Parasol expenses cover sheet

[moggy]

As a founding member of the FCSA, and having been audited by both Ernst & Young and HMRC, we are keen to ensure that we follow legislation to the letter and enable our employees to claim for all their incurred legitimate business expenses through the most compliant means possible.

We are pleased to be able to offer our employees the facility of claiming legitimate electronic equipment purchases as business expenses – particularly as some other umbrellas don’t offer this facility.

I am not surprised you allow them to claim these things - if you get to keep them..

[LisaContractorUmbrella]

Hello u1.

I work at Parasol head office, and would like to reassure you that the arrangement you have described above is an effective and legitimate way for us to ensure you have the right tools (eg electronic equipment) at your disposal to work on your assignment as a Parasol employee.

As we’ve some 8,000 employees across the UK, it’s somewhat impractical for us to spec out, buy and then ship out any number of electronic devices on a daily basis.

The most sensible option for all concerned, therefore, is for employees to spec out an item, pay for it out of their own pocket and have the cost reimbursed through Parasol. The item remains the property of Parasol for the duration of your employment, so a security deposit is retained out of net pay. This can be refunded to you at the point you leave Parasol, should you wish to return the item to us in a usable condition.

Should you wish to retain the item, the security deposit will cover the residual value.

Please call our employee support team on 0844 875 0079 if you would like to discuss this matter in more detail, or require further clarification.

Thanks.

Can you please explain Mike how the cost is 'reimbursed' to the employee - at a conservative estimate if 10% of your employees are expending an average of £750 per annum on equipment you would have had to reimburse over £500,000 - where would this money come from - surely this is not a cost of business?

[LisaContractorUmbrella]

Can you please explain Mike how the cost is 'reimbursed' to the employee - at a conservative estimate if 10% of your employees are expending an average of £750 per annum on equipment you would have had to reimburse over £500,000 - where would this money come from - surely this is not a cost of business?

Hello

[LisaContractorUmbrella]

Anyone

[Wary]

Can you please explain Mike how the cost is 'reimbursed' to the employee - at a conservative estimate if 10% of your employees are expending an average of £750 per annum on equipment you would have had to reimburse over £500,000 - where would this money come from - surely this is not a cost of business?

It's amazing how the Parasol reps always go quiet on these forums when the questions get too awkward ...

[original PM]

It's amazing how the Parasol reps always go quiet on these forums when the questions get too awkward ...

indeed looks like Mr Crossland has locked his pets back in the cage....

[LisaContractorUmbrella]

indeed looks like Mr Crossland has locked his pets back in the cage....

What an original euphemism

[Apox21]

It looks to me that Parasols policy on equipment isn't much different to other umbrella companies policy on equipment apart from the 10% deposit:

Parasol

"The costs of hardware, software and personal protection equipment essential to your role can be claimed. There’s no limit to the amount that can be claimed, although you must complete the sundry letter provided detailing how each purchase supports your role, along with the original receipt. Claiming the full cost of any purchase requires a security deposit* equivalent to 10% of the purchase price to be paid. The equipment will become the property of Parasol, with the option to purchase it after a qualifying period at a second-hand value assumed to be equal to 10% of the purchase price.* The 10% deposit will deducted from your net pay following your authorisation."


ContractorUmbrella

"Claims for equipment must be supported by evidence that they are specifically required for your current contract and that the equipment is wholly necessary for you to perform the assignment. Any general pieces of equipment for your role as a contractor or ‘nice to haves’ are not permitted by HMR&C."

[Waldorf]

It looks to me that Parasols policy on equipment isn't much different to other umbrella companies policy on equipment apart from the 10% deposit:

Parasol

"The costs of hardware, software and personal protection equipment essential to your role can be claimed. There’s no limit to the amount that can be claimed, although you must complete the sundry letter provided detailing how each purchase supports your role, along with the original receipt. Claiming the full cost of any purchase requires a security deposit* equivalent to 10% of the purchase price to be paid. The equipment will become the property of Parasol, with the option to purchase it after a qualifying period at a second-hand value assumed to be equal to 10% of the purchase price.* The 10% deposit will deducted from your net pay following your authorisation."


ContractorUmbrella

"Claims for equipment must be supported by evidence that they are specifically required for your current contract and that the equipment is wholly necessary for you to perform the assignment. Any general pieces of equipment for your role as a contractor or ‘nice to haves’ are not permitted by HMR&C."

I would imagine the Contractor Umbrella deduct the full cost of any equipment from your earnings, otherwise the brolly would be funding loads of ipads etc.

I think Lisa was trying to ask Parasol how they funded such purchases of equipment etc, as apart from taking 10% from the contractor, there is no apparent way that such purchases are funded.

It is a mystery and even more so that Parasol have gone quiet on here. Perhaps they should remember, "if you can't stand the heat, stay out of the kitchen."

[northernladuk]

It looks to me that Parasols policy on equipment isn't much different to other umbrella companies policy on equipment apart from the 10% deposit:

Parasol

"The costs of hardware, software and personal protection equipment essential to your role can be claimed. There’s no limit to the amount that can be claimed, although you must complete the sundry letter provided detailing how each purchase supports your role, along with the original receipt. Claiming the full cost of any purchase requires a security deposit* equivalent to 10% of the purchase price to be paid. The equipment will become the property of Parasol, with the option to purchase it after a qualifying period at a second-hand value assumed to be equal to 10% of the purchase price.* The 10% deposit will deducted from your net pay following your authorisation."


ContractorUmbrella

"Claims for equipment must be supported by evidence that they are specifically required for your current contract and that the equipment is wholly necessary for you to perform the assignment. Any general pieces of equipment for your role as a contractor or ‘nice to haves’ are not permitted by HMR&C."

I think we are aware of that. The HMRC policy on wholly and exclusively is well documented. The key argument is the 10%.