Supply teaching & umbrella company expenses

bridgend_girl

My teaching agency has just moved me and all their other teachers over to an umbrella company which has processed our pay with mileage and subsistence claimed against tax and NI. A saving of £120 approx. for which they have charged me a processing fee of £59.

Believing that when "something seems to good to be true then it isn't" I rang HMRC who have confirmed that supply teachers are not eligible for mileage etc. along with the relevant EIM reference.

I have opted opt of this umbrella company by e-mail tonight! What about others out there who are potentially sitting on a tax time bomb! Teachers beware please.

LittleVoice

bridgend_girl wrote: »

My teaching agency has just moved me and all their other teachers over to an umbrella company which has processed our pay with mileage and subsistence claimed against tax and NI. A saving of £120 approx. for which they have charged me a processing fee of £59.

Believing that when "something seems to good to be true then it isn't" I rang HMRC who have confirmed that supply teachers are not eligible for mileage etc. along with the relevant EIM reference.

I have opted opt of this umbrella company by e-mail tonight! What about others out there who are potentially sitting on a tax time bomb! Teachers beware please.

Did HMRC give you a reference to a publicly available document to confirm that supply teachers are not eligible? Did they understand that supply teachers can be sent to different locations in the same week and not to a regular pattern?

bridgend_girl

Oh they understood very well! Apparently each day (or even half day) of work constitutes a permanent contract with that location as my permanent place of work. Then next day wherever I am is my next place of work.

The reference was EIM 32130.

What I am fearing is that some of the supply agencies here in south wales are misleading their employees and the tax underpaid will be the empoyees responsibility not the agency that misled them....

LittleVoice

bridgend_girl wrote: »

Oh they understood very well! Apparently each day (or even half day) of work constitutes a permanent contract with that location as my permanent place of work. Then next day wherever I am is my next place of work.

The reference was EIM 32130.

What I am fearing is that some of the supply agencies here in south wales are misleading their employees and the tax underpaid will be the empoyees responsibility not the agency that misled them....

Thanks for providing the reference.

How can one day at work be a permanent place of work? There is actually a two-year window before somewhere is considered permanent in relation to temporary workers - that is either that they have spent two years at one location or they are expected to be spending two years there.

I've now looked at the HMRC website re EIM 32130 and see this is about NI rather than Income Tax.

bridgend_girl

I know it's tough but it's a special rule for agency workers only - lucky me eh?

The rise of so many agencies and so many unemployed teachers means that daily rates for supply teachers in 2007 were £ 95 a day so colleagues have told me and now in my experience they are £85 - 90 per day!

agrinnall

If you want to check further that what HMRC have told you is really correct (and I would, because it sounds very unlikely to me) then I would suggest posting again on the Cutting Tax board where the accountants and ex-tax inspectors tend to hang out.

bridgend_girl

thanks will do

Notmyrealname

LittleVoice wrote: »

Thanks for providing the reference.

How can one day at work be a permanent place of work? There is actually a two-year window before somewhere is considered permanent in relation to temporary workers - that is either that they have spent two years at one location or they are expected to be spending two years there.

It isn't that simple. An area can be classed as a permanent place of work, not just one location. So if you do agency work within a certain area, HMRC can class that as travel to work.