End of First Contract With Umbrella Company

[Bones]

As I understand it, if I complete only one contract with an umbrella company the tax man will regard me as NOT being a contractor and will be chasing me for allowances claimed during the period. I would therefore assume it is normal to remain with the umbrella company to at leased start another contract...yes?

[LisaContractorUmbrella]

As I understand it, if I complete only one contract with an umbrella company the tax man will regard me as NOT being a contractor and will be chasing me for allowances claimed during the period. I would therefore assume it is normal to remain with the umbrella company to at leased start another contract...yes?

Not quite. In order to claim travel expenses you have to be travelling to a temporary location - your umbrella company should operate an overarching contract of employment which has the legal effect of taking a series of assignments and bringing them all under one employment so that each location is temporary. If, when you sign up with the umbrella, you only intend to complete one assignment it must, by default, become a permanent workplace and therefore travel expenses are not allowable.

[Bones]

Not quite. In order to claim travel expenses you have to be travelling to a temporary location - your umbrella company should operate an overarching contract of employment which has the legal effect of taking a series of assignments and bringing them all under one employment so that each location is temporary. If, when you sign up with the umbrella, you only intend to complete one assignment it must, by default, become a permanent workplace and therefore travel expenses are not allowable.

How is that answer related to my question?

I have already stated my intension to complete more than one contract position.

[The Spartan]

What happens if you complete your first contract and then you are offered a contract abroad?

[Sockpuppet]

You are correct. However staying for a week just to get the "more than one employment" tick won't work as leaving will be a big flag to HMRC should you be investigated. Also they'll regard you leaving one employment and going to another as friday-monday with regards to IR35. IMO

[northernladuk]

How is that answer related to my question?

I have already stated my intension to complete more than one contract position.

Appears to answer your question perfectly to me. Have you tried reading it again.

[LisaContractorUmbrella]

How is that answer related to my question?

I have already stated my intension to complete more than one contract position.

Glad I bothered

Single assignment - no travel. More than one assignment through the same umbrella company - travel allowable up to 24 months.

[LisaContractorUmbrella]

Appears to answer your question perfectly to me. Have you tried reading it again.

Thanks NLUK - thought I'd missed something there for a minute

[greencabbage]

Not quite. In order to claim travel expenses you have to be travelling to a temporary location - your umbrella company should operate an overarching contract of employment which has the legal effect of taking a series of assignments and bringing them all under one employment so that each location is temporary. If, when you sign up with the umbrella, you only intend to complete one assignment it must, by default, become a permanent workplace and therefore travel expenses are not allowable.

So following on from this:
I am with an umbrella, I completed contract term 1 and have signed extension (term 2), I cannot treat this as a seperate assignment even if the terms of service are different, due to the location clause, as in - for now this is my permanent workplace?


That being said, if I don't want to repay tax on expenses, I would need to have another contract at a different location / clientco through the umbrella before setting up a ltd (if that is the way I choose to go)

(Note, I am new to this, have read the info on site and used the search, oh what a joyous task that is!!! , I am just trying to clarify if I have understood it.)

[The Spartan]

Single assignment - no travel. More than one assignment through the same umbrella company - travel allowable up to 24 months.

What if the umbrella company cannot support you for a particular assignment say for instance in Europe?