First of all, I apologise for this being a long post but not being an accountant I feel I need to give all the info I can.
I began a short term contract at the end of June this year and ended yesterday (23rd Sept.) For the past 2 months I have been travelling to London by train from the North West on a weekly basis, staying in a B&B throughout the week and logging my expenses weekly with the Umbrella online portal. To process these however I was advised that I would need to send hard copies of my train tickets and accommodation receipts. This I did yesterday but I have been advised today that they will not process any of them for this reason below:
As we have been made aware that your last working day is 23rd September 2015, HMRC automatically deems your client site your permanent place of work from the point you have given us notice.
As we are aware that it is your intention to leave our services we are unable to offset any further expense claims from future payments despite the expenses being purchased before the last working day. This is known as the fixed term appointment rule.
Please see attached travel allowances and expenses guidelines for reference to the fixed term appointment rule. Unfortunately we have to abide by the ruling to remain compliant with HMRC’s current legislation.
I can confirm that although we are unable to offset an expense claims, you are able to reclaim the taxable benefit of these expenses by completing a P87 form at the end of the tax year (5th of April 2016).
This has never happened to me before and I've been with the same Umbrella for 2 years over 3 separate contracts. In short they have said instead of asking for my P45, if I stay with them they will process my expenses when I obtain another contract - is this BS or what?
I began a short term contract at the end of June this year and ended yesterday (23rd Sept.) For the past 2 months I have been travelling to London by train from the North West on a weekly basis, staying in a B&B throughout the week and logging my expenses weekly with the Umbrella online portal. To process these however I was advised that I would need to send hard copies of my train tickets and accommodation receipts. This I did yesterday but I have been advised today that they will not process any of them for this reason below:
As we have been made aware that your last working day is 23rd September 2015, HMRC automatically deems your client site your permanent place of work from the point you have given us notice.
As we are aware that it is your intention to leave our services we are unable to offset any further expense claims from future payments despite the expenses being purchased before the last working day. This is known as the fixed term appointment rule.
Please see attached travel allowances and expenses guidelines for reference to the fixed term appointment rule. Unfortunately we have to abide by the ruling to remain compliant with HMRC’s current legislation.
I can confirm that although we are unable to offset an expense claims, you are able to reclaim the taxable benefit of these expenses by completing a P87 form at the end of the tax year (5th of April 2016).
This has never happened to me before and I've been with the same Umbrella for 2 years over 3 separate contracts. In short they have said instead of asking for my P45, if I stay with them they will process my expenses when I obtain another contract - is this BS or what?
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