Umbrella Company Relocation Allowance

[BR04DY]

Thanks for the responses.

Most Umbrella companies I spoke to had never had a request to process a P11D form or relocation expenses, so hence the request here. I do have a IFA (that I pay for and will get clarity) but appreciate the feedback on the forum. I've found Umbrella companies to all be relatively simple offerings wanting to use the same approach to everything, understandably keeping costs down. Anything out of the ordinary is not offered, this isn't because it falls foul of HMRC but because it falls foul of their approach.

I would caution anyone considering any permanent job anything other than a "gig", in this climate it is likely you will move job and that may necessitate moving location. If you never push for relocation expenses you will never get them. To expand on why I am confident I do meet the criteria set out here: https://www.gov.uk/expenses-and-bene...n/whats-exempt (and I had a successful claim before).

The role I'm being offered is for 2 years, requires me to be based in a client office (in London), to clarify not at an Umbrella company location.

I don't understand the pessimistic approach on this board. I appreciate tax and employment law can be a grey area, it is very rarely black or white.

I'll keep you updated on how I progress, I am considering a permanent employee role so sadly the story may not play out.

[northernladuk]

Thanks for the responses.

Most Umbrella companies I spoke to had never had a request to process a P11D form or relocation expenses, so hence the request here. I do have a IFA (that I pay for and will get clarity) but appreciate the feedback on the forum. I've found Umbrella companies to all be relatively simple offerings wanting to use the same approach to everything, understandably keeping costs down. Anything out of the ordinary is not offered, this isn't because it falls foul of HMRC but because it falls foul of their approach.

And there is a very good reason for it. They are just a payment vehicle for temp work. There approach is because it doesn't meet the HMRC criteria so I'd say your last line is incorrect. You cannot expect whoever to pay your relocation expenses every two years just because you get a temp gig somewhere else.

I would caution anyone considering any permanent job anything other than a "gig", in this climate it is likely you will move job and that may necessitate moving location. If you never push for relocation expenses you will never get them. To expand on why I am confident I do meet the criteria set out here: https://www.gov.uk/expenses-and-bene...n/whats-exempt (and I had a successful claim before).

You had a successful claim while you were perm at a company for the right reasons. A temp two year gig is not the right reasons.

The role I'm being offered is for 2 years, requires me to be based in a client office (in London), to clarify not at an Umbrella company location.

As many other contractors have had to do. It's what we do.

I don't understand the pessimistic approach on this board. I appreciate tax and employment law can be a grey area, it is very rarely black or white.

I'll keep you updated on how I progress, I am considering a permanent employee role so sadly the story may not play out.

Bearing in mind that duration even meets the two years rule for definition of a temporary location there is no chance that is considered as a permanent move or relocation. It's a temp residence for a temp gig. It's not gonna play out either way.

At best you are playing the system and it's wording to use it for something that was never meant to be used for. We cannot expect the gov/public purse to pay for us while we work away for temp gigs. What you are really doing is expecting an favourable tax position on your expenses while working at a different location at a brolly which is clearly not allowed.

[malvolio]

...
I would caution anyone considering any permanent job anything other than a "gig", in this climate it is likely you will move job and that may necessitate moving location. If you never push for relocation expenses you will never get them. To expand on why I am confident I do meet the criteria set out here: https://www.gov.uk/expenses-and-bene...n/whats-exempt (and I had a successful claim before).

Any job is a gig, although we usually refer the term to contract/freelance work. I do not understand the bold bit, but we are fairly good at recognising the difference between a permanent and contract position (unlike some, it seems).

And as I said at the outset, you can of course get relocation costs from your client - although the chances are vanishingly small - but it will still be part of your day rate and therefore not tax exempt. Especially as you've already blown the 24-month rule and, more importantly it fails the wholly and exclusively test.

Do let us know what happens though...

[lucyclarityumbrella]

Not something an umbrella company can process for you, as it wouldn't be deemed as only for the purposes of the assignment unless you move back again once it finishes

[northernladuk]

Not something an umbrella company can process for you, as it wouldn't be deemed as only for the purposes of the assignment unless you move back again once it finishes

Wonder if it's sunk in to the OP yet?