Reply to: Umbrella company recommendations

[Cowboy Bob]

A number of replies on this thread refer to keeping all original receipts in case the taxman does an inspection. I also see Parasol Umbrella Company recommended several times. Parasol insist that you send in all original receipts (e.g. for rail travel) to them in order to validate your expenses claim. How then does this 'square' with keeping all receipts in case the taxman also wants to see original receipts?

Parasol will be obliged to either forward them on to the tax man, or to return them to you if you need to. They're not going to get destroyed.

[absoft]

Original Receipts

A number of replies on this thread refer to keeping all original receipts in case the taxman does an inspection. I also see Parasol Umbrella Company recommended several times. Parasol insist that you send in all original receipts (e.g. for rail travel) to them in order to validate your expenses claim. How then does this 'square' with keeping all receipts in case the taxman also wants to see original receipts?

[Ivor1]

Ive been with GIANT 2 yrs, IR did ask questions late last year but havent heard anything since.

One thing I would comment about GIANT is that when I first used them they were we will help you, your are employee etc, since about 6 months ago though Ive noticed them distancing itself from contractors using them, lots of things on there web site now pop up that force you to agree giant has no liability if x or y happens. I cant go into to much details hear as they have £11k of my cash at the moment but recently they have really shafted me by not be willing to tell an external agency when my contract ends, again the reason for this is to protect GIANT not you who pay them a fee.

I am now leaving GIANT, not saying GIANT are all round bad, they always paid on time etc, but they have really screwed me over this time on an issue that not only impacts me but my wife kids and having a roof over my head.

[DaveB]

I'm just about to make the leap from perm to contracting ... finding it a bit difficult with the 4 week notice period ... did you have similar problems ?

Nope, was up front about my notice time - 8 weeks - and it wasnt a problem. It takes most complanies that long to get their act together and actually do the paperwork to hire you anyway.

Get all your business stuff sorted up front, LTD or Brolly, bank accounts, VAT registration etc so you can be ready to go as soon as you need to. If your on 4 weeks notice then go for the interviews, be upfront about your availability, it shouldnt be an issue.

If the agancy you are using are pushing you to be available quicker then push back. Your in a permie roll, you have a guarenteed income for the forseable future, you can afford to wait for the right gig.

[el duder]

Registering a company

i am currently setting up a non-IT business. LTD

although i still contract through an umbrella for my IT work, can i send my IT contracts/invoices through my new registered company from now on?

[madhippy]

On an unrelated note, how long did it take folks to forget all about being a permie once they went contracting? It's only been 2 months but already I wonder how I managed as a permie.

I'm just about to make the leap from perm to contracting ... finding it a bit difficult with the 4 week notice period ... did you have similar problems ?

[DaveB]

Agreed - goes back to my consistent argument that people should not go contracting until they at least have a grasp of the rules and a pretty good bulltulip filter.

Thinking back to my permie days - A whole 2 months ago - there was no way I could claim expenses without a receipt. No receipt, no payment by the bean counters because they can't then set it gainst tax as a business expense for the company. Why people should belive it's differant just cos you're a contractor does make me wonder sometimes.

On an unrelated note, how long did it take folks to forget all about being a permie once they went contracting? It's only been 2 months but already I wonder how I managed as a permie.

[G8_Summit]

And the calculator doesn't work either.

Professional - not.

[malvolio]

OK, I'll go for it...from your website, front page:

Offered a job, but the company refuses to 'sponsor' your work permit?

If they haven't got a WP, how can they be offered a job? Eligibility to work here has to be established before the offer, remember... What do you know that we don't?

[Commonwealth Contractors]

Good Advice

I know that this is a plug and that we are one of the bad guys but we really do give honest advice to our clients. And we are always happy to talk through any situation even if you don't come on board as a client! And we don't let you claim things you're not allowed to. So please feel free to check out the website

www.commonwealthcontractors.com

and if you would like to have a chat call us free on 0800 294 4388.

(Please do not use the contact page on the website as it has got a bug, or so our developers tell us!)

[malvolio]

Also agreed. However I contend the market will split into two (if it hasn't already) - inside-IR35 people working through umbrellas or as true agency temps, and outside-IR35 people running some form of "real" business. The grey people, who have companies and composities purely as tax avoidance mechanisms and who would otherwise be inside IR35 since they are not trying to be businesses, are the ones who need to be re-classified into one or other grouping - and I have a feeling that is starting to happen.

[freshblue]

Agreed - goes back to my consistent argument that people should not go contracting until they at least have a grasp of the rules and a pretty good bulltulip filter.

But the nature of contracting has changed a great deal. To most of these it means nothing like it does to some of us, even the word contractor is outdated to the new entrants. The "jobs" they are getting are often sold as "like permie" and you need to sort some admin.... the economic climate has changed at the lower end, helpdesk and junior roles are chicken farms these days.

[malvolio]

Agreed - goes back to my consistent argument that people should not go contracting until they at least have a grasp of the rules and a pretty good bulltulip filter.

[freshblue]

I want to ask a question here as it has been bugging me.

How is it that when anyone reads all this "you can claim all these expenses without receipts" type of stuff that it doesn't immediately ring bells and occur to people that the if you haven't actually incurred the expense it isn't valid to claim it?

I genuinely don't understand how anyone gets themselves into this position.

The demographic of most people who ask this question seems to be mainly newbies... They are I guess "sold" by sharp practices and perhaps are happy to take the risks too....

[John Galt]

It's been said before but....if it seems too good to be true then it probably is. I use ContractorUmbrella and they make everything pretty straight forward - the way it was explained to me was if you haven't spent it then don't claim it.