Best Umbrella Company to use?

[gezzagregz]

It's quite simple.

A dispensation means that the company holding the dispensation does not need to declare the reimbursement of valid businesses expenses on a P11D, according to the conditions of the dispensation. Some, for example, may only provide a dispensation for accommodation, not for food. Some will have a limit on them, for example, the Danbro dispensation means that subsistence expenses, which are under £26 a day, and are valid business expenses, do not need to be declared on an employee P11D. I have a dispensation for my company that says that I don't need to declare any expenses on it, with no limit.



As I have said, my company has a dispensation with no limit on it. Following the logic that having a dispensation is an extra perk, that would mean that I could claim an infinite amount of expenses, because my dispensation "allows" me to do it. It means no such thing, however - it means that I don't need to report valid business expenses on a P11D. That is all - it does not mean that I can claim expenses that I never incurred; it does not mean that I can bump my expenses up to a round figure.

Regardless of what your employer has to report to the tax man, if you do not incur a valid business expense, then you cannot claim it. There is no ambiguity - having a dispensation makes paperwork easier for the employer, but does not grant the employee carte blanche to claim for expenses that have never been incurred.

The simple way to clarify this is to ask the umbrella company three questions:

1. Can I claim £XX a day for subsistence?

If yes, then ask

2. Do I need to keep receipts for the expenses?

If no, then ask

3. So I assume that your company will indemnify me against the penalty or other costs imposed during an HMRC investigation into my expenses?

The third one is the one that they will then start to back-track on the other two responses.

Cheers for that bud, it kinda makes more sense now. But you can understand what i mean when loads of different people tell you different things!

[slowjoe]

I've been reading this with interest.
My hubby is coming to the end of his second week of his first contract so we are still finding our feet.

Anyway having filled in his expenses and time sheet last week he rang his umbrella company to check he'd filled it in correctly.
And guess what they told him?
You can claim up £45 per day accommodation without receipts so you may as well put that amount down.
He hasn't by the way and is getting receipts for everything.

But that comment has brought me to this website and I am looking round at all possibilities including going LTD route.
He initally went umbrella just to start off. We do have an internet company but it's not LTD - yet!
Just need the money to pay the fees for that to happen!

[TheFaQQer]

I've been reading this with interest.
My hubby is coming to the end of his second week of his first contract so we are still finding our feet.

Anyway having filled in his expenses and time sheet last week he rang his umbrella company to check he'd filled it in correctly.
And guess what they told him?
You can claim up £45 per day accommodation without receipts so you may as well put that amount down.
He hasn't by the way and is getting receipts for everything.

But that comment has brought me to this website and I am looking round at all possibilities including going LTD route.
He initally went umbrella just to start off. We do have an internet company but it's not LTD - yet!
Just need the money to pay the fees for that to happen!

Get him to ask the three key questions that I suggested earlier:

1 - Can I just claim a flat amount, even if I don't incur the costs?

2 - Do I need to keep receipts?

3 - Will you indemnify me against any penalties HMRC dish out?

It's shocking that the company that you are relying on for advice is suggesting that you commit fraud. In the end, it's nothing to do with them if you get investigated - you should know the rules, therefore it's you that gets hammered. Since they won't put it in writing, you can't sue them for misrepresentation.

If this is the quality of the advice, I'd suggest moving immediately - and name and shame them here, since they are imparting advice which is negligent to say the least.

[PayMatters]

Please feel free to give PayMatters a call if you are looking for an Umbrella Company.

I am a Partner of PayMatters and as a Chartered Accountant our aim is to give a professional and compliant service while ensuring contractors benefit from tax relief's where available.

I would also recommend ringing at least 3 umbrella companies as you will get a fair idea which ones to trust by speaking to their advisors. It is not always best to go with the one that claims your take home pay will be highest but to take into account how professional they are and the service they offer.

[EchoSierra]

When I didn't have my own Ltd Co I used

http://www.libertybishop.co.uk/

They were pretty good on the whole.

[bangface]

Paymatters, does it?

Please feel free to give PayMatters a call if you are looking for an Umbrella Company.

I am a Partner of PayMatters and as a Chartered Accountant our aim is to give a professional and compliant service while ensuring contractors benefit from tax relief's where available.

I would also recommend ringing at least 3 umbrella companies as you will get a fair idea which ones to trust by speaking to their advisors. It is not always best to go with the one that claims your take home pay will be highest but to take into account how professional they are and the service they offer.

Although I agree with what you are saying, why should anyone call Paymatters for an umbrella service when there are far more established brollies with good long standing reps in the marketplace? According to Companies House; Paymatters was only incorporated in October 2008 and no accounts have been filed to date, so how can we be assured that you are not a fly by night outfit who will relieve us of our hard earned???...

Extract from Companies House:

Name & Registered Office:
PAYMATTERS (ACCOUNTANTS) LLP
3000 AVIATOR WAY
MANCHESTER
M22 5TG
Company No. OC340775

Status: Active
Date of Incorporation: 13/10/2008

Country of Origin: United Kingdom
Company Type: Limited Liability Partnership
Nature of Business (SIC(03)):
None Supplied
Accounting Reference Date: 31/10
Last Accounts Made Up To: (NO ACCOUNTS FILED)
Next Accounts Due: 13/07/2010
Last Return Made Up To:
Next Return Due: 10/11/2009

[PayMatters]

Hi Bangface

I appreciate your comments that PayMatters is a new business and we are new to the Umbrella Company sector.

What I can say though is that I have been working as a Chartered Accountant for over 20 years and have previously run (with my business partners) a number of successful and compliant regulated businesses (including FSA regulated businesses).

What we can also guarantee is that because we are new to the sector there are no nasty skeletons hiding in our closet i.e. we have never relied upon or encouraged abuse of dispensations.

We have also introduced steps to protect our "employees". We ring fence funds received from the client and hold these separately for distribution i.e. they are not used to fund our business. We also have many arrangements in place whereby we can pay out before receiving funds (i.e. we pay-out on remittance rather than receipt).

We also have many references from exisiting "clients" that are happy with our service.

I hope this adequately explains our service.

Regards,

Miles
PayMatters

[cojak]

If you want to advertise on this forum PayMatters, I suggest you do what other umbrellas do and pay for it.

Dredging up old posts is not considered good manners. At least wait for a contractor to ask a question that you can help with now.

[blacjac]

At least get your facts right about VAT & Expenses as well.....

[PayMatters]

If you want to advertise on this forum PayMatters, I suggest you do what other umbrellas do and pay for it.

Dredging up old posts is not considered good manners. At least wait for a contractor to ask a question that you can help with now.

We do advertise here thank-you!