I personally think that this forum is the worst place for anyone to ask for advice regarding any tax / umbrella solutions. The board is very "anti umbrella" and the individuals on here are by no means experts.
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I think this forum is the worst place to ask advice about anything. If the people here were experts they would be engaged in proper jobsOriginally posted by Tramline
Let us not forget EU open doors immigration benefits IT contractors more than anyoneComment
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As a contractor, you’ll either be affected by IR35 or you won’t. But your earnings don’t necessarily have to be restricted by it
This is from the home page on their website. How can your earnings not be restricted by IR35? As I understand it, if you fall within IR35, you are liable for income tax and both lots of NI (b*****d Bliar). I am no expert but as far as I can see that's that and no fancy 'solutions' can change it - the only difference between brollies is the expenses they 'permit' surely??Comment
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From a tax point of view you cannot claim expenses any different via a brolly than you can from your own Limited Company.Originally posted by John Galt
If caught then the expenses you can claim are obviously restricted. For example you would find great difficulty getting a laptop as a valid expense unless the contract specified own laptop. That is if caught. It would be the same via a brolly, composite, or your own limited company.
Further any expense must be wholly and exclusively business related (that's why the laptop above does not qualify, it is not an expense required for the job)
That's why I always think it is suspect when a brolly or composite says that you can take more pay home via expenses.
A trick often used (and no I'm not saying that NLL do this) is to suggest that you can claim more than the expense actually incurred through some kind of dispensation from the IR. This is in fact not true. A dispensation just means that a receipt may not be required, but the expense must still satisfy the 'wholly and exclusively' business test. Over stating the expense would mean that part of the 'expense' was for something else.
The dispensation anyway will only apply to the brolly or composite. You the worker would still need to keep reciepts and the like. You will need to anyway for your own self-assement returns.
Brolly's and composites have their place, but I do not believe that they are appropiate for tax planning. A brolly will always as expense or more so than a limited company (you have to pay the brolly after all). Further just because you go via a brolly it will not get you outside of IR35. Only good contract terms will do that. To be fair however No Longer Limited seems to be aimed at the caught market and as such do not use this as a sales tool (which some do). If you cannot or do not want to run your own company then a brolly may be the way to go. Having said that however there is an argument that those who choose a brolly for this reason are the very people IR35 was aimed at. [runs for cover emoticon]Last edited by zathras; 20 December 2005, 14:56.Comment
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[QUOTE=zathras]From a tax point of view you cannot claim expenses any different via a brolly than you can from your own Limited Company.
If caught then the expenses you can claim are obviously restricted. For example you would find great difficulty getting a laptop as a valid expense unless the contract specified own laptop. That is if caught. It would be the same via a brolly, composite, or your own limited company.
Further any expense must be wholly and exclusively business related (that's why the laptop above does not qualify, it is not an expense required for the job)
That's why I always think it is suspect when a brolly or composite says that you can take more pay home via expenses.
A trick often used (and no I'm not saying that NLL do this) is to suggest that you can claim more than the expense actually incurred through some kind of dispensation from the IR. This is in fact not true. A dispensation just means that a receipt may not be required, but the expense must still satisfy the 'wholly and exclusively' business test. Over stating the expense would
mean that part of the 'expense' was for something else.
That's why I put 'permit' in inverted comma's Zath. I can't see what this company can be offering that is different from any brolly unless they are doing the P4 type jiggery pokery with expenses that we all know so wellComment
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No, the same rules apply to expenses whether you're a permie, brollied, in or out of IR35, got your own company or any other variation.the only difference between brollies is the expenses they 'permit' surely
The only real difference is how much the brolly charges compared to an accountant and how much you value your time spent doing the books (which is not much, but some people are lazy).
Outside IR35, if you come away with much more than roughly 80% of gross (assuming minimum wage and the rest as divis), you're probably committing tax evasion (or you're using an offshore EBT) and any reliable brolly, composite or accountant won't let you do that.
The expenses thing it a total myth and is why we tend to treat brollies with suspicion, since too many of them (not NLL I hasten to add!) like to give the impression that it's tax-free cash.Blog? What blog...?
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Expenses
Just for the record guys, we ask for receipts for every claim that is wholly for business use, specifically to protect the contractor and also to make sure that the expenses is a valid one, before these expense can be offset against any contractors salary.
For the record you can claim PC's, Laptops etc......but only if you are deemed to be Self Employed and these are then deemed to be assets in the Inland Revenues eyes, so you get a certain amount of tax relief (25%) off these, this will then appear in your end of year tax return, self assessment.
I would like to thank you as most of you seem to appreciate that we are doing things correctly and with the contractors best interests at heart, and for comments like that on this forum it must be Christmas!!!!!!!!!!
Kind Regards all.
Robert SharpComment
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Just for the record guys, we ask for receipts for every claim that is wholly for business use, specifically to protect the contractor and also to make sure that the expenses is a valid one, before these expense can be offset against any contractors salary.
I acknowledge that this could just be me being really thick but this doesn't explain how you can offer a better return for contractors caught by IR35 than any other brolly?Comment
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Expenses
John I was merely stating for the record in relation to your comments and that of Zath, that unlike another umbrella who you have mentioned we do not in any, way, shape or form expand or ask our contractors to be creative in any expenses that they are claiming for, they have to be specific business expenses.
Should you wish to find out how we can offer more money then other brollies, you can call me on 0845 226 2260 and I can let you know, I think it would be unfair and unprofessional if I tried to sell this in a forum on Contractor UK, as much as I would also love to, "walking into the lions den" springs to mind with you guys, as you all quite clearly have your opinions and thoughts on what you think is the correct way to operate regarding IR35.
Also hasten to add that I am paid to sell and not type.
Maybe I will speak to you in the future.
Good day SirComment
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Don't know about you lot but I think it's a bit odd that he wont answer a simple question and I thought the only people allowed opinions on the way the IR35 operates is the IR. Lions Den huhh! we're all pussycats on here - I'm hurtOriginally posted by Robert Sharp
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