Claiming umbrella fee

[LisaContractorUmbrella]

That's ok (sniff) Kingcook, I understand (sniff), I know it's not (sniff) personal

[kingcook]

I have searched quite a bit for this, and remember this is Business not general so play nice.

As an Umbrella employee can I claim my actual umbrella fee as a taxable expense?

The umbrella gets paid by the client or agency.

You get paid from the umbrella (as an employee of the umbrella).

A great reason to avoid using umbrella companies - you're still a gimp who isn't in charge of their own destiny.

(EDIT: Sorry LisaContractorUmbella, it's just the way I feeel about brollies!)

[LisaContractorUmbrella]

I do not have a company as yet, hence the umbrella. I have not rang them yet but I guess you allready knew that. Hence your next question, why not ring them?

I thought I would ask on the boards, I am starting now to see that was probably a bad idea..

An umbrella company retains a margin from the contract rate - this is their income or revenue - they then make payment to HMRC for Employer's NIC's, the balance is your salary. Over and above that you may be able to claim tax relief on certain costs if they are eligible to be processed as expenses. So, in answer to your question, there is no expense and therefore you cannot claim tax relief.

[malvolio]

I thought I would ask on the boards, I am starting now to see that was probably a bad idea..

Ignore the rabble, you've been given the answer. But since I just picked up what you were asking (always helps to give all the details, doncherkno), you can't claim the umbrella fees as part of the setup of a new company, it fails the wholly and exclusively test by some margin.

[northernladuk]

I thought I would ask on the boards, I am starting now to see that was probably a bad idea..

I was just adding a bit of confusion for a giggle as it was in the wrong thread. Don't mean to put people off posting (well not all of them).

Would have been more useful to post in the right section though. Might have caught the eye of our umbrella goddess who will have answered your questions no problem.

[eek]

I wouldn't let NLUK put you off from asking questions, self-help is obviously good but the point of a forum is that not only does it help you but it helps others in the future who might view it.

I'm going to reboot NLUK, he's been running for a while now and it's showing with him trying to factor in Ltds to Umbrellas. He'll be back to asking everybody if they're cut out to be a contractor in no time.

So are you sure you are cut out to be a contractor?

Are you, really?

Are you sure about that answer?

[GazCol]

I do not have a company as yet, hence the umbrella. I have not rang them yet but I guess you allready knew that. Hence your next question, why not ring them?

I thought I would ask on the boards, I am starting now to see that was probably a bad idea..

I wouldn't let NLUK put you off from asking questions, self-help is obviously good but the point of a forum is that not only does it help you but it helps others in the future who might view it.

I'm going to reboot NLUK, he's been running for a while now and it's showing with him trying to factor in Ltds to Umbrellas. He'll be back to asking everybody if they're cut out to be a contractor in no time.

[Tasslehoff]

Why don't you post this in the Umbrella section?

Is the umbrella fee paid by your company out of company funds or is it paid by you personally for the service of the umbrella? When you rang them to ask them this (being your employer and all that) what did they say?

I do not have a company as yet, hence the umbrella. I have not rang them yet but I guess you allready knew that. Hence your next question, why not ring them?

I thought I would ask on the boards, I am starting now to see that was probably a bad idea..

[DirtyDog]

Why don't you post this in the Umbrella section?

Is the umbrella fee paid by your company out of company funds or is it paid by you personally for the service of the umbrella? When you rang them to ask them this (being your employer and all that) what did they say?

If it's an umbrella fee, there is not company to pay the expense

It's not an expense, IMO - who would you be looking to claim it back from?

[malvolio]

Perhaps you need to understand how umbrellas work a little better. At its simplest, they deduct valid expenses from your gross (i.e. what the agency pays the umbrella for your services) then treat the balance as your gross salary for tax purposes. You don't actually claim anything, and the BIK is already covered.

Their fees will be included in the expenses deduction, unless the umbrella is doing something very silly indeed.

[northernladuk]

I have searched quite a bit for this, and remember this is Business not general so play nice.

As an Umbrella employee can I claim my actual umbrella fee as a taxable expense?

Why don't you post this in the Umbrella section?

<no one found it funny, removed>

When you rang them to ask them this (being your employer and all that) what did they say?

[Tasslehoff]

I have searched quite a bit for this, and remember this is Business not general so play nice.

As an Umbrella employee can I claim my actual umbrella fee as a taxable expense?