Newby expenses question

[JLo]

Very new to this as I've been an employee for the last 40 years... so please excuse the dumb questions.

Taking V.R. and leaving work shortly. After a month the company is willing to take me on as a contractor. I've agreed a rate that will include some limited expenses, and will be working from home and have agreed to include cost of limited travel to their office for meetings etc within the daily rate. The cost of longer distance travel (flights, accomodation, etc) will be charged extra as exceptional expenses.

My question is, if I join an umbrella company, can I separate out the expense claimed into ones to be charged to the client, and ones that are not to be charged, but to be used for tax relief purposes only?

As I will be working from home, can I claim (for Tax) a portional use of home, heating, telephone, broadband, etc)

Thanks in anticipation.

[Torran]

One month does not seem long enough to me to be honest. IANAL and I think you need advice on this. I would imagine that at best your expenses claims could be at risk and at worse it could have implications on the VR money.

I may be talking out my arse of course but someone on here will know from experience on the implications.

[BrilloPad]

Sounds like you will be caught by IR35.

[RichardCranium]

Taking V.R. and leaving work shortly. After a month the company is willing to take me on as a contractor.

And then you sue them for unfair dismissal.

You need advice. My guts tell me you are going to get screwed by the tax people if you go ahead.

[RichardCranium]

My cynical head just kicked in.

Taking V.R. and leaving work shortly.

You leave all happy with no fuss and the minimum legal redundancy settlement.

After a month the company is willing to take me on as a contractor.

After a month your wife asks "When are they taking you on as a contractor?"

But they never do... and there is nothing you can do about it.

Don't fall for it.

[malvolio]

Wrong, wrong, wrong....

If you go back to your old employer in less than six months, you will be liable for 40% tax on your redundancy payment. And, of course, you will be so far inside IR35 it's not true.

Don't be stupid, walk away now before you get into real trouble.

[Lumiere]

Sounds like you will be caught by IR35.

\/

if I join an umbrella company

[bassy]

Didnt someone fall for this trick a little while ago on here. Same story took redundancy and was told that they would take him on as a contractor and then a week or so later the company told him bye bye

[FarmerPalmer]

Wrong, wrong, wrong....

If you go back to your old employer in less than six months, you will be liable for 40% tax on your redundancy payment. And, of course, you will be so far inside IR35 it's not true.

Don't be stupid, walk away now before you get into real trouble.

WHS

[MPwannadecentincome]

Wrong, wrong, wrong....

If you go back to your old employer in less than six months, you will be liable for 40% tax on your redundancy payment. And, of course, you will be so far inside IR35 it's not true.

Don't be stupid, walk away now before you get into real trouble.

I think this only applies if you go back to do the same role. If its a different role then should not be a problem.

Best to get advice - if you are getting redundancy you will have to sign an agreement which a lawyer should be checking anyway - you can ask them - btw the company should pay for the lawyer to check the agreement, if they do not and you do not get legal advice on your redundancy agreement they are exposing themselves to unfair dismissal claims as the courts view is that you 'could not have entered into the agreement and understood its implications without legal advice'.