Everything you ever wanted to know about umbrella companies but were afraid to ask...

[malvolio]

SJD also do a contractors guide, which is good.

As do CUK, if you look over on the right. The most authoratative and unbiased one though is http://www.pcg.org.uk/cms/index.php?...759&Itemid=321, which was written by the experts.

[bid1]

info on umbrella companies

Can somebody help me here....... I am thinking of working in Saudi Arabia for an English based agency and will get paid into an English a/c. I have an NT code from revenue. Does IR35 affect me? I was thinking of getting an English umbrella company. What can I claim for and what tax implications do I have. Do I need to pay NI?
Tks

[multiuk]

So it seems that unless you are claiming expenses, then it is not worth joining an umbrella company?

And that you must pay the same amount of tax as you would direct with the agency?

Is this how umbrellas work?

Thanks

[Cowboy Bob]

So it seems that unless you are claiming expenses, then it is not worth joining an umbrella company?

The amount of expenses you can claim through an umbrella are exactly the same as those you can claim if you work via any other vehicle. If the umbrella tell you anything else, they are lying. Most will use their dispensation as an advertising point - you need to be very aware that the dispensation applies to them, not to you, and that all it means is that they don't have to record the expenses on their P11D form, it is not free money from Gordon Brown (as if he'd ever give money away) - this is very misleading, but nearly all of them try it on.

[ASB]

The amount of expenses you can claim through an umbrella are exactly the same as those you can claim if you work via any other vehicle. If the umbrella tell you anything else, they are lying. Most will use their dispensation as an advertising point - you need to be very aware that the dispensation applies to them, not to you, and that all it means is that they don't have to record the expenses on their P11D form, it is not free money from Gordon Brown (as if he'd ever give money away) - this is very misleading, but nearly all of them try it on.

As it happens a mate has just joined an umbrella for some agency work he is doing. He asked me about this and they were absolutely crystal about the 5 quid over night allowance etc. They said meals paid for at cost, up to x. So they are not all bad.

[TheFaQQer]

As it happens a mate has just joined an umbrella for some agency work he is doing. He asked me about this and they were absolutely crystal about the 5 quid over night allowance etc. They said meals paid for at cost, up to x. So they are not all bad.

£5 is allowed if you are working away from home and staying overnight. It's more if you are staying overseas.

Anything else has to be as incurred, and in line with HMRC guidelines / legislation.

[ASB]

£5 is allowed if you are working away from home and staying overnight. It's more if you are staying overseas.

Anything else has to be as incurred, and in line with HMRC guidelines / legislation.

£10 in those circumstances.

My point was that whilst in general we repeat ad nauseum "you've got to spend it - this is what the brolly doesn't say" this particulalr brolly also take that line.

[TheFaQQer]

£10 in those circumstances.

My point was that whilst in general we repeat ad nauseum "you've got to spend it - this is what the brolly doesn't say" this particulalr brolly also take that line.

Indeed - name and praise!!

[ASB]

Indeed - name and praise!!

Bit irrelevant really because they are unrelated to IT, also my experience is simply second hand. I've only seen the documentation they provide and not the reality of the service which may of course differ.

[MPwannadecentincome]

The amount of expenses you can claim through an umbrella are exactly the same as those you can claim if you work via any other vehicle. If the umbrella tell you anything else, they are lying. Most will use their dispensation as an advertising point - you need to be very aware that the dispensation applies to them, not to you, and that all it means is that they don't have to record the expenses on their P11D form, it is not free money from Gordon Brown (as if he'd ever give money away) - this is very misleading, but nearly all of them try it on.

Is this true? If so how do I persuade my umbrella to allow me:
1) expenses for a home office when working from home
2) interview expenses?

Cheers