Umbrella offering expenses?!

[cojak]

You are asking a bunch of random contractors questions and then showing your arse when someone gives you (possibly) incorrect answer? You are gonna be popular on here.

If you want expert opinion then **** off and ring round the brollies. Don't come on here looking for apologies from people who are trying to help you for free. Pillock

Are you gonna apologise to us for posting this in the wrong area of the forums? Should have been in the umbrella section? No? didn't think so.

I'll move it to the Umbrella sub-forum as he obviously is unaware of its existence...

[lucyclarityumbrella]

I'll move it to the Umbrella sub-forum as he obviously is unaware of its existence...

[eek]

And I'll take that as you coming back to us crying that you're out of pocket by 1st May 2021...

It may not be 1st May - only if the umbrella rejects the expenses will it be that early.

It wouldn't surprise me if the scream occurs in early June 2022 when HMRC sees the 21/22 P11D and goes expenses - nope they shouldn't have been allowed.

[lucyclarityumbrella]

Anyone got any real world examples (i.e. you are actually receiving expenses via an Umbrella) of Umbrella paying out expenses should as mileage, laptop costs, lunch, accomodation? I know this is subject to being able to demonstrate that you aren't under SDC (supervision, direction and control). Again anyone have experience how easy or otherwise this was? Who owns the risk should HMRC decide that you are under some form of control, you or the Umbrella? I assume its a personal liability?

OK let me give you some advice.... If you are deemed inside IR35, then HMRC are unlikely to see that you are not under SDC (this is not a definite but HIGHLY unlikely) and therefore you would not pass the SDC test. Those brollies that are quoting expenses are either assuming that you would pass and that you will be putting them through via self assessment at the end of the year rather than at source, OR they are operating mileage allowances and the fixed expenses - so you have to be able to fix an amount that they put aside each month as expenses, a whole other minefield. Either way as it is a personal tax relief, it is you that will predominantly be held liable. As for the laptop comment - never was allowable, those companies who were allowing them were not abiding by the rules. The expense had to be "incurred wholly for the purposes of the assignment" meaning the laptop would have had to be binned after the assignment was over - couldn't be used on another assignment!
HTHs

[eek]

OK let me give you some advice.... If you are deemed inside IR35, then HMRC are unlikely to see that you are not under SDC (this is not a definite but HIGHLY unlikely) and therefore you would not pass the SDC test. Those brollies that are quoting expenses are either assuming that you would pass and that you will be putting them through via self assessment at the end of the year rather than at source, OR they are operating mileage allowances and the fixed expenses - so you have to be able to fix an amount that they put aside each month as expenses, a whole other minefield. Either way as it is a personal tax relief, it is you that will predominantly be held liable. As for the laptop comment - never was allowable, those companies who were allowing them were not abiding by the rules. The expense had to be "incurred wholly for the purposes of the assignment" meaning the laptop would have had to be binned after the assignment was over - couldn't be used on another assignment!
HTHs

I think the actual issue is that the assignment isn't being deemed inside, the company is implementing a blanket ban on PSCs. Which is the type of grey space that all salesmen love to play with.

But as I said above I have reason to believe that HMRC will push a blanket ban = deemed inside by client argument.

[lucyclarityumbrella]

But as I said above I have reason to believe that HMRC will push a blanket ban = deemed inside by client argument.

With you on that one!

[gizzmo]

I'm with Parasol and this is what they have said regarding expenses:

"In relation to expenses claimable, I can confirm that all Parasol employees are able to claim business costs, which includes things like Electronic equipment, parking at or near the assignment, training, textbooks and manuals.
The costs of electronic equipment such as an iPad or laptop can be claimed for and reimbursed provided they’ve been bought entirely for the purpose of the assignment you’re working on and not for personal use.
You’re essentially buying these items on behalf of Parasol and so we reimburse 85% of the cost and retain a 15% security deposit to cover the cost of any damage that may arise to the item, including loss.
At the end of your employment we’ll give you the opportunity to buy the item for your personal or ongoing use.
The cost will be based on the second hand value, which is likely to be about 15% (including VAT) of the original purchase price.
However, the exact value will depend on the type, age and condition of the item. We’ll also offset the security deposit against the sale price.
You can submit your business costs and expenses on a weekly basis, even if you're paid monthly. You submit all your business costs and expenses via MyParasol.
Log on to MyParasol and head straight to the expenses and costs section and enter the item you want to claim for under the relevant category.
For example, a calculator will go under stationery, a laptop under electronic equipment. MyParasol will then prompt you for all the information we need, including the cost incurred, a receipt and any extra details required.
You can upload pictures of receipts directly to MyParasol. You can even do it on your smartphone or tablet.
Once you're happy click 'calculate'. Your claim will then be presented back to you and will be split in to 2 categories; claimed and logged.
Next click ‘submit’ so that we can check your claim.
Once we have checked and approved the claim, “claimed” items will be reimbursed in your next available payroll and “logged” items will be tracked so that we can provide you with all the information and help you need to make a tax refund claim from HMRC after the end of each tax year (5 April).
These are reimbursed from the invoice value, which reduces the amount of money that is subject to tax and national insurance deductions they are not an additional cash amount.

I hope this helps. If you require further assistance in the meantime, please do not hesitate to ask."

What they include under Electronics is a huge list of items like computer peripherals, headsets etc. My assignment which started a couple of months ago - the client is only providing access via VDI - so you have to use all your own equipment. My own laptop is 7 years old - and although I upgraded it to Windows 10 - its creaking - and so i asked the question re the expenses and that was the response I got. Essentially they take a 15% cut of the cost to process your expense by the sound of it.

[lucyclarityumbrella]

No words

[eek]

No words

+1 - words fail me...

[gizzmo]

No words

So are you saying what Parasol are doing is wrong?