Umbrella company expenses

dx052

I am now having to use an umbrella company for my short works contract. I am told I can claim expenses for things like travel, food etc. I earn about £12 an hour and and I am away from my home for more than 12 hours a day. I am very new to this and they didn't really explain it very we'll to me. I have not forwarded any expenses yet, as I don't even know how to. If someone could give me some basic advice on what I can claim for, how I claim and what's worth claiming for.

getmore4less

google umbrella companies and scan the policies of each to get a feel for what claims are acceptable, they each have slightly different rules within the framework.

If you have a long commute it might even be worth staying overnight and claiming full cost rather than the subsistence levels.

Vomityspice

Why do you 'have to use an umbrella company'?

Either your an independent contractor or are you are a disguised employee?

Depending on what you are earning it may be better to go Ltd, and take most of your income as a dividend as you don't pay NI on dividends.....

agrinnall

Vomityspice wrote: »

Depending on what you are earning it may be better to go Ltd, and take most of your income as a dividend as you don't pay NI on dividends.....

The OP has already said he's earning £12 per hour, which is probably not enough to justify going the Limited Company route.

daggz68

If working as a temp, don't be fooled into thinking you'll be able to claim expenses back. Every wage will come out different and you will probably find you'll earn more just paying normal tax and ins

dx052

daggz68 wrote: »

If working as a temp, don't be fooled into thinking you'll be able to claim expenses back. Every wage will come out different and you will probably find you'll earn more just paying normal tax and ins

Thanks, I was kind of thinking that!

tottytrotter35

Hiya. I have just given my notice to my Umbrella company. Frankly I think it's a rip off! ! I was only on a part time contract and their fees and the fact that I had to pay my own PLUS their employer national insurance contributions, meant that there was a difference in what I earned and what I took home of about £114 per week. Will go paye from now on

CC-Warrior

Vomityspice wrote: »

Why do you 'have to use an umbrella company'?

Either your an independent contractor or are you are a disguised employee?

Depending on what you are earning it may be better to go Ltd, and take most of your income as a dividend as you don't pay NI on dividends.....

If the OP is new to contracting this is not good advice, using an umbrella company is much simpler than running a limited company!

CC-Warrior

dx052 wrote: »

I am now having to use an umbrella company for my short works contract. I am told I can claim expenses for things like travel, food etc. I earn about £12 an hour and and I am away from my home for more than 12 hours a day. I am very new to this and they didn't really explain it very we'll to me. I have not forwarded any expenses yet, as I don't even know how to. If someone could give me some basic advice on what I can claim for, how I claim and what's worth claiming for.

.

A good umbrella company would be able to assist you with making claims. Typically you can claim mileage, public transport, parking, food & drink, home as office allowance, etc etc, the specifics will be down to the umbrella companies' dispensation with HMRC.

It can seem complicated at first but can make a real difference to your take home pay if done correctly.

Which umbrella company are you using?