountant then we aren't being very helpful are we...