• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

  • You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
  • You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
  • If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Previously on "Umbrella company and T&S expenses"

Collapse

  • malvolio
    replied
    Originally posted by bikeman View Post
    I am very confused by T&S claims. My brolly, Cloud9, says:

    A ‘permanent’ employee... working in one place cannot be reimbursed his/her expenses of travelling to and from work, without having to pay tax on them. A ‘temporary’ employee... working in one place for the length of the employment, is in the same position.

    But, a ‘permanent’ employee... whose job is to work on assignments in a succession of qualifying ‘temporary workplaces’ can be reimbursed those expenses, without having to pay tax on them. The purpose of the arrangements offered by an umbrella company is to be the employer for such employees, and to open the door to the employees being able to get the benefit of tax-free reimbursement of those expenses.

    Lucy says I have to have an intention to work multiple assignments through the brolly, but what happens if I have this intention but fail to get multiple assignments?
    Then you will owe some extra tax at year end.

    Leave a comment:


  • bikeman
    replied
    I am very confused by T&S claims. My brolly, Cloud9, says:

    A ‘permanent’ employee... working in one place cannot be reimbursed his/her expenses of travelling to and from work, without having to pay tax on them. A ‘temporary’ employee... working in one place for the length of the employment, is in the same position.

    But, a ‘permanent’ employee... whose job is to work on assignments in a succession of qualifying ‘temporary workplaces’ can be reimbursed those expenses, without having to pay tax on them. The purpose of the arrangements offered by an umbrella company is to be the employer for such employees, and to open the door to the employees being able to get the benefit of tax-free reimbursement of those expenses.

    Lucy says I have to have an intention to work multiple assignments through the brolly, but what happens if I have this intention but fail to get multiple assignments?
    Last edited by bikeman; 23 April 2017, 17:45.

    Leave a comment:


  • lucyclarityumbrella
    replied
    Originally posted by polagon View Post
    Thank you for clarifying this. Could you expand on "multiple assignments with the umbrella and that you were employed under an overarching contract of employment." - How would a longer 6 months contract with one employer fit into this.
    OK previously in order to be able to claim expenses, it had to be your intention to have multiple assignments whilst working under the umbrella company, ie when one came to an end that you would undertake another with the umbrella company. If you did not fulfil this then expenses for tax relief purposes were not allowable. So in your case, if you had only one assignment with the brolly then this becomes a permanent place of work, 2 assignments and you would be travelling to a temporary workplace - hence expenses were allowable. The overarching contract makes the link between the temporary workplaces.

    That said, as we haven't yet gone past the end of the financial year since the T&S Legislation was introduced, we have no idea how many contractors will be successful in submitting the claims on their SA.

    Leave a comment:


  • polagon
    replied
    Originally posted by lucycontractorumbrella View Post
    IF you are not deemed under SDC then the expense rules would be as they always were... you would need to show that you had multiple assignments with the umbrella and that you were employed under an overarching contract of employment.

    The expense rules originally covered travel and subsistence, so to and from you temporary workplace would have been allowable, receipted costs of meals (not a simple allowance) whilst on assignment. Only the calls would be allowable with the mobile providing you could prove they were business calls, the cost of the phone would not be allowable.

    HTH [emoji4]
    Thank you for clarifying this. Could you expand on "multiple assignments with the umbrella and that you were employed under an overarching contract of employment." - How would a longer 6 months contract with one employer fit into this.

    Leave a comment:


  • lucyclarityumbrella
    replied
    Originally posted by polagon View Post
    Can I add some questions here. Lets assume it's not under SDC. I have asked an Umbrella company about what expenses I can claim and how that would work. They have been somewhat shy with sharing absolute information to me. But they have mentioned that I will under my new contract role be able to:
    - Claim public transport expenses to and from my new office
    - Claim daily subsistences costs like food and drinks
    - Claim expenses on the cost of buying a new phone for my work. And I would receive 20%/40% back in the form of a tax refund (dependant on tax bracket I presume).
    IF you are not deemed under SDC then the expense rules would be as they always were... you would need to show that you had multiple assignments with the umbrella and that you were employed under an overarching contract of employment.

    The expense rules originally covered travel and subsistence, so to and from you temporary workplace would have been allowable, receipted costs of meals (not a simple allowance) whilst on assignment. Only the calls would be allowable with the mobile providing you could prove they were business calls, the cost of the phone would not be allowable.

    HTH [emoji4]

    Leave a comment:


  • Anonimouse
    replied
    I have worked for agent before, but they have never pushed parasol, but they were pushing expenses on PS role.

