Why are umbrella companies being required more often?

[willendure]

Because IR35 doesn't apply to somebody operating through an umbrella.

Perhaps I could pay my Ltd. rent on the office...

Might there be such a thing as an umbrella that would deduct the office rent as an expense before tax? If IR35 does not apply, in theory at least - this ought to be possible?

What about people who work from home (everybody at the moment) - are they claiming expenses for the home office whilst working through a brolly? Perhaps not, it might mean they end up paying business rates on part of their homes.

[eek]

Perhaps I could pay my Ltd. rent on the office...

Might there be such a thing as an umbrella that would deduct the office rent as an expense before tax? If IR35 does not apply, in theory at least - this ought to be possible?

What about people who work from home (everybody at the moment) - are they claiming expenses for the home office whilst working through a brolly? Perhaps not, it might mean they end up paying business rates on part of their homes.

They will be claiming the working from home allowance or billing the appropriate propotion of the bills back to the company - we are doing the former as both Mrs Eek and I are working from home so I can't say heating from 9 to 5 is my company's responsibility at the moment.

[willendure]

billing the appropriate propotion of the bills back to the company

Thanks. Just reading up about brollies and expenses. Seems they cannot pay expenses since the rule change in 2016, but the articles I read say that it can potentially be billed back to the client or agency. I guess I will have to be up-front about the cost of my office and get it all agreed before any contract is signed.

[malvolio]

Thanks. Just reading up about brollies and expenses. Seems they cannot pay expenses since the rule change in 2016, but the articles I read say that it can potentially be billed back to the client or agency. I guess I will have to be up-front about the cost of my office and get it all agreed before any contract is signed.

Yes it can be billed back to the client as part of the contract price. Whether or not the client will accept an extra percentage on top of the market rate to cover your operating costs is a whole other question that only you can answer, but I would be wary of that happening.

And the money, regardless of what it covers, comes back to you personally net of of all taxes, in effect making you liable for paying YourCo's CT bill out of your income (which demonstrates just how mad the whole thing really is).

As has been said, your best option is to go direct to clients and start selling services rather than effort. In this market, that can be done but it is not going to be easy...

[northernladuk]

Thanks. Just reading up about brollies and expenses. Seems they cannot pay expenses since the rule change in 2016, but the articles I read say that it can potentially be billed back to the client or agency. I guess I will have to be up-front about the cost of my office and get it all agreed before any contract is signed.

You are just clutching at straws and making things up and you need to stop. There is a very clear separation between being a deemed employee inside and your LTD and outside gigs. If you are inside you get your money directly after tax.
There is no being up front with the client about your office costs. They don't care. That's your LTD's problem and they aren't touching that. They are effectively employing you, nothing else.

As usual with these questions, consult with your accountant as well.

As Tarby says.. Where have you been for the last two years? I'm finding this thread a tad difficult to believe.

[eek]

Thanks. Just reading up about brollies and expenses. Seems they cannot pay expenses since the rule change in 2016, but the articles I read say that it can potentially be billed back to the client or agency. I guess I will have to be up-front about the cost of my office and get it all agreed before any contract is signed.

It won't happen - they wouldn't be allowable expenses.

[willendure]

It won't happen - they wouldn't be allowable expenses.

Why not? If the client took me on as an employee, they would be paying same expenses for my on-site desk - rent/heating/leccy/etc.

[malvolio]

Why not? If the client took me on as an employee, they would be paying same expenses for my on-site desk - rent/heating/leccy/etc.

I think you should give up now. The flaws in your arguments are getting embarrassing.

[willendure]

You are just clutching at straws and making things up and you need to stop.

I've seen this "Contractor Umbrella" company mentioned a few times on these forums. From their FAQ:

https://www.contractorumbrella.com/r...pany-employee/

See "Are any other expenses claimable?"

"Expenses can still be paid – but these must be approved by your recruitment agency and paid over in addition to your normal daily or hourly pay rate. This matches the treatment that permanent, full-time employees can expect – expenses must be submitted, approved and reimbursed on top of salary. These are known as chargeable expenses."

Is that simply untrue then?

[eek]

I've seen this "Contractor Umbrella" company mentioned a few times on these forums. From their FAQ:

https://www.contractorumbrella.com/r...pany-employee/

See "Are any other expenses claimable?"

"Expenses can still be paid – but these must be approved by your recruitment agency and paid over in addition to your normal daily or hourly pay rate. This matches the treatment that permanent, full-time employees can expect – expenses must be submitted, approved and reimbursed on top of salary. These are known as chargeable expenses."

Is that simply untrue then?

Nope but the list of allowed expenses are very minimal and would really be out of the ordinary one-off travel to a very different site.

Rent for your office is definitely not going to be allowable.