Free Stuff With An Umbrella Company

[miffy]

There are some circumstances where an umbrella company is fine - e.g. if you are only going to do a contract for 6 months between permie jobs, then I wouldn't bother with getting a new Ltd and then closing it down.

That I totally understand and why people don't want the hastle for a short stint. Thats cool.

The people I refer to (and one very good friend) have been using them for years though. My brolly friend has been using them since they first appeared which is shocking really.

He was talking about dispensation again the other day and the "bonus" he gets each day for being out of the house for more than 10 hours (£30 or whatever it is). It's ok though, he's got it in writing from the umbrella so all liability is waived scary.

Just think of all that extra tax gordo has spent on the chavs...

[malvolio]

There are some circumstances where an umbrella company is fine - e.g. if you are only going to do a contract for 6 months between permie jobs, then I wouldn't bother with getting a new Ltd and then closing it down.

As a longer term option, I wouldn't use an umbrella, but I know people that have.

I've always said that you use an umbrella to get started as a contractor, since it gives you safe time to sort out the dozens of things you don't know you don't know, or if you have a solid IR35-caught contract (and even then you can save a little more with your own company).

What annoys me is the thousands of contractors using umbrellas becuase they can't be bothered. Not becuase they're being stupid and lazy (well, not all of them, anyway) but because it makes it harder to prove to HMG that contractors need to use their own companies to operate effectively and not simply as a tax dodge. [/rant]

[LisaContractorUmbrella]

Uh, pass? Look, I am new to contracting, and I know a guy who is contracting with an umbrella company who says he can give them stuff like receipts from taxi rides and purchases of hardware and stuff, and he can claim he needed it to do his job, and therefore make his income, and so he gets that much money off the tax he has to pay.

Now I don't know if he's perhaps doing the wrong thing, or maybe what he's doing will come back to haunt him - I just want to know from any existing umbrella contractors with experience (sort of why I'm here), is this genuine... Can I do that, just save receipts from computer purchases and stuff and take that money off my year tax bill?

Do I need a LTD to do that or can I do that with an umbrella company?

Thanks...

If you claim any cost as an expense whether it be through your own company or through an umbrella company you must be able to prove that the cost is entirely, wholly and exclusively caused by the contract i.e. is a genuine cost of business. If you have not incurred the cost and you cannot prove that it is a cost of business don't claim it. Also, an expense claimed in this way is a tax benefit which means that you get tax relief on the amount claimed it does not mean that you get the full cost back.

HTH

[NickFitz]

I'm still amazed at how many contractors I've worked with are using brollies.

I'm gonna get flamed for saying this, but if you don't have a limited you're not a real contractor are you?

You are HMRC and I claim my £5.

Seriously, if you work as a contractor, you are a contractor. What arrangements you prefer to make to establish your employment status and take care of your payroll and tax/NI liability has nothing to do with it.

If you don't have your own company then you are not the owner of a company. That's it.

[malvolio]

You are HMRC and I claim my £5.

Seriously, if you work as a contractor, you are a contractor. What arrangements you prefer to make to establish your employment status and take care of your payroll and tax/NI liability has nothing to do with it.

If you don't have your own company then you are not the owner of a company. That's it.

If you don't own your own company, you're employed by someone else. You are therefore, by any definition you care to use, an employee. You have no responsibility for your Tax and NIC payments different to any other employee. You may be a contractor, but you are not in business. And you are making the usual mistake of merging Contractor and Director and ContractorCo - they are different legal beings with different legal requirements

[Sockpuppet]

Uh, pass? Look, I am new to contracting

Then read the first timer guide. Rad the forum these questions have been asked before, times.

[BrilloPad]

I'm still amazed at how many contractors I've worked with are using brollies.

I'm gonna get flamed for saying this, but if you don't have a limited you're not a real contractor are you?

Anyone got any petrol?

I am self employed - what is wrong with that?

[NickFitz]

I'm still amazed at how many contractors I've worked with are using brollies.

I'm gonna get flamed for saying this, but if you don't have a limited you're not a real contractor are you?

If you don't own your own company, you're employed by someone else. You are therefore, by any definition you care to use, an employee. You have no responsibility for your Tax and NIC payments different to any other employee. You may be a contractor, but you are not in business. And you are making the usual mistake of merging Contractor and Director and ContractorCo - they are different legal beings with different legal requirements

I was answering miffy's question, and you clearly agree that owning a Ltd is not a requirement for being a "real" contractor - and that, therefore, miffy's peculiar attitude is misinformed.

[TheFaQQer]

Then read the first timer guide. Rad the forum these questions have been asked before, times.

Young youngsters with your slang, eh!

Rad the website - totally gnarly, dude.

[miffy]

I am self employed - what is wrong with that?

Nothing if you're an electrician