Umbrella Company vs PAYE

[One Click Group]

Hi kyrianic

What Lisa is asking is are you planning on continuing to take contracting roles or is the position temp to perm?

In order for you to benefit from working with an umbrella company (and offset business expenses) there needs to be a commitment from you to continue taking temporary roles. In other words, if you join an umbrella company with the intention of only completing the one assignment and then resigning from the umbrella and going permanent (permieland) then there would be no benefit as you would be prevented from claiming tax relief on your expenses from the outset.

[alluvial]

What do you mean by permieland?For the moment I am thinking of working on this assignment for 6 months (that's the time of the contract) and once this ends I may search for a job either a permanent one or continue contracting.How is this related to my previous post?Thank you for your replies.

The answer to the question is "Yes I intend to continue contacting and I will be taking up future positions with you"

[LisaContractorUmbrella]

What do you mean by permieland?For the moment I am thinking of working on this assignment for 6 months (that's the time of the contract) and once this ends I may search for a job either a permanent one or continue contracting.How is this related to my previous post?Thank you for your replies.

In order for you to be able to claim tax relief on the cost of your travel you would need to have the intention to work on more than one assignment through the umbrella company. Travel and subsistence expenses can only be claimed when you are travelling to a temporary workplace; a single assignment automatically becomes a permanent place of work and therefore the expense would not be allowable under HMRC rules

[kyrianic]

Thank you guys. I was not aware of that. So do all umbrella companies ask this question whether I will continue contracting or not?How do I know if I will manage to get a new contract in six months?

[alluvial]

Thank you guys. I was not aware of that. So do all umbrella companies ask this question whether I will continue contracting or not?How do I know if I will manage to get a new contract in six months?

I used Lisa's mob before I regained my sanity and went back onto the Ltd path.

I was asked the question and I told them (truthly) that yes I intended to continue to contract through them for my next assignment but come the end of the contract with no next assignnment I was sent a resignation form to sign which made the whole question moot anyway. So, as I said earlier, your stated intention should always be to continue with them so that you can benefit from tax free expenses.

[LisaContractorUmbrella]

Thank you guys. I was not aware of that. So do all umbrella companies ask this question whether I will continue contracting or not?How do I know if I will manage to get a new contract in six months?

All umbrella companies should ask you that question in order to be compliant with HMRC requirments