Claiming Back Expenses

[dmini]

Could be a p4 type game - got caught on this myself in the early days!
Pay minimum wage for whole month - even if you are only being paid for 3 days work
Then expenses
Then Divi the rest
If so, and the first month - then it WILL get better. However - if not - and your expenses are of the "generous dispensation" kind - you are heading for trouble - read the threads on those.
None of the "decent" umbrellas, as far as I know play that game - you normally get full expenses - so.......would you like to name the delightful brolly? Adapt the name if you want

[VectraMan]

Assuming a Ltd., or one of the dodgy umbrellas:

You can claim back 100% of the expenses, but all that money comes out of the profit your company makes, so you end up with less money in your dividend. What it actually means at the end of the day is that you've saved yourself the tax that you would have paid on the money you claimed as expenses, which if you're keeping below the upper rate limit happens to be 19% corporation tax.

I'm guessing that's what they must mean.

[Herman]

Dear all,

I have just come over here and am working as a contractor for an umbrella company (yes I know its better to run it yourself but I decided I didn't want the hassle). I have recently been told by my umbrella company that I can only receive back 19% of the expenses that I incur for travelling to and from work from my principle place of residence and any food expenses. Other people receive back 100% of their expenses, what is the actual story? If you could answer in very simple lay person terms it would be much appreciated.

Thanks