    Leave a comment:


  • eek
    replied
    Originally posted by Anonimouse View Post
    This confirms the approach from agent last week pushing me towards parasol.
    That will be due to size of kickbacks from Parasol to Agent....

    Leave a comment:


  • Anonimouse
    replied
    This confirms the approach from agent last week pushing me towards parasol.

    Leave a comment:


  • polagon
    replied
    Originally posted by eek View Post
    That doesn't sound right. What's the name of your umbrella?
    Parasol.

    Leave a comment:


  • eek
    replied
    Originally posted by polagon View Post
    Can I add some questions here. Lets assume it's not under SDC. I have asked an Umbrella company about what expenses I can claim and how that would work. They have been somewhat shy with sharing absolute information to me. But they have mentioned that I will under my new contract role be able to:
    - Claim public transport expenses to and from my new office
    - Claim daily subsistences costs like food and drinks
    - Claim expenses on the cost of buying a new phone for my work. And I would receive 20%/40% back in the form of a tax refund (dependant on tax bracket I presume).

    I've read plenty, the links in this thread and other + Googling. But still not sure if what they have mentioned is actually correct. Can someone please enlighten me.

    Many thanks,
    Penglund
    That doesn't sound right. What's the name of your umbrella?

    Leave a comment:


  • polagon
    replied
    Originally posted by lucycontractorumbrella View Post
    In simplistic terms if they are under a compliant brolly, then expenses cannot be processed at source. If they are NOT under Supervision, Direction and Control then they would have to process these via self-assessment at the end of the financial year. This may help explain, so please feel free to send this link on to them
    Can I add some questions here. Lets assume it's not under SDC. I have asked an Umbrella company about what expenses I can claim and how that would work. They have been somewhat shy with sharing absolute information to me. But they have mentioned that I will under my new contract role be able to:
    - Claim public transport expenses to and from my new office
    - Claim daily subsistences costs like food and drinks
    - Claim expenses on the cost of buying a new phone for my work. And I would receive 20%/40% back in the form of a tax refund (dependant on tax bracket I presume).

    I've read plenty, the links in this thread and other + Googling. But still not sure if what they have mentioned is actually correct. Can someone please enlighten me.

    Many thanks,
    Penglund

    Leave a comment:


  • lucyclarityumbrella
    replied
    In simplistic terms if they are under a compliant brolly, then expenses cannot be processed at source. If they are NOT under Supervision, Direction and Control then they would have to process these via self-assessment at the end of the financial year. This may help explain, so please feel free to send this link on to them

    Leave a comment:


  • northernladuk
    replied
    There are plenty of clear guides on the web and from what I see on a few of the Umbrellas they have pretty clear guidelines on their own pages. Here is one from CUK you might send them. Does that cover your point?

    Why it's all change for umbrella companies (and umbrella contractors) from April :: Contractor UK

    I think the problem might be more who they are using. Are they using some off shore scheme pretending to be an Umbrella or maybe they are using one of these that 'sponsor' them? If so their expenses are the very least of their problems.

    I do find it hard to believe that if they are with any reasonable outfit that is all above board the brolly will be letting them do anything bad.

    P.S We do have an Umbrella section you know. Need to improve the quality of your lurking

    Leave a comment:


  • Neil@Intouch
    replied
    This link should be useful, when discussing with your colleagues (Contractors' Questions: Does IR35 or using an umbrella affect T&S expenses? :: Contractor UK).

    Leave a comment:


  • mookiemoo
    started a topic Umbrella company and T&S expenses

    Umbrella company and T&S expenses

    As a long term lurker but not poster, I thought I fairly clued up on the new rules.

    Work through umbrella company = no T&S expenses before tax.

    I actually thought it was fairly cut and dried.

    i've always been limited so maybe I havent paid as much attention to the subtleties as I thought I had but....... the developers on site at my current project are pretty much all through a brolly. They are all being allowed T&C to be paid before tax.

    Seemingly the contractor sends the expenses in to the brolly who deduct it as a cost of employment before paying them the salary.

    Surely this is just bloody semantics and hector may well come calling with the KY asking them to touch their toes.

    Before I make myself look like an idiot and try to convince them otherwise - is the above true? Is there any specific link to where I can direct them if they refuse to believe me.

    Its no skin of my nose but we have a couple of junior developers (who probably shouldn;t be contractors anyway but that's another story) who are being swayed by the long in the tooth boys and frankly if the more experienced guys get shafted its on them but I feel sort of protective towards the kids.

Working...
X