Umbrella offering expenses?!

[eek]

So are you saying what Parasol are doing is wrong?

Well I can see what they are doing but the idea was closed off back in 2016 https://www.thisismoney.co.uk/money/...crackdown.html

[NotAllThere]

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!

Why is it the assignment, rather than the length of time working via that brolly? If the brolly were an ordinary employer, say a consultancy, they might well supply a laptop for multiple assignments. Obviously, when you leave the brolly, you either have to buy the laptop off your employer, or give it up. (I can understand why brolly's would want to do this, as they don't want to be stuck with a bunch of laptops, and they can't force the (ex-) employee to buy it).

I don't doubt your expertise for a minute - I was just wondering.

[sira]

What I dont understand here is, how is Parasol (one of the biggest umbrellas), doing something that is supposedly illegal?

[eek]

What I dont understand here is, how is Parasol (one of the biggest umbrellas), doing something that is supposedly illegal?

Because a lot of the umbrella companies come from the dodgier side of the industry (it's where they got the original megabucks that allowed them to expand).

Plus it's all a sales pitch to get you to sign up before they inevitable say - sadly you don't qualify once you've committed to being with them for x months.

[gizzmo]

What I dont understand here is, how is Parasol (one of the biggest umbrellas), doing something that is supposedly illegal?

They are making 15% minimum cut on your expenses - so they have a vested interest. They are constantly prompting me not to forgot to claim my expenses. Their list of allowable expenses is very long. I actually don't doubt that they do pay as they explained, however as a basic rate taxpayer - with them taking min 15% - its really not worth my while. I can see how a higher rate tax payer might see the benefit though. I have also had confirmation from other Parasol "employees" who have successfully claimed.

[northernladuk]

I have also had confirmation from other Parasol "employees" who have successfully claimed.

We know a lot of MP's that claimed expenses as well. Doesn't mean it was right.

[eek]

They are making 15% minimum cut on your expenses - so they have a vested interest. They are constantly prompting me not to forgot to claim my expenses. Their list of allowable expenses is very long. I actually don't doubt that they do pay as they explained, however as a basic rate taxpayer - with them taking min 15% - its really not worth my while. I can see how a higher rate tax payer might see the benefit though. I have also had confirmation from other Parasol "employees" who have successfully claimed.

Can I just check here what you mean by expenses.

Expenses to me are travel and subsistence while at the end client's main location

Mobile phones and computer purchases aren't really that type of expense and I believe that is what you (and Parasol) are talking about with the 15% here.

[gizzmo]

Can I just check here what you mean by expenses.

Expenses to me are travel and subsistence while at the end client's main location

Mobile phones and computer purchases aren't really that type of expense and I believe that is what you (and Parasol) are talking about with the 15% here.

Parasol call Electronic equipment Business costs - but the staff use the term expenses interchangeably as per the email blurb i posted in my earlier post. A laptop, ipad or mobile phone is described as a Business cost which they will reimburse 85% for and retain 15% because they still own it - and then when you complete the assignment you can buy it off them for the 15% remainder (or more) depending on the value.

https://www.parasolgroup.co.uk/wp-co...038.1602687741

[SueEllen]

Parasol call Electronic equipment Business costs - but the staff use the term expenses interchangeably as per the email blurb i posted in my earlier post. A laptop, ipad or mobile phone is described as a Business cost which they will reimburse 85% for and retain 15% because they still own it - and then when you complete the assignment you can buy it off them for the 15% remainder (or more) depending on the value.

https://www.parasolgroup.co.uk/wp-co...038.1602687741

HMRC is going to find that interesting in a few years....

[sira]

HMRC is going to find that interesting in a few years....

Well, I spoke to Parasol today. And raised the expenses point. They said they are audited by HMRC each year and their practices are completely legal.

Also spoke to Paystream who also said I can claim expenses.