Reply to: Umbrella and expenses in tax year 2016/2017

[Yonmons]

I had expenses to submit for Monday/Tuesday prior to the 6th April Wednesday, log into paystreams website on the Friday to submit them on Friday ( what I have done for 10 months) to find they have killed the expenses portal submission, with a message to return tomorrow which I did to find yes you guessed it I can't submit the expenses for Monday Tuesday, anyway sod it, at least with no expenses submitted for my final week I will see what the full hit will be on my take home on Friday. ( now feet up and on the bench looking for local work)

[lucyclarityumbrella]

- Is it correct that if they pay my salary for previous financial year they don't have to pay my expenses?

If your expenses were incurred pre 6th April and they had not processed the payment before that date, then they would not have been able to process them in the normal way. Unfortunately you will now have to put these through on a self-assessment if you want to get the tax relief back on them

[mudskipper]

Your tax allowance is spread over the tax year - you can't 'carry forward', so if your income this tax year so far is higher than it would normally be, the calculation will assume that you are going to be earning that every week and deduct tax accordingly. But it should even out over the next few weeks when your earnings are lower.

[aphrodita]

I've never heard of Crest Plus and can't answer your expenses questions but your tax will be sorted out properly when you fill in your tax return. In the meantime, I'd move brollies to the one recommended here.

Thank you, I saw other ones, and I chose Crest because they are on Hays' list.... I just want to know if the story about the tax relief per week is true or not....

[Fred Bloggs]

I've never heard of Crest Plus and can't answer your expenses questions but your tax will be sorted out properly when you fill in your tax return. In the meantime, I'd move brollies to the one recommended here.

[aphrodita]

Am I being scammed by Crest Plus?

I have submitted two time sheets:
- 21st March - 25th March (week 51, which will be paid in week 52)
- 28th March - 1 April (week 52, which will be paid out in week 1 of new financial year)

My manager was too slow to approve first time sheet, thus Crest Plus decided to pay me both time sheets in 1 payment (and it seem deliberately did not pay first time sheet on Monday 28th as they normally would). This was the reason they denied me any expenses for week 52 saying new rules apply.

Having combined 1 time sheets, they provided me with 1 payment slip however they deducted double income tax from my salary. Where I would normally pay £79/week income tax, for combined 2 weeks they charged me £306!!! That's double income tax for each week.

This said, by combining 2 time sheets, they applied 43% tax (all taxes) to my salary, while normally it would be 30% flat rate tax.

They explained this higher (double) income tax deduction is because any allowance of £11k/year divided by 52, thus my tax-free allowance is £211/week. Because my 2 time sheets were paid in the same week, the amount of tax is much higher as my perceived salary for a week doubled (and tax relieve remained £211).

- Is it correct that is I am being paid for week 52 of previous financial year in a 1st week of a new financial year, new rules apply?
- Is it correct that if they pay my salary for previous financial year they don't have to pay my expenses?
- Is it correct that the tax relief is £211/week and they allowed to tax me maximum by combining 2 time sheets?
- I pay £30/week to them to do my calculations. Do they have right to deny making 2 separate pay slips for each week? I asked 5 times and 5 times they said they can't

Thank you very much for everybody's answer..... feel a bit ripped of..

P.S. - while combining 2 time sheets and making it look like I worked double-hours in 1 week:
- they deducted 4x income tax
- decudeted 2x Employer's / Employee's NI
- 2x pension contribution
- 2x holidays pays

[LisaContractorUmbrella]

Do you think they will GAS? It's all part of the master plan!

No, they won't GIS, definitely not. Master plan implies intelligence and aforethought - can we just call it the latest dog's breakfast?

[SlipTheJab]

I do hope that HMRC read this - we've been trying to get this message across for months

Do you think they will GAS? It's all part of the master plan!

[SlipTheJab]

Unemployment benefit! If I cannot claim for travel then I cannot afford to work.

...Paging PC...

