Leaving umbrella co - charges and no expenses?

[jonnyguitar]

Hi everyone. I just gave notice on my brolly company (should have done it months ago, but still) and starting my own Ltd co. My notice period to the umbrella co is 4 weeks. My questions are:

1. They say that now I've given notice I cannot submit any expenses for the remaining 4 weeks - this covers 2 months invoices, which leaves me really out of pocket. They say it's because I am not longer working on a temporary site in the eyes of HMRC. I would just like to know if this is correct as it's a real bummer. Especially as one of the invoices I am submitting was for work before I gave my intention to leave the umbrella company. They are also charging me £110 to leave!

2. Can an umbrella company make me give notice? What's stopping me changing my contract with my agency to pay my Ltd company instead?

Lastly I am considering going with SJD for my accountants. Any feedback on their service would be useful too.

Thanks everyone.

Jonny

[malvolio]

Hi everyone. I just gave notice on my brolly company (should have done it months ago, but still) and starting my own Ltd co. My notice period to the umbrella co is 4 weeks. My questions are:

1. They say that now I've given notice I cannot submit any expenses for the remaining 4 weeks - this covers 2 months invoices, which leaves me really out of pocket. They say it's because I am not longer working on a temporary site in the eyes of HMRC. I would just like to know if this is correct as it's a real bummer. Especially as one of the invoices I am submitting was for work before I gave my intention to leave the umbrella company. They are also charging me £110 to leave!

2. Can an umbrella company make me give notice? What's stopping me changing my contract with my agency to pay my Ltd company instead?

Lastly I am considering going with SJD for my accountants. Any feedback on their service would be useful too.

Thanks everyone.

Jonny

1. If you've only had one assignement while working through them, then they are right about you not having a temporary workplace, hence no claimable expenses. You will also need to record the expenses you have claimed on your next SAR as earned income since they are no longer claimable as a BIK.

2. First lesson learned. Contracts are important and binding. Read them and understand what they say. However, you can't give notice to leave and simultaneously expect them to continue to deliver their services on your behalf for free.

Doesn't bode well for your life as a Company Director, does it? Perhaps you should do some homework.

[jonnyguitar]

Thanks.

I have had several assignments under the umbrella. So does this mean they are not correct about my expenses?

Thanks

[malvolio]

Thanks.

I have had several assignments under the umbrella. So does this mean they are not correct about my expenses?

Thanks

It seems possible. It's certainly worth challenging them over it.

[LisaContractorUmbrella]

Why is the umbrella company charging you to leave??? An umbrella should deduct their margin from the gross contract rate, they certainly shouldn't be charging any fees

[Scruff]

Please name them, so the rest of us Contractor-Scum can avoid in future?

[bangface]

Hi everyone. I just gave notice on my brolly company (should have done it months ago, but still) and starting my own Ltd co. My notice period to the umbrella co is 4 weeks. My questions are:

1. They say that now I've given notice I cannot submit any expenses for the remaining 4 weeks - this covers 2 months invoices, which leaves me really out of pocket. They say it's because I am not longer working on a temporary site in the eyes of HMRC. I would just like to know if this is correct as it's a real bummer. Especially as one of the invoices I am submitting was for work before I gave my intention to leave the umbrella company. They are also charging me £110 to leave!

2. Can an umbrella company make me give notice? What's stopping me changing my contract with my agency to pay my Ltd company instead?

Lastly I am considering going with SJD for my accountants. Any feedback on their service would be useful too.

Thanks everyone.

Jonny

1. Your brolly is correct, as soon as you make them aware that it is your intention to leave; the temp workplace becomes permie and so for that reason you would be unable to offset any further expenses.

Speak with your tax office if you have any doubts, that way at least you will hear it straight from the horses mouth rather than relying on forums for tax advice!!

You say "this covers 2 months invoices, which leaves me really out of pocket" - Yes its nice to receive the tax benefit from offsetting your expenses, but it sounds like you are really dependant on them? They are costs you will incur to perform your duties and so if those costs are that high that it is causing you a financial burden when they are not offset then you really should consider getting a higher paid contract or going back to being permie (where expenses won't be an issue)!

2. Presumably you will be employed under some form of contract of employment with the brolly, so naturally one would expect this arrangement to facilitate a provision for giving notice to terminate, although in my experience most brollies won't allow for termination part way through a contract and so you should count yourself lucky if your brolly is willing to let you go so easily. The fact that you say 'Can an umbrella company make me give notice?' suggests to me that although you say 'now I've given notice' that I suspect that you either didn't want to give notice and/or tried to leave the brolly without providing any notice? If that is the case, then this is hardly the professional approach one would expect from an up and coming Director and I do hope that you don't treat all your contracts on a self employed basis with this level of professionalism (or rather lack of it) otherwise you will be out of business sooner than you can say 'where's my umbrella expenses?'!!

With this in mind, I expect the charge you refer to will relate to some form of payment in lieu of notice, which is not unreasonable and I think would be completely justified if you did indeed try to leave your brolly without giving them any notice and in that regard the amount they are charging you in my opinion is not enough as the least any contracting professional can do is fulfil the most basic terms of any agreement even it does mean providing the courtesy of a notice period. Lets face it you would be expected to give notice in any other situation, this is a standard provision of almost every contract and so why you think it is even acceptable to question whether you should give notice is beyond comprehension...

Good luck as a Director, I think you are going to need it!!!

Watch out SJD!!!!

[CoolCat]

plenty of contract I have a agreed to have had one days notice either side

[northernladuk]

plenty of contract I have a agreed to have had one days notice either side

Erm, thanks for that, have another beer.

[kevpuk]

plenty of contract I have a agreed to have had one days notice either side

That's all I can say....