Newby expenses question

[malvolio]

hmm a good tax accountant might be a start to get the general rules. Then an employment lawyer to look at the contract specifics I guess.

Agreed. But be very sure you have a clear and umabiguous definition of your new, temporary role and ensure that there are no common pieces of work between the two. That will be harder than you may imagine.

Also note that if you request an independent assessment of the VR agreement, your current client should be paying for it.

[Torran]

Ok, I'd better clarify. I am happy to be leaving and the VR was a bonus, as I would have been giving my notice in anyway. Timing is perfect.
I am moving over 200 miles from the currrent workplace and will be semi-retiring, drawing small pension and I should only need to work about 3 days a week. Yeah, I know, everyone else wants the same..!

My role will not be the same as before, as I am currently a team leader and would not be carrying any responsibility. The new role will be based specifically on set projects or pieces of consultancy.
I do agree that the reason they would want to contract me back is to utelise the skills that they lose when I go..
The Co HR dept is aware, and has been consulted and have said there there wouldn't be any issues. Now I'm concerned that they meant for THEM.... It sounds like there are more implications for me to consider.

Where should I go for advice? I clearly don't want to jeopardise my VR payment.

hmm a good tax accountant might be a start to get the general rules. Then an employment lawyer to look at the contract specifics I guess.

[JLo]

Ok, I'd better clarify. I am happy to be leaving and the VR was a bonus, as I would have been giving my notice in anyway. Timing is perfect.
I am moving over 200 miles from the currrent workplace and will be semi-retiring, drawing small pension and I should only need to work about 3 days a week. Yeah, I know, everyone else wants the same..!

My role will not be the same as before, as I am currently a team leader and would not be carrying any responsibility. The new role will be based specifically on set projects or pieces of consultancy.
I do agree that the reason they would want to contract me back is to utelise the skills that they lose when I go..
The Co HR dept is aware, and has been consulted and have said there there wouldn't be any issues. Now I'm concerned that they meant for THEM.... It sounds like there are more implications for me to consider.

Where should I go for advice? I clearly don't want to jeopardise my VR payment.

[MPwannadecentincome]

The implication of the original post is that the OP is going to be doing much the same kind of work -else why site visits, flights, blah-di-blah. And out of interest, I made three guys redundant in my last role, I'm fairly clear on the boundaries. It is very difficult to justify your new contract role being significantly different to your original one, especially if it is not offered to the market first. If the company still wants your local knowledge and skills, you aren't redundant. End of.

The whole idea stinks. If you want to freelance, do it properly and find a real client. If you want to keep your old job, don't take VR.

In this case, I agree with you.

When I took redundancy last year, I contracted for 2 weeks at the same company, different role, different location, so no problem in that instance.

[malvolio]

The implication of the original post is that the OP is going to be doing much the same kind of work -else why site visits, flights, blah-di-blah. And out of interest, I made three guys redundant in my last role, I'm fairly clear on the boundaries. It is very difficult to justify your new contract role being significantly different to your original one, especially if it is not offered to the market first. If the company still wants your local knowledge and skills, you aren't redundant. End of.

The whole idea stinks. If you want to freelance, do it properly and find a real client. If you want to keep your old job, don't take VR.

[MPwannadecentincome]

Wrong, wrong, wrong....

If you go back to your old employer in less than six months, you will be liable for 40% tax on your redundancy payment. And, of course, you will be so far inside IR35 it's not true.

Don't be stupid, walk away now before you get into real trouble.

I think this only applies if you go back to do the same role. If its a different role then should not be a problem.

Best to get advice - if you are getting redundancy you will have to sign an agreement which a lawyer should be checking anyway - you can ask them - btw the company should pay for the lawyer to check the agreement, if they do not and you do not get legal advice on your redundancy agreement they are exposing themselves to unfair dismissal claims as the courts view is that you 'could not have entered into the agreement and understood its implications without legal advice'.

[FarmerPalmer]

Wrong, wrong, wrong....

If you go back to your old employer in less than six months, you will be liable for 40% tax on your redundancy payment. And, of course, you will be so far inside IR35 it's not true.

Don't be stupid, walk away now before you get into real trouble.

WHS

[bassy]

Didnt someone fall for this trick a little while ago on here. Same story took redundancy and was told that they would take him on as a contractor and then a week or so later the company told him bye bye

[Lumiere]

Sounds like you will be caught by IR35.

\/

if I join an umbrella company

[malvolio]

Wrong, wrong, wrong....

If you go back to your old employer in less than six months, you will be liable for 40% tax on your redundancy payment. And, of course, you will be so far inside IR35 it's not true.

Don't be stupid, walk away now before you get into real trouble.

[RichardCranium]

My cynical head just kicked in.

Taking V.R. and leaving work shortly.

You leave all happy with no fuss and the minimum legal redundancy settlement.

After a month the company is willing to take me on as a contractor.

After a month your wife asks "When are they taking you on as a contractor?"

But they never do... and there is nothing you can do about it.

Don't fall for it.

[RichardCranium]

Taking V.R. and leaving work shortly. After a month the company is willing to take me on as a contractor.

And then you sue them for unfair dismissal.

You need advice. My guts tell me you are going to get screwed by the tax people if you go ahead.

[BrilloPad]

Sounds like you will be caught by IR35.

[Torran]

One month does not seem long enough to me to be honest. IANAL and I think you need advice on this. I would imagine that at best your expenses claims could be at risk and at worse it could have implications on the VR money.

I may be talking out my arse of course but someone on here will know from experience on the implications.

[JLo]

Very new to this as I've been an employee for the last 40 years... so please excuse the dumb questions.

Taking V.R. and leaving work shortly. After a month the company is willing to take me on as a contractor. I've agreed a rate that will include some limited expenses, and will be working from home and have agreed to include cost of limited travel to their office for meetings etc within the daily rate. The cost of longer distance travel (flights, accomodation, etc) will be charged extra as exceptional expenses.

My question is, if I join an umbrella company, can I separate out the expense claimed into ones to be charged to the client, and ones that are not to be charged, but to be used for tax relief purposes only?

As I will be working from home, can I claim (for Tax) a portional use of home, heating, telephone, broadband, etc)

Thanks in anticipation.