Pay Breakdown - Umbrella Company - £130pd - your thoughts on my takehome pay?

[LondonManc]

10 quid a day for food?? Really?

Umbrella works different.

[LisaContractorUmbrella]

Umbrella works different.

No it doesn't

[LondonManc]

No it doesn't

It did for me. I'm not claiming for meals at the moment. Is that bad advice from my accountant?

[LisaContractorUmbrella]

It did for me. I'm not claiming for meals at the moment. Is that bad advice from my accountant?

Not necessarily - the £10 per day thing comes from some umbrella companies operating scale rates according to their dispensations but you still have to have incurred a cost, in the appropriate circumstances, in order to be able to claim for food.

[northernladuk]

Not necessarily - the £10 per day thing comes from some umbrella companies operating scale rates according to their dispensations but you still have to have incurred a cost, in the appropriate circumstances, in order to be able to claim for food.

I assume you mean if you incurr $2 you have to claim $2. Not if you incurr it you can claim the full rate?

[LisaContractorUmbrella]

I assume you mean if you incurr $2 you have to claim $2. Not if you incurr it you can claim the full rate?

No, oddly with scale rates you can pay out that amount without there necessarily being that amount spent - so, if you spend £6.50 you could still claim £10. The idea was introduced initially for HMRC staff who got £5 per day I think simply because the bean counters at HMRC got fed up with filling out paperwork for £3.50 or £4.95 claims from Starbucks or whatever. Some umbrella companies picked up on it when it was rolled out to business - you just had to provide, say, 3 months worth of sample receipts for meals from your workforce and then an average would be taken and the scale rate applied accordingly. We never did it as it's extremely difficult to police once the system's in place and some companies really took the mickey by submitting the highest receipts they could get their hands on and submitting them as 'average' expenditure hence why it's not seen very often now