Reply to: Help! Parasol - Confused about expences and not getting any help from them!

[malvolio]

A long long time ago they had some good people who could actually tell you exactly how the calculations were done.

... or perhaps in this case not being done since subsistence and travel are no longer allowable for employees. Although why they cant explain that in less than 15 minutes is beyond me...

[original PM]

A long long time ago they had some good people who could actually tell you exactly how the calculations were done.

[likewise]

AJXX - I would be more concerned at the moment if you are getting expenses reimbursed at all - as of 6th April no compliant umbrella company should be able to reimburse expenses, if you are eligible then they would have to be claimed with self-assessment at the end of the year. Just saying

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I do remember using Parasol back in 2009 before I went limited, was not impressed with them, it always sticks in my mind that I was advised before signing up with them that I would receive a certain amount and then what they actually paid me was far less, and when I called them to query it, their explanation of how they calculated things was so complex, you needed to have a PHD in finance and accountancy to work out what they meant, it seems things have not changed with them.

[lucyclarityumbrella]

I'm paid weekly by Parasol, but only receive £24 expenses with my pay. This means £76 per week of expenses are building up, unpaid. Between starting my contract and now; I've racked up circa £450 of expenses with Parasol, but as I'm only given £24 per week, I never seem to be getting my expenses back and the amount of expenses I'm 'owed' just seems to be building up and building up and I fear I'm never actually going to get this back.

AJXX - I would be more concerned at the moment if you are getting expenses reimbursed at all - as of 6th April no compliant umbrella company should be able to reimburse expenses, if you are eligible then they would have to be claimed with self-assessment at the end of the year. Just saying

[Yonmons]

the last couple of replies are what I would expect in response to this. Since 6th April this year the chancellor removed the rights for contractors utilising Umbrella Companies to claim travel and subsistence I ended my contract due to this I wasn't prepared to take the hit. In my case my fee would have been an expensive way of running my payroll

[lucyclarityumbrella]

I thought all brollys had to stop paying T&S as expenses now?

Theoretically, no umbrella company can process any non-chargeable expenses via salary sacrifice as of the 6th April, that said there are already "schemes" appearing to attempt to get around this. My advice is if any brolly is saying they can then be careful.

I also came across one today still putting expenses through as estimates on their calculator, then stating in the small print an assumption that there is no SDC and that the calculation is the figure they would receive based on the figures that could be claimed via self-assessment. So in reality not what you would see on your payslip at all!

[SlipTheJab]

I thought all brollys had to stop paying T&S as expenses now?

[AJXX]

That'll be it then.

Umbrella companies can only "re-imburse" expenses if there are available funds in your invoice value. From your invoice they need to fork out statutory obligations (Living Wage, Holiday Pay, Employer NIC) and then their margin. Anything left will be either paid as commission (taxable) or expenses (non taxable) so those expenses will carry forward indefinitely unless you get a better rate or work loads of hours. You can claim them on a P87 at the end of a year but you only get the tax relief on that rather than Tax and NIC relief if they are processed through the Umbrella.

To be honest you're one of the lucky ones if you're still able to claim expenses this new tax year as most are caught inside SDC.

Thank you for this comprehensive answer! This confirms more or less what Parasol have said in a previous communication, only explained 100 times better and actually makes sense - so thank you!

[VelcroPower]

First of all, thank you for actually helping instead of throwing around accusations that I'm somehow out to get Parasol!

My commission is 4p on my pay? I've been told they're carrying them forward - but I'm not sure exactly how far forward they're going to go, as I feel like I'm never going to get them back.

That'll be it then.

Umbrella companies can only "re-imburse" expenses if there are available funds in your invoice value. From your invoice they need to fork out statutory obligations (Living Wage, Holiday Pay, Employer NIC) and then their margin. Anything left will be either paid as commission (taxable) or expenses (non taxable) so those expenses will carry forward indefinitely unless you get a better rate or work loads of hours. You can claim them on a P87 at the end of a year but you only get the tax relief on that rather than Tax and NIC relief if they are processed through the Umbrella.

To be honest you're one of the lucky ones if you're still able to claim expenses this new tax year as most are caught inside SDC.

[BrilloPad]

Thanks, I've been dealing with one of their 'senior' advisors for the last week or so, unfortunately it's the same situation. No reply to emails for a day or so (they advise 4 hours usually) and then I send an email asking for an update, and then get a reply.

Again not slating them and not sure why the thread has turned into a bit of a which-hunt, I was just looking for a bit of advice whilst explaining my plight

Sorry you feel its a witch hunt. Sometimes contractors post stuff on here without giving the people they have a beef with a chance to respond.

Have you given them a call? Often its the best way to get quick help.

[AJXX]

We did used to have Steve@Parasol who was all over these types of threads and either looked in to the personally or got a senior operations to look in to them. Was a pretty fair service to be honest. He's been AWOL for 4 years now though which is a shame.

Thanks, I've been dealing with one of their 'senior' advisors for the last week or so, unfortunately it's the same situation. No reply to emails for a day or so (they advise 4 hours usually) and then I send an email asking for an update, and then get a reply.

Again not slating them and not sure why the thread has turned into a bit of a which-hunt, I was just looking for a bit of advice whilst explaining my plight

[northernladuk]

We did used to have Steve@Parasol who was all over these types of threads and either looked in to the personally or got a senior operations to look in to them. Was a pretty fair service to be honest. He's been AWOL for 4 years now though which is a shame.

[AJXX]

Sounds like your rate isn't sufficient to cover NMW and Holiday pay, Employer NIC (Employment Costs in Parasol language), their margin and your expenses. If they are carrying expenses forward that's the most likely explanation.

Do you get any commission above £0.01p in your pay? If not then that's definitely it.

First of all, thank you for actually helping instead of throwing around accusations that I'm somehow out to get Parasol!

My commission is 4p on my pay? I've been told they're carrying them forward - but I'm not sure exactly how far forward they're going to go, as I feel like I'm never going to get them back.

P.S. For the other guys, I'm definitely not trying to "slate" them, I'm just explaining why I'm asking on here and not them directly. I'm unable to call them most of the time as I'm contracted to work late hours and usually sleep during the day. More over, something like this I'd rather deal with via email anyway so I have a paper trail.

I've raised the issue of non-reply of emails with them directly, I'm not trying to hide anything!

I'm not sure why anyone needs to hear "the other side of the story", my issue is them not really replying to emails on time, something I've raised with them directly, I'm not full on slating them, I've come here to get sort of an independent opinion on the situation. I'm new to contracting and I have no idea if this is right or wrong, for all I know they could be robbing me, I'm just asking for a bit of support, not trying to bring down Parasol with some potty passive aggressive complaint!

[BrilloPad]

Now that is a good idea!!!

I remember ages ago a guy came on here slating parasol and rather amusingly parasol responded with the actual facts of the situation and left the OP looking a little daft. Calling out companies on forums can occasionally bite back lol.

Indeed. Another thread going on about umbrella companies today. Before deciding I want to hear from the other side.

Seems some contractors get funny about 0.3 of a day. Or doing something on facetime. There are plenty of problems out there without looking for them.

[northernladuk]

+1

Also, why not forward a link to this thread to them?

Now that is a good idea!!!

I remember ages ago a guy came on here slating parasol and rather amusingly parasol responded with the actual facts of the situation and left the OP looking a little daft. Calling out companies on forums can occasionally bite back lol.

That said doing a quick search on parasol brings back a sorry set of results...

https://www.google.co.uk/search?q=pa...actoruk.com%2F