Umbrella Company Relocation Allowance

[BR04DY]

Can anyone advise a (reputable) umbrella company that will process a P11d as my employer to cover a £8000 relocation allowance?

I fully expect the costs to be recovered through my rate by the umbrella company, but there'll be a significant tax saving for me.

I currently reside in Scotland (having received relocation expenses from previous employer for the move from England) and looking to start a new position which requires me to work through an umbrella company in London. I'm confident I meet the HMRC criteria for the relocation allowance.

I have called multiple umbrella companies, responses have varied:

• No.
• Yes, then when asked for confirmation via email no .
• Submit a P87 (this will only cover up to £2500, not really what it is for).
• Complete a self assessment at year end.

I have searched through the treads and not found an answer but apologies if this has been covered.

Thanks

Broady

[malvolio]

You do understand that under IR35 rules you are not allowed work-related expenses. And that you are not an employee of the umbrella anyway, merely a worker operating under PAYE, which changes the rules somewhat.

So you will get the money from the end client but it will be taxable as income.

[Paralytic]

You do understand that under IR35 rules you are not allowed work-related expenses. And that you are not an employee of the umbrella anyway, merely a worker operating under PAYE, which changes the rules somewhat.

No-where did the OP mention IR35. Working through an Umbrella does not equate to inside IR35. Although, i'm not sure that changes anything here.

So you will get the money from the end client but it will be taxable as income.

I don't think the client is paying an extra £8K for this. I think the OP wants the Umbrella to include £8K of their day-rate-income as expenses on their payslip, so that its not taxed.

Assuming so, i'm not so sure the OP meets the HMRC criteria for the relocation allowance.

[malvolio]

OK, missed the non-IR35 option.... However I still struggle with idea of relocation expenses for a contractor. And I can see why an umbrella would struggle to account for it properly.

[ladymuck]

Does the role require you to be onsite because it is impossible to do the work remotely? And you said you'd be happy to permanently move the length of the country for a temporary job?

[eek]

I'm confident I meet the HMRC criteria for the relocation allowance.

I'm very confident that you don't.

[GhostofTarbera]

You will find the umbrella company you don’t currently work for has no requirement for you to work in London

good try though

[northernladuk]

Bearing in mind the location of the work being done is temporary by nature of the way we work I cannot see for one minute how relocation expenses will be allowed. The London work is just a gig that will end after a fixed period of time so connot be considered as permanent. I have to ask why the OP would consider relocating on that basis alone. Maybe they want to move to London as a lifestyle choice or it's where more work is but neither of those is a business justification. THey want to use a single gig to warrant a claim which just cannot happen surely. Locaiton of the umbrella is also irrelevant as they will never work at the Umbrella site.

How can you have recieved relocation expenses from a previous employer but didn't move? Isn't that fraud depending on what tax benefits were gained from the expenses?

Can't see how this one has a hope of flying.

[Paralytic]

How can you have recieved relocation expenses from a previous employer but didn't move? Isn't that fraud depending on what tax benefits were gained from the expenses?

OP previously got relocation expenses for a move from England to Scotland for a previous employer (as a permanent employee). They've now convinced themselves that they are eligible to use Umbrella expenses to pay for them to relocate back to England, so as to save on tax, have found out that no Umbrella will support such a ludicrous idea, but have posted here in one last desperate attempt to see if there is a way.

No response since the original post, so i doubt we'll ever hear back.

[northernladuk]

OP previously got relocation expenses for a move from England to Scotland for a previous employer (as a permanent employee). They've now convinced themselves that they are eligible to use Umbrella expenses to pay for them to relocate back to England, so as to save on tax, have found out that no Umbrella will support such a ludicrous idea, but have posted here in one last desperate attempt to see if there is a way.

No response since the original post, so i doubt we'll ever hear back.

Ahh yes. I missed the 'from' bit. My bad. It appears he's used it once and doesn't quite understand the new way he's working so expecting it again. Oh dear.