Expenses question

[CloudWalker]

Very true but I hope people see Umbrellas as a short term solution so much more likely to apply than a LTD.

This,
Umbrellas will manipulate your pay slip by adding in things like "Holiday Pay / Commission" to your Basic Pay so you pay the lowest income tax and NI. This allows them cream off the rest. And they keep a cut of the VAT too!

[Scotchpie]

This,
Umbrellas will manipulate your pay slip by adding in things like "Holiday Pay / Commission" to your Basic Pay so you pay the lowest income tax and NI. This allows them cream off the rest. And they keep a cut of the VAT too!

I really really need to leave the umbrella and start a Ltd.

[TheFaQQer]

And they keep a cut of the VAT too!

How do umbrellas keep a cut of the VAT?

They invoice the agency including VAT, they pay the VAT over to HMRC, surely?

[CloudWalker]

Brollys are ok if you don't want the hassle of running a company.
But If you do run your own company then you still need to pay an accountant company minimum £95 per month to do most of the stuff for you. That is unless you know what your doing and can balance the books yourself!

[Batcher]

I'm with Parasol and I'm unsure of what their policies are on accommodation in London.

Why don't you ask them?

[CloudWalker]

How do umbrellas keep a cut of the VAT?

They invoice the agency including VAT, they pay the VAT over to HMRC, surely?

The dodgy "Off Shore" umbrella companies in the Isle of Man dont

http://www.offshoreumbrellacompanies.com/

[Taita]

This,
Umbrellas will manipulate your pay slip by adding in things like "Holiday Pay / Commission" to your Basic Pay so you pay the lowest income tax and NI. This allows them cream off the rest. And they keep a cut of the VAT too!

An employee of the umbrella is not entitled to claim VAT so "And they keep a cut of the VAT too!" is as wrong as it is meaningless!

[TheFaQQer]

The dodgy "Off Shore" umbrella companies in the Isle of Man dont

Offshore Umbrella Companies for UK Contractors | Top Offshore Umbrella Companies, Isle of Man, Best Offshore Umbrella Company guide

So when you said that umbrella companies keep a cut of the VAT, you meant that dodgy offshore umbrella companies keep a cut of the VAT?

This is hardly indicative of the umbrella industry.

[LisaContractorUmbrella]

This,
Umbrellas will manipulate your pay slip by adding in things like "Holiday Pay / Commission" to your Basic Pay so you pay the lowest income tax and NI. This allows them cream off the rest. And they keep a cut of the VAT too!

No. Absolutely not. Tax avoidance schemes may operate in this way, umbrella companies do not

[Sausage Surprise]

No. Absolutely not. Tax avoidance schemes may operate in this way, umbrella companies do not

What about flat rate VAT? Do Umbrellas utilise this?