Reply to: Anyone used ADVANCE as an umbrella?

[Matt FPSGroup]

Is it 100% compliant and QC Approved?

The contractor is employed by a UK company and paid under standard PAYE with all payments made to HMRC. There are no trusts, loans, dividends or other wheezes to try and avoid tax, so no need for QC opinion. We like to keep things simple, compliant and priced at a level to make it worthwhile for the contractor. You could pick our operation up and put it in Manchester and our service offering wouldn't change at all… other than a longer commute for our staff!

[northernladuk]

You are absolutely right, the fee covers much more. You must agree however that customers need to feel that they are getting value for money? As our customers were having their take home pay impacted, we felt that putting their needs first and reducing our fee was the right thing to do. We have managed to do this with no compliance issues and an entirely onshore solution.

Is it 100% compliant and QC Approved?

[Matt FPSGroup]

You do realise that in order to operate a compliant umbrella company there are many more things that need to be taken into consideration other than T&S, the margin was not simply to be able to process expense payments and the employment law side of things is very costly, that is if you are operating wholly in the UK.

You are absolutely right, the fee covers much more. You must agree however that customers need to feel that they are getting value for money? As our customers were having their take home pay impacted, we felt that putting their needs first and reducing our fee was the right thing to do. We have managed to do this with no compliance issues and an entirely onshore solution.

[lucyclarityumbrella]

Following these changes, many operators have chosen not to reduce their fees in order to compensate contractors for their likely loss of T&S relief - it looks to me like Advance falls into this category.

You do realise that in order to operate a compliant umbrella company there are many more things that need to be taken into consideration other than T&S, the margin was not simply to be able to process expense payments and the employment law side of things is very costly, that is if you are operating wholly in the UK.

[lucyclarityumbrella]

Do the sensible thing and go with Contractor Umbrella. I bet their charges are within a couple of quid of the other, unknown, risky (?) company.

Thanking you

[missinggreenfields]

MSC company

Ah - a managed services company company. As long as they don't ask for your PIN number you should be safe.

[malvolio]

Fred, You’re absolutely right, the vast majority of expenses were stopped in April via the changes in travel and subsistence legislation and the changes to the finance act. The only expenses we allow contractors to offset on a weekly basis is business mileage, as that is not impacted by the above. We will however help contractors to obtain a rebate at the end of the year via their P87 – we will log all the expenses, keep copies of any evidence required and then complete the necessary paperwork for them to sign and submit. What we aim to do is bolster the product offering so that it isn’t just about tax savings – there’s more to an outsourced employment solution than that!

All the best
Matt

Words fail me...

[Matt FPSGroup]

Fred, You’re absolutely right, the vast majority of expenses were stopped in April via the changes in travel and subsistence legislation and the changes to the finance act. The only expenses we allow contractors to offset on a weekly basis is business mileage, as that is not impacted by the above. We will however help contractors to obtain a rebate at the end of the year via their P87 – we will log all the expenses, keep copies of any evidence required and then complete the necessary paperwork for them to sign and submit. What we aim to do is bolster the product offering so that it isn’t just about tax savings – there’s more to an outsourced employment solution than that!

All the best
Matt

[Fred Bloggs]

Fred and Matt, can I ask what MSC stands for please?

Also, I was under the impression that due to the SDC rules from April, certain expenses are longer allowed for umbrella employees yet that agency said there still maybe a way to claim these back.

Managed Service Company.

The revenue wants to stop employees claiming expenses, it is very clear. Any employee taking tax free expenses claims is, in my opinion, on very dodgy ground.

[northernladuk]

Fred and Matt, can I ask what MSC stands for please?

Also, I was under the impression that due to the SDC rules from April, certain expenses are longer allowed for umbrella employees yet that agency said there still maybe a way to claim these back.

You need to use the search method as described in the FAQ section and also have look around a bit. Both have been covered. Try reading some posts in the umbrella section for the answer to the expenses. MSC company can be found on Google if you can't find it using MSC site:forums.contractoruk.com

[mikat]

Begs the question then, if the employees are subject to PAYE then how can they claim expenses as that has been stopped for all other employees?

Fred and Matt, can I ask what MSC stands for please?

Also, I was under the impression that due to the SDC rules from April, certain expenses are longer allowed for umbrella employees yet that agency said there still maybe a way to claim these back.

[Fred Bloggs]

Begs the question then, if the employees are subject to PAYE then how can they claim expenses as that has been stopped for all other employees?

[Matt FPSGroup]

Fred, Contractors are employed by UK limited companies with UK banking arrangements – no money is transferred offshore. As the contractors aren’t directors and their money only ever gets paid to them under PAYE, there is no MSC risk at all. Flex is simply a low cost, simple and compliant PAYE solution. That’s why we are on the preferred supplier lists for most of the top agencies in the UK.

[Fred Bloggs]

Hi Mikat,

The weekly charge of £25.95 that they are asking for was about average before the April 2016 legislative changes. Following these changes, many operators have chosen not to reduce their fees in order to compensate contractors for their likely loss of T&S relief - it looks to me like Advance falls into this category. In my opinion it is difficult in most circumstances to justify fees as high as this for umbrella in the current market. There are many operators out there who have taken steps to significantly reduce their fees in adopting variable percentage rates for example, which for most contractors will charge significantly less than what Advance are looking for. FPS Group would be happy to help if you need any further guidance.

All the best
Matt

You're IoM based? I've read the brochure and it makes very interesting reading. The Flex arrangement has MSC written all over it IMO.

[Matt FPSGroup]

Hi Mikat,

The weekly charge of £25.95 that they are asking for was about average before the April 2016 legislative changes. Following these changes, many operators have chosen not to reduce their fees in order to compensate contractors for their likely loss of T&S relief - it looks to me like Advance falls into this category. In my opinion it is difficult in most circumstances to justify fees as high as this for umbrella in the current market. There are many operators out there who have taken steps to significantly reduce their fees in adopting variable percentage rates for example, which for most contractors will charge significantly less than what Advance are looking for. FPS Group would be happy to help if you need any further guidance.

All the best
Matt