Reimbursing backdated expenses after giving notice? Please help!

[TheFaQQer]

If you worked on more than one assignment and are still in your notice period then there is no reason why your salary/expenses cannot be paid.

Even if the umbrella company were to pay the money as a bonus which would then be taxable you would have the option to claim the expenses directly through HMRC.

Unless it's your final engagement, because that workplace can no longer be considered temporary any more.

[LisaContractorUmbrella]

Unless it's your final engagement, because that workplace can no longer be considered temporary any more.

Not exactly - if a worker has a series of temporary (i.e. of a limited duration) assignments which are not linked through an over-arching employment contract then each one would be considered a permanent workplace for tax purposes. A final workplace which represents a second or third etc assignment remains a temporary workplace provided that the worker is engaged under a genuine over-arching contract. This is a complicated area and my compliance manager here (who is ex HMRC) has had clarification from HMRC on this very point (they don't make life easy you know )

[TheFaQQer]

Not exactly - if a worker has a series of temporary (i.e. of a limited duration) assignments which are not linked through an over-arching employment contract then each one would be considered a permanent workplace for tax purposes. A final workplace which represents a second or third etc assignment remains a temporary workplace provided that the worker is engaged under a genuine over-arching contract. This is a complicated area and my compliance manager here (who is ex HMRC) has had clarification from HMRC on this very point (they don't make life easy you know )

I guess it's changed since last year?

The concept of an over-arching contract is extremely complicated but, basically, it gives continuity of employment to a contractor who is working on a series of assignments under a global employment contract. Travel and subsistence expenses are only allowable when the contractor is travelling to a temporary location and a workplace to which you travel every day knowing that it will be the only workplace you travel to for the remainder of your employment with the umbrella company means that it will be classified by HMRC as a permanent workplace. Therefore, the umbrella company, correctly, disallowed the travel and subsistence costs.

[stek]

Did they find you work, or did you find the contract and just use them to sponsor the visa?

And if it's a T2 visa, resigning will cancel the visa....

[northernladuk]

I am sorry but if you can't be bothered to claim back expenses from 2011 then you deserve everything you get.

[brother52]

Thanks everyone for your excellent feedback.

One more detail: I am not a permanent resident of the UK and I own a home overseas. They, in fact, require that for claiming accomodation expenses. Would this have an effect on the temporarity of my workplaces?

I understand that they are referring to the "24-month rule" one interpretation of which is this: Clarity Finance Consulting – relaunching Soon

At the point that you resign, or advise your Umbrella Payroll Company that you will be leaving at the end of your current assignment then your temporary work place will be deemed to be a permanent workplace, from the point of the decision or disclosure, then no further travel and subsistence claims cam be put through.

What would constitute a FURTHER claim here?

On 5th of May 2014 have prepared and signed claims for up to January 2014, then I resigned on 12th of May. But I only emailed them these claims on 13th of May.

[TheFaQQer]

What would constitute a FURTHER claim here?

A claim for expenses made after you have resigned, regardless of the period that the expense relates to.

[kal]

It is not salary that the expenses reimbursments come from, I think. Here are some numbers. My salary is £41K per year, but my rate was £400 per day. They receive £8K (£400 x 20 days) per month from the client, make necessary deductions, this leaves a little over £6K. From that they pay me £3400 gross as my salary as per employment contract. This leaves £2600 suprlus from which they can reimburse my legitimate expenses and/or pay it out as a taxable bonus.

For quite a while I did not claim the expenses or taken the bonus, letting the surplus accumulate. Now I want to claim these expenses but they are saying this may be againts some HMRC ruling because I already gave leaving notice.

Does that make sense?

P.S. They also sponsored my work visa which may explain a higher cut or some of their practices. Overall they come across as decent people and I don't think their intention is to pocket my expenses money.

£400 a day and you were with an umbrella!, wow you really don't care about maximizing your take home pay, even as a Ltd inside IR35 you would have been better off, still if you can't be bothered to claim expenses going back 3 years I guess throwing money away doesn't bother you...

[kal]

It is not salary that the expenses reimbursments come from, I think. Here are some numbers. My salary is £41K per year, but my rate was £400 per day. They receive £8K (£400 x 20 days) per month from the client, make necessary deductions, this leaves a little over £6K. From that they pay me £3400 gross as my salary as per employment contract. This leaves £2600 suprlus from which they can reimburse my legitimate expenses and/or pay it out as a taxable bonus.

For quite a while I did not claim the expenses or taken the bonus, letting the surplus accumulate. Now I want to claim these expenses but they are saying this may be againts some HMRC ruling because I already gave leaving notice.

Does that make sense?

P.S. They also sponsored my work visa which may explain a higher cut or some of their practices. Overall they come across as decent people and I don't think their intention is to pocket my expenses money.

Can Umbrellas sponsor work visas?

[GlenW]

A claim for expenses made after you have resigned, regardless of the period that the expense relates to.

That doesn't seem right to me. If the expenses were incurred before notice of resignation was made I would have thought that the OP would still be entitled to them.