mileage expenses

[LisaContractorUmbrella]

You can only claim the permissible mileage rate as an expense - as of April 2011 this is 45p per mile - anything else would be subject to tax. Your umbrella company should have picked this up but I would notify them now and ask them to make an adjustment to correct

[Sockpuppet]

sorry yes i was invoicing the client through the umbrella company as the mileage was payable expense outlined in the contract.

Sorry but i was told that i am an employee of the umbrella company so i shouldnt have to put in a tax return .

am i right here or not ?

Right that's a bit different. What your brolly charge and what they pay you are two different things. Claiming at 40p is fine though you should really ask for them to pay it at 45p which is the new rate approved by HMRC.

[The Spartan]

sorry yes i was invoicing the client through the umbrella company as the mileage was payable expense outlined in the contract.

Sorry but i was told that i am an employee of the umbrella company so i shouldnt have to put in a tax return .

am i right here or not ?

You're classed as an employee of the Umbrella company so no you don't need to file a tax return

[ASB]

sorry yes i was invoicing the client through the umbrella company as the mileage was payable expense outlined in the contract.

Sorry but i was told that i am an employee of the umbrella company so i shouldnt have to put in a tax return .

am i right here or not ?

Whether or not you need to put in a tax return is dependant upon a number of circumstances. Some detail here.

HM Revenue & Customs: Do you need to complete a tax return?

If you are not actually required to file a tax return you can still file one if you have expenses you want to claim on it.

What your umbrella is prepared to pay you for mileage and what the end client or agency is prepared to pay are two different things (though if they are different then there is likely to be some confusion).

[bradhilt]

sorry yes i was invoicing the client through the umbrella company as the mileage was payable expense outlined in the contract.

Sorry but i was told that i am an employee of the umbrella company so i shouldnt have to put in a tax return .

am i right here or not ?

[The Spartan]

Some expenses are chargeable to the client, but would be done via the agency or umbrella company. They're meant to deal with all your affairs

[ASB]

I wouldn't claim the extra 20p from the Umbrella. Instead when you do a tax return stick down the mileage and claim the tax back on it (same as getting 40p per mile).

Except for NI. That is not affected by the claim though the SATR. From a cost point og view getting the claim deducted from the gross salary is best.

[northernladuk]

There is a section of the forum dedicated to questions about Umbrella's which can be found here..

Umbrella Companies

You might find some useful information in there

[Sockpuppet]

You shouldn't be claiming mileage direct from the client. You don't work for them, you work for the umbrella.

I wouldn't claim the extra 20p from the Umbrella. Instead when you do a tax return stick down the mileage and claim the tax back on it (same as getting 40p per mile).

[bradhilt]

Also
i send my receipts in with my expenses claim form to the umbrella company . should i be keeping these originals for my own records ? do i need to keep them at all ?? as far as im aware im an employee of the umbrella company so they should hold these records . am i being nieve ???

[bradhilt]

It looks as if my umbrella company has been helping me evade tax !! I must state that i was completely unaware this was happening until just now .
when claiming mileage i have been invoicing my agency @ 20p per mile and then submitting mileage expenses on my umbrellas web portal @40p per mile .
is it right that i should only be raising the expenses with the umbrella company for 20p per mile as i am already claiming 20p per mile direct from the client ???