[LisaContractorUmbrella]

Long term contractor myself on this GIG I have been using Umbrella, but I cant afford to take the expenses hit come April 6th, its to much for me to lose, I commute 108 miles a day (I choose to do it I know) but its been a good gig and the 4th time I have worked for this bank. But I am done, its only work locally from now April, or go Ltd yet again. Its a pity the next project we will be working on would be good to get on the CV. Ahhh well bench will be nice in the spring and summer.

I do hope that HMRC read this - we've been trying to get this message across for months

[Yonmons]

Long term contractor myself on this GIG I have been using Umbrella, but I cant afford to take the expenses hit come April 6th, its to much for me to lose, I commute 108 miles a day (I choose to do it I know) but its been a good gig and the 4th time I have worked for this bank. But I am done, its only work locally from now April, or go Ltd yet again. Its a pity the next project we will be working on would be good to get on the CV. Ahhh well bench will be nice in the spring and summer.

[LondonManc]

Interesting related article on this site today penned by Marc Scott, director of umbrella company Liberty Bishop.
Why it's all change for umbrella companies (and umbrella contractors) from April :: Contractor UK

For virtually all umbrella workers it looks like ALL expenses are now doomed after April 5th.
Further, if it can be proved that expenses are due (difficult, pain-in-the-ass for all involved), they can only be claimed 'en-mass' at the END of the tax year via a tax return .. most people who complete a tax return submit one online in the last week of January.

The comfortable model of working via an umbrella being paid weekly; claiming travel, accommodation and other expenses applied weekly is history.

I suspect that most of those who choose to work through an umbrella will simply 'forget about expenses-too much hassle', instead they'll only be looking for contracts 'near' to home.

I'd say that it depends. I'd still consider London but I'd imagine that those in the South East wouldn't be able to be as mobile. It's then up to me to decide what budget I do London gigs on (there are still cheap enough ways to make it far more profitable than a gig up north for example).

However, it does make the comparison closer.

[LisaContractorUmbrella]

Interesting related article on this site today penned by Marc Scott, director of umbrella company Liberty Bishop.
Why it's all change for umbrella companies (and umbrella contractors) from April :: Contractor UK

For virtually all umbrella workers it looks like ALL expenses are now doomed after April 5th.
Further, if it can be proved that expenses are due (difficult, pain-in-the-ass for all involved), they can only be claimed 'en-mass' at the END of the tax year via a tax return .. most people who complete a tax return submit one online in the last week of January.

The comfortable model of working via an umbrella being paid weekly; claiming travel, accommodation and other expenses applied weekly is history.

I suspect that most of those who choose to work through an umbrella will simply 'forget about expenses-too much hassle', instead they'll only be looking for contracts 'near' to home.

I think you've hit the nail on the head

[seanraaron]

I suspect that most of those who choose to work through an umbrella will simply 'forget about expenses-too much hassle', instead they'll only be looking for contracts 'near' to home.

I already do this, but then I'm lucky I got a contract in the city I live in. Most of the financial gigs in Scotland are in Edinburgh and the Glasgow-Edinburgh rail commute is the most expensive in Scotland, I believe, so I'd have to get a much better rate to justify that if I couldn't expense it. Needless to say I'll always be open to the possibility of going back to perm - assuming I can earn at least my old salary.

A lottery win would really simplify things...

[SunnyInHades]

Interesting related article on this site today penned by Marc Scott, director of umbrella company Liberty Bishop.
Why it's all change for umbrella companies (and umbrella contractors) from April :: Contractor UK

For virtually all umbrella workers it looks like ALL expenses are now doomed after April 5th.
Further, if it can be proved that expenses are due (difficult, pain-in-the-ass for all involved), they can only be claimed 'en-mass' at the END of the tax year via a tax return .. most people who complete a tax return submit one online in the last week of January.

The comfortable model of working via an umbrella being paid weekly; claiming travel, accommodation and other expenses applied weekly is history.

I suspect that most of those who choose to work through an umbrella will simply 'forget about expenses-too much hassle', instead they'll only be looking for contracts 'near' to home.