Umbrella Company Relocation Allowance

[northernladuk]

Not something an umbrella company can process for you, as it wouldn't be deemed as only for the purposes of the assignment unless you move back again once it finishes

Wonder if it's sunk in to the OP yet?

[lucyclarityumbrella]

Not something an umbrella company can process for you, as it wouldn't be deemed as only for the purposes of the assignment unless you move back again once it finishes

[malvolio]

...
I would caution anyone considering any permanent job anything other than a "gig", in this climate it is likely you will move job and that may necessitate moving location. If you never push for relocation expenses you will never get them. To expand on why I am confident I do meet the criteria set out here: https://www.gov.uk/expenses-and-bene...n/whats-exempt (and I had a successful claim before).

Any job is a gig, although we usually refer the term to contract/freelance work. I do not understand the bold bit, but we are fairly good at recognising the difference between a permanent and contract position (unlike some, it seems).

And as I said at the outset, you can of course get relocation costs from your client - although the chances are vanishingly small - but it will still be part of your day rate and therefore not tax exempt. Especially as you've already blown the 24-month rule and, more importantly it fails the wholly and exclusively test.

Do let us know what happens though...

[northernladuk]

Thanks for the responses.

Most Umbrella companies I spoke to had never had a request to process a P11D form or relocation expenses, so hence the request here. I do have a IFA (that I pay for and will get clarity) but appreciate the feedback on the forum. I've found Umbrella companies to all be relatively simple offerings wanting to use the same approach to everything, understandably keeping costs down. Anything out of the ordinary is not offered, this isn't because it falls foul of HMRC but because it falls foul of their approach.

And there is a very good reason for it. They are just a payment vehicle for temp work. There approach is because it doesn't meet the HMRC criteria so I'd say your last line is incorrect. You cannot expect whoever to pay your relocation expenses every two years just because you get a temp gig somewhere else.

I would caution anyone considering any permanent job anything other than a "gig", in this climate it is likely you will move job and that may necessitate moving location. If you never push for relocation expenses you will never get them. To expand on why I am confident I do meet the criteria set out here: https://www.gov.uk/expenses-and-bene...n/whats-exempt (and I had a successful claim before).

You had a successful claim while you were perm at a company for the right reasons. A temp two year gig is not the right reasons.

The role I'm being offered is for 2 years, requires me to be based in a client office (in London), to clarify not at an Umbrella company location.

As many other contractors have had to do. It's what we do.

I don't understand the pessimistic approach on this board. I appreciate tax and employment law can be a grey area, it is very rarely black or white.

I'll keep you updated on how I progress, I am considering a permanent employee role so sadly the story may not play out.

Bearing in mind that duration even meets the two years rule for definition of a temporary location there is no chance that is considered as a permanent move or relocation. It's a temp residence for a temp gig. It's not gonna play out either way.

At best you are playing the system and it's wording to use it for something that was never meant to be used for. We cannot expect the gov/public purse to pay for us while we work away for temp gigs. What you are really doing is expecting an favourable tax position on your expenses while working at a different location at a brolly which is clearly not allowed.

[BR04DY]

Thanks for the responses.

Most Umbrella companies I spoke to had never had a request to process a P11D form or relocation expenses, so hence the request here. I do have a IFA (that I pay for and will get clarity) but appreciate the feedback on the forum. I've found Umbrella companies to all be relatively simple offerings wanting to use the same approach to everything, understandably keeping costs down. Anything out of the ordinary is not offered, this isn't because it falls foul of HMRC but because it falls foul of their approach.

I would caution anyone considering any permanent job anything other than a "gig", in this climate it is likely you will move job and that may necessitate moving location. If you never push for relocation expenses you will never get them. To expand on why I am confident I do meet the criteria set out here: https://www.gov.uk/expenses-and-bene...n/whats-exempt (and I had a successful claim before).

The role I'm being offered is for 2 years, requires me to be based in a client office (in London), to clarify not at an Umbrella company location.

I don't understand the pessimistic approach on this board. I appreciate tax and employment law can be a grey area, it is very rarely black or white.

