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Umbrella offering expenses?!

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    #51
    Originally posted by eek View Post
    Following on from the workshop I attended on Friday - I actually think Parasol are right and can allow hardware purchases for the purposes of the project.

    The devil is in the detail but it is clear that materials used for the project can be deducted before deemed payments are made and that must equally apply to umbrella firms.

    Now it wouldn't surprise me if HMRC tried to reject the claim and took it to court and it may seem completely strange it also makes sense given the actual rules and making the assumption that

    1) the hardware is for that project (so computer, phone, iPad fine - washing machine probably not).
    2) the hardware is disposed of (via reselling) at the end of the project.

    The fact the hardware ends up in the workers hands at a lower price doesn't seem to have occurred to HMRC...

    I'm not sure that a 3 month old iphone is worth just 15% of the original purchase price though - and VAT handling would be a very interesting thing to investigate.
    Buy new laptop through LTD, sell it back to contractor at start of an inside gig, sell back to LTD at end of gig. Start new gig, buy it back from LTD and so on.
    If you can't be bothered with that the LTD leases it to contractor for each gig.

    Could be a nice little money spinner that.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #52
      Originally posted by northernladuk View Post

      Buy new laptop through LTD, sell it back to contractor at start of an inside gig, sell back to LTD at end of gig. Start new gig, buy it back from LTD and so on.
      If you can't be bothered with that the LTD leases it to contractor for each gig.

      Could be a nice little money spinner that.
      It doesn't work like that

      The approach is - buy laptop from Currys with money deducted from first pay pocket.

      Asset is owned by umbrella

      On completion of project the materials are then disposed of (i.e. sold to the worker who wanted them in the first place).

      Anyone who is used to purchase vouchers from perkbox and co will know why Currys is in the picture here.
      merely at clientco for the entertainment

      Comment


        #53
        Originally posted by eek View Post

        It doesn't work like that

        The approach is - buy laptop from Currys with money deducted from first pay pocket.

        Asset is owned by umbrella

        On completion of project the materials are then disposed of (i.e. sold to the worker who wanted them in the first place).

        Anyone who is used to purchase vouchers from perkbox and co will know why Currys is in the picture here.
        Bah Back to having to work for a living.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #54
          Originally posted by eek View Post
          I'm not sure that a 3 month old iphone is worth just 15% of the original purchase price though
          Yeah, that reminds me of the cycle to work scheme. Companies can sell bikes to employees at the end of the rental period, and in the early days it was standard to charge 5% of the original purchase price. Then HMRC said that was unrealistic, as per the valuation table on this page:
          EIM21667A - Employment Income Manual - HMRC internal manual - GOV.UK (www.gov.uk)

          If the rental scheme lasted for a year, then the acceptable disposal value is 18% (for a bike that cost less than £500) or 25% (for a bike that cost £500 or more). That means the company either has to sell the bike for that much, or they can sell it for less and treat the saving as a BIK.

          I suspect that a similar thing will happen for iPhones etc.

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            #55
            Originally posted by hobnob View Post
            I suspect that a similar thing will happen for iPhones etc.
            Phones have been an accepted exception for many years and are integral to work, LTD, self employed or perm so I don't think they'll change at all. Virtually everyone on earth has one now and are not a business benefit now.

            And I think you mean just 'phones' and not iphones.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

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