Newbie inside IR35and allowable expenses

[Mikexx]

I am conscious that rules keep changing and I read some articles on this subject that are clearly out of date.

I am considering using umbrella.co.uk or PayStream as they are on my agent’s list and allow for a Salary Sacrifice for a pension. Are there any views on these two?

My new place of work is a long way from home and also from my current workplace. I had believed the 24 month rule for permanent staff in respect of relocation accommodation and travel expenses also applied for contracts shorter than 24 months. Is this the case or are these now disallowed?


I would be grateful for any help.

[malvolio]

Happy to be proved wrong by better experts than me, but my understanding is that inside IR35 means no work-related expenses, including travel and accommodation, just like permies. You can only claim for expenses if you are sent to another location for a short term (again, just like a permie) but not to the office if you are working from home.

Make sure you have covered your new overheads in your rate... Any costs you incur doing the job will be paid out of your taxed income.

[eek]

You are starting a new job - the 24 month rule for permanent staff doesn't apply because it's not a relocation it's new employment.

Travel to work for umbrella workers has been the same for the past 10 years - every new contract is treated as a new permanent job so no relocation allowances and no charging of expenses to your main office.

[Ketto]

As others have said you can’t claim expenses for travelling to the office if via an umbrella. Have used Paystream twice in the past including the use of salary sacrifice for the pension and thought they were decent, didn’t have any issues.

[Mikexx]

You are starting a new job - the 24 month rule for permanent staff doesn't apply because it's not a relocation it's new employment.

Travel to work for umbrella workers has been the same for the past 10 years - every new contract is treated as a new permanent job so no relocation allowances and no charging of expenses to your main office.

https://www.gov.uk/expenses-and-bene...n/whats-exempt

Suggests that relocation costs are applicable for "a new employee is moving area to start a job with you".

Hence the question.

[Mikexx]

As others have said you can’t claim expenses for travelling to the office if via an umbrella. Have used Paystream twice in the past including the use of salary sacrifice for the pension and thought they were decent, didn’t have any issues.

That's a useful steer. Thanks.

[Mikexx]

You are starting a new job - the 24 month rule for permanent staff doesn't apply because it's not a relocation it's new employment.

Travel to work for umbrella workers has been the same for the past 10 years - every new contract is treated as a new permanent job so no relocation allowances and no charging of expenses to your main office.

Many thanks for the reply.

I suppose I thought that employment Inside IR35 was pretty much the same as for permanent employees.

By way of example:
https://www.nhsjobs.com/documents?edoc=2926
ie. New Starters Relocation Policy.pdf for an NHS Trust incudes items like "Temporary accommodation costs" as allowable expenses up to the £8,000 limit.

[eek]

Many thanks for the reply.

I suppose I thought that employment Inside IR35 was pretty much the same as for permanent employees.

By way of example:
https://www.nhsjobs.com/documents?edoc=2926
ie. New Starters Relocation Policy.pdf for an NHS Trust incudes items like "Temporary accommodation costs" as allowable expenses up to the £8,000 limit.

If the end client is willing to pay it you may get it - but I somehow doubt it - the end client / agency will just move on to the next contractor...

[Mikexx]

If the end client is willing to pay it you may get it - but I somehow doubt it - the end client / agency will just move on to the next contractor...

This is whether the umbrella company will pay it as a salary sacrifice. The end client and agency will be oblivious to any financial, tax or allowable relocation expenses.

[malvolio]

This is whether the umbrella company will pay it as a salary sacrifice. The end client and agency will be oblivious to any financial, tax or allowable relocation expenses.

Ermm, yes, but you are responsible for paying the correct amount of tax, nobody else. If expenses aren't allowable under OWT/IR35, then tax is owed on all your income regardless of any labels applied to the payments.

You should be asking the umbrella really, as part of your due diligence. Talk to your preferred ones (and also talk to Clarity Umbrella, who will be happy to answer such things).

Getting this wrong could become expensive.