Claiming expenses under brolly in IR35

[mudskipper]

Almost right

IR35 doesn't apply if you're working via a brolly - you're an employee of the brolly.

For tax relief on expenses under a brolly, the test is 'SDC' - are you subject to supervision, direction and control of the end client - which is only one of the 'employment' tests that IR35 considers.

If SDC does not apply, then you will probably have to claim back tax via your SATR.

I'm not sure what you mean when you say claim "straight through your end client". Unless your contract stipulates that your client reimburses you for expenses (pretty unusual, but not unheard of) then your expenses are nothing to do with them.

[Flips]

If SDC does not apply, then you will probably have to claim back tax via your SATR.

I'm not sure what you mean when you say claim "straight through your end client". Unless your contract stipulates that your client reimburses you for expenses (pretty unusual, but not unheard of) then your expenses are nothing to do with them.[/QUOTE]

Thanks for your response. I will be classed as SDC. I just read something in a post or two about mileage expenses (travelling from temp base throughout the day) being paid directly from the client (in my case the local authority I'll be working at). So far I'm used to submitting mileage claims on two systems - one with the agency and one with the umbrella - which is a bit more hassle so wanted to check if people usually bypass this and get it paid directly. I presume the usual way is through your umbrella.

[Flips]

If you're inside IR35 what I and PG both said is correct and the entire answer. However, your other comments about umbrella company usage and using the other LtdCo took rather more unravelling than I had time for.

If I assume you have two gigs, one for Danbro and one through the other Ltd, then expense through Danbro depends on their policy but will be (or damned well ought to be be) what we said. Through the Ltd, presumably for a separate gig, we can't comment since we don't know its policy nor your relationship with it If, for example, you are a genuine employee then the umbrella rules will apply again but if you're just getting them to raise an invoice for you and then pay you net of PAYE and NICs then it's their call, or if you are a shareholder there are other options...

So don't bitch about not getting black and white answers when you haven't tried to explain the situation clearly enough to give one. It's not like we don't try to answer similar questions based on partial information every few days after all.

But think positively. NLUKs's answer would have been either use the links over on the right where your answers will be found with a little effort, or ask your accountant. Which is again accurate advice, just not all that helpful if you want a one line response

Hope that clarifies...

I have used a little effort but wanted more clarity. I'd hope that when you post on here responses can be less condemning of the person who is asking and their 'misapprehensions'. This is why I'm asking the question in the first place. I understand it's impossible to give black and white answers without a clear question. I just didn't want to find out six months down the line that I should have been submitting lunch receipts or wfh allowance through my brolly and hadn't been bothering. Getting an accountant is on my list, I've been perm all my career until recently. Thanks for your fuller response.

[mudskipper]

Apologies - I have just re-read your post and realised you are talking about travel from the client base to temporary locations, not from home to client base.

In that case the expenses should be allowable - the 'SDC' rule does not apply to temporary locations other than your client base. It might be worth checking with your umbrella on how they should be reclaimed. If the client is reimbursing the expenses, then it may be fine to pay you directly though their expenses system.

[lucyclarityumbrella]

OK, let me see if I can set the records as straight as possible...

1. Under SDC, no non-chargeable expenses (ie ones for tax relief) via the brolly
2. Client base to meeting - chargeable from brolly to agency to end client (must go through brolly as they are incurred because of the assignment they are contracted to) repaid and not taxed
3. Home to client base - end client can agree to pay these (although payment must go through the brolly), but the brolly will tax them as they are deemed a benefit that an employee would not normally be entitled too

HTH's

[malvolio]

How come you can say in three lines what I failed to do in many more... I must be losing my touch.

[lucyclarityumbrella]

I must be losing my touch.

[LondonManc]

How come you can say in three lines what I failed to do in many more... I must be losing my touch.

There's a lovely six-yard tap-in about Lucy's touch if we were in General.

As it is, that's why people recommend Lucy and her team at Contractor Umbrella.

[northernladuk]

There's a lovely six-yard tap-in about Lucy's touch if we were in General.

As it is, that's why people recommend Lucy and her team at Contractor Umbrella.

And for the i-Pads...

[LondonManc]

And for the i-Pads...

Vote Lucy!!!!