New to all this, need advice.

[malvolio]

Errm.... Think about it - why would anybody pay you expenses for things you are not spending out?

Well actually it's because they con you into thinking they are giving you free money, you sign up and they get their fees - which is why they are in business. When the taxman checks up on it (and he will), it's you that gets the tax evasion prosecution, not the umbrella. So do not take their advice, speak to a proper accountant, not someone with a vested interest.

You're not talking about what's allowed in law, you're talking about what the umbrella is letting you claim, which is not the same thing and in this case is IMHO illegal. Bin these guys and go with an honest one.

[Lucifer Box]

Analyst, the rule is very simple, no matter what your umbrella tells you: you can only claim expenses that you have legitimately incurred. You (not the umbrella) have to be able to prove the money was legitimately spent by producing receipts or other proof of purchase (e.g. rail tickets, credit card statements, etc.) when asked to by HMCR (and at the levels your umbrella is telling you to claim, they are almost certain to ask).

[Mordac]

Analyst - you didn't bother to read my first post did you? I even named your brolly as one to avoid.

Just to spell it out for you, one more time, read this slowly.

Expenses are only "unreceipted" at the point of claiming from the brolly - basically because they are too lazy to do the processing for you - you still need receipts. It's not "free money". It's a scam. And you are the one who will end up falling for it. In the form of a large tax bill.

OK? Anything you still don't understand?

[s2budd]

New to all this, need advice.

A word of advice. Although on the face of it your contract hourly rate is higher than your permy hourly rate there are extra costs.
I generally work on the rule that is earning £35K per year in a permy job then you should be earning £35 per hour if working from home or £45 if working away from home. Anything less and you should be permy, anything more and keep it in the bank for when you are not working.

[boredsenseless]

£30 for staying at your girlfriends.

Sorry but I think this is taking the p155, unless you can prove that you have never been allowed to stay there before without being charged for the privilege.

Staying with friends and family is an acceptable expense if they actually charge you for, issue a receipt and then pay tax on it.

For any item above about 10 quid the simple test as to whether or not it is remotely allowable is this - is the person getting the money asking for it in cash?

If they either aren't getting the cash, or don't want it traceable I wouldn't even think about touching it.

Even if you passed the above simple test there are countless other rules as to what you can and can't claim.

The £30 dispensation is there for one reason only. THE HMRC knows you can't even get a broom cupboard in a flea pit for that nowadays so if you claim it they know there is a decent chance you haven't spent it, hence easy picking for an investigation, and as it is so cheap, if you did actually spend it, the chances are the person you gave it to didn't disclose it so they can get them to.


Now before you shout about the 'rent-a-room' scheme yes this is fine and it is tax free up to whatever limit, but only if you declare it, if you don't mention it on your tax return its classed as income and taxable.

[ratewhore]

I wouldn't pay £30 to stay at your girlfriends. It's a right tip...