I'll keep you updated on how I progress, I am considering a permanent employee role so sadly the story may not play out.

[northernladuk]

OP previously got relocation expenses for a move from England to Scotland for a previous employer (as a permanent employee). They've now convinced themselves that they are eligible to use Umbrella expenses to pay for them to relocate back to England, so as to save on tax, have found out that no Umbrella will support such a ludicrous idea, but have posted here in one last desperate attempt to see if there is a way.

No response since the original post, so i doubt we'll ever hear back.

Ahh yes. I missed the 'from' bit. My bad. It appears he's used it once and doesn't quite understand the new way he's working so expecting it again. Oh dear.

[Paralytic]

How can you have recieved relocation expenses from a previous employer but didn't move? Isn't that fraud depending on what tax benefits were gained from the expenses?

OP previously got relocation expenses for a move from England to Scotland for a previous employer (as a permanent employee). They've now convinced themselves that they are eligible to use Umbrella expenses to pay for them to relocate back to England, so as to save on tax, have found out that no Umbrella will support such a ludicrous idea, but have posted here in one last desperate attempt to see if there is a way.

No response since the original post, so i doubt we'll ever hear back.

[northernladuk]

Bearing in mind the location of the work being done is temporary by nature of the way we work I cannot see for one minute how relocation expenses will be allowed. The London work is just a gig that will end after a fixed period of time so connot be considered as permanent. I have to ask why the OP would consider relocating on that basis alone. Maybe they want to move to London as a lifestyle choice or it's where more work is but neither of those is a business justification. THey want to use a single gig to warrant a claim which just cannot happen surely. Locaiton of the umbrella is also irrelevant as they will never work at the Umbrella site.

How can you have recieved relocation expenses from a previous employer but didn't move? Isn't that fraud depending on what tax benefits were gained from the expenses?

Can't see how this one has a hope of flying.

[GhostofTarbera]

You will find the umbrella company you don’t currently work for has no requirement for you to work in London

good try though

[eek]

I'm confident I meet the HMRC criteria for the relocation allowance.

I'm very confident that you don't.

[ladymuck]

Does the role require you to be onsite because it is impossible to do the work remotely? And you said you'd be happy to permanently move the length of the country for a temporary job?

[malvolio]

OK, missed the non-IR35 option.... However I still struggle with idea of relocation expenses for a contractor. And I can see why an umbrella would struggle to account for it properly.

[Paralytic]

You do understand that under IR35 rules you are not allowed work-related expenses. And that you are not an employee of the umbrella anyway, merely a worker operating under PAYE, which changes the rules somewhat.

No-where did the OP mention IR35. Working through an Umbrella does not equate to inside IR35. Although, i'm not sure that changes anything here.

So you will get the money from the end client but it will be taxable as income.

I don't think the client is paying an extra £8K for this. I think the OP wants the Umbrella to include £8K of their day-rate-income as expenses on their payslip, so that its not taxed.

Assuming so, i'm not so sure the OP meets the HMRC criteria for the relocation allowance.

[malvolio]

You do understand that under IR35 rules you are not allowed work-related expenses. And that you are not an employee of the umbrella anyway, merely a worker operating under PAYE, which changes the rules somewhat.

So you will get the money from the end client but it will be taxable as income.

[BR04DY]

Can anyone advise a (reputable) umbrella company that will process a P11d as my employer to cover a £8000 relocation allowance?

I fully expect the costs to be recovered through my rate by the umbrella company, but there'll be a significant tax saving for me.

I currently reside in Scotland (having received relocation expenses from previous employer for the move from England) and looking to start a new position which requires me to work through an umbrella company in London. I'm confident I meet the HMRC criteria for the relocation allowance.

I have called multiple umbrella companies, responses have varied:

• No.
• Yes, then when asked for confirmation via email no .
• Submit a P87 (this will only cover up to £2500, not really what it is for).
• Complete a self assessment at year end.

I have searched through the treads and not found an answer but apologies if this has been covered.

Thanks

Broady