Why won't Umbrella accept travel expenses

[Benny Boy]

Hi,

I was considering going Umbrella and got a quote. When they asked what expenses I would be claiming, they said I couldn't claim mileage as the workplace was temprorary? Of course it is, I'm contracting !!! I thought I could claim 45p a mile as expenses - has this been changed / tightened ?

I don't trust them already ;o)

[northernladuk]

Hi,

I was considering going Umbrella and got a quote. When they asked what expenses I would be claiming, they said I couldn't claim mileage as the workplace was temprorary? Of course it is, I'm contracting !!! I thought I could claim 45p a mile as expenses - has this been changed / tightened ?

I don't trust them already ;o)

Read the stickies at the top of the thread. Umbrella is your employer so you don't claim the same. The 45p is against tax which is different between LTD and Umbrella. Do some research first before asking a raft of basic questions. Most umbrella companies offer a guide you can download. Read those as well.

Not trusting someone becuase you don't have a clue is not very clever IMO

[Benny Boy]

Apologies. Wrists slapped. I did research it on t'internet which indicated I could claim travel expenses with Umbrella.

[Benny Boy]

Quote from said Umbrella website...

"You can claim the cost of travel to and from your temporary place of work. Mileage rates are 45p per mile for the first 10,000 miles in any fiscal year and then 25p per mile thereafter. This allowance is to cover fuel and running costs of the vehicle. If you are traveling to work as a passenger in a car you are entitled to claim 5p per mile. You can also claim for parking and congestion charges but you may not claim for parking fines or speeding fines. The cost of travel by public transport can be claimed but you must have a valid receipt. A mileage allowance can also be claimed for travel by motorcycle and bicycle at rates of 24p per mile and 20p per mile respectively."

Am I still missing something ? Totally contridicts what agent said to me (several times as I challenged her about it).

[malvolio]

Claim from whom, do you think?

Let's start with the basic question - you do understand that all expenses, fees and other stuff come out of your pocket? And we're talking about tax, not someone else paying your travel cost...

I think you need to read the guides.

[moggy]

looks to me like he has read the guides, but that he has told the umbrella co that this will be his one and only role with this umbrella co as after this role he is leaving.

if you tell them that then its your perm place of employment - it has been mentioned before on a few of these threads, i think it was lisa that explained it.

[LisaContractorUmbrella]

looks to me like he has read the guides, but that he has told the umbrella co that this will be his one and only role with this umbrella co as after this role he is leaving.

if you tell them that then its your perm place of employment - it has been mentioned before on a few of these threads, i think it was lisa that explained it.

You are absolutely right Moggy - if you only intend to do one assignment with any umbrella company you won't be able to claim for travel expenses as that location automatically becomes a permanent workplace

[Sue]

You are absolutely right Moggy - if you only intend to do one assignment with any umbrella company you won't be able to claim for travel expenses as that location automatically becomes a permanent workplace

The HMRC's definition of a temporary workplace doesn't state the above - EIM32075 - Travel expenses: travel for necessary attendance: definitions: temporary workplace. In summary, it states: “A workplace is a temporary workplace if an employee goes there only to perform a task of limited duration or for a temporary purpose.”. There's no mention of a location becoming permanent if the worker intends to do one assignment.

The HMRC's definition of a permanent workplace - EIM32080 - Travel expenses: travel for necessary attendance: definitions: temporary workplace: limited duration, the 24 month rule. In summary, it states: “a further rule that prevents a workplace from being a temporary workplace where an employee attends it in the course of a period of continuous work that lasts, or is likely to last, more than 24 months…”. If continuous work is undertaken for more than 24 months, the HMRC define that location as permanent in relation to travel expenses.

I know my post is late, but I'm new to this site.

Which HMRC article states that contractors can't claim travel expenses if they only intend to do one assignment?

[malvolio]

.

Which HMRC article states that contractors can't claim travel expenses if they only intend to do one assignment?

The one that defines a permanent workplace. Expenses are for the costs of getting to a temporary workplace, if you're only doing one gig with an umbrella you don't have one.

[Sue]

The one that defines a permanent workplace. Expenses are for the costs of getting to a temporary workplace, if you're only doing one gig with an umbrella you don't have one.

I've heard this argument before about one contract making a workplace permanent, but so far no-one has been able to quote exactly where they got that definition from. The HMRC EIM32080 article says a worker has to be at a location for 24 months plus for it to be permanent.

Which article are you quoting from?