Parasol attempting to tax client billable expenses

[Gaza]

I am in my first Inside IR35 engagement. It wasn't ideal but the decent uplift on my normal daily rate went someway to sweetening the deal.

8 months in to the assignment, Parasol are now saying that client billable expenses will be taxable. I've had a bit of too and fro with them but they won't g=say any more than this.

In line with our Expenses Policy, Client Billable Expenses are subject to the same HMRC rules and regulations as any other expense claim. This includes considering whether you are under supervision, direction, or control (SDC) in how you carry out your work.

As you are showing as subject to or the right of SDC on the current assignment you are working on, this means that your client billable expenses could be subject to payroll deductions, depending on whether we determine the expenses are regular or non-regular, when checking your claim.

If you feel that you are not subject to SDC on the assignment, please advise the reasons for this in as much detail as possible and we will be sure to review this.

I am home based. My contract with Parasol states this and gives the location as home. The client and agency are comfortable with the arrangement. Occasionally (1 or 2 times a month) I travel to a client site. The decision to travel is mine and I am not compelled to attend.

Does anyone else have this issue? Any recommendation for an Umbrella that doesn't do this?

[WTFH]

You may want to speak to your accountant on this. The red flag to me is this:

...The decision to travel is mine and I am not compelled to attend...

If you are deciding to make a journey that the client hasn't requested you make, then it is a personal, not work, decision.

...but ask an expert.

[eek]

I am in my first Inside IR35 engagement. It wasn't ideal but the decent uplift on my normal daily rate went someway to sweetening the deal.

8 months in to the assignment, Parasol are now saying that client billable expenses will be taxable. I've had a bit of too and fro with them but they won't g=say any more than this.



I am home based. My contract with Parasol states this and gives the location as home. The client and agency are comfortable with the arrangement. Occasionally (1 or 2 times a month) I travel to a client site. The decision to travel is mine and I am not compelled to attend.

Does anyone else have this issue? Any recommendation for an Umbrella that doesn't do this?

It's a commute to your (semi-regular) office base - which isn't tax deductible...

Sorry that you think it was but it really isn't....

[eek]

You may want to speak to your accountant on this. The red flag to me is this:

Why would someone working through an umbrella firm have an accountant?

[WTFH]

Why would someone working through an umbrella firm have an accountant?

Fair point

[Gaza]

You may want to speak to your accountant on this. The red flag to me is this:



If you are deciding to make a journey that the client hasn't requested you make, then it is a personal, not work, decision.

...but ask an expert.

To clarify. I am in a senior position in the programme. The client has no issue with me deciding when I need to be in a office with client staff/other contractors for meetings/workshops etc. They agreed that if I needed to attend the office, they would cover travel expenses.

[Gaza]

It's a commute to your (semi-regular) office base - which isn't tax deductible...

Sorry that you think it was but it really isn't....

My contractual base is my home location. Why would my position be any different from a permie who is contractually home based and is reimbursed when travelling to meetings in an office location?

[eek]

My contractual base is my home location. Why would my position be any different from a permie who is contractually home based and is reimbursed when travelling to meetings in an office location?

Try https://www.gov.uk/hmrc-internal-man...anual/eim32065

The problem you have is that the office is permanent in regard to the contract you are currently working on.

You can argue the point all you want but Parasol are correct here given how HMRC view this area.