Umbrella companies

nimbo

Hiya - 

Sorry if I’m in the wrong place here. 

I use an umbrella company and recently the tax man has put my tax requirements up due to the benefits the umbrella company offers. Which to be fair they do - I could buy vouchers  for shops I want to use with a 5% discount etc. (My agency will only let me use an approved list of umbrella companies - as there have been concerns over tax avoidance and slightly dodgy schemes historically).  

I’ve never really explored these benefits or used the function as I don’t really buy stuff (saving as hard as I can) and I forget to check when I am shopping. Also it’s a faff to be honest. 

Does anyone know of any reputable companies that I could look to use that don’t offer this so I don’t get stung???? 

Many thanks. 

Grumpy_chap

nimbo said:

Hiya - 

Sorry if I’m in the wrong place here. 

I use an umbrella company and recently the tax man has put my tax requirements up due to the benefits the umbrella company offers. Which to be fair they do - I could buy vouchers  for shops I want to use with a 5% discount etc. (My agency will only let me use an approved list of umbrella companies - as there have been concerns over tax avoidance and slightly dodgy schemes historically).  

I’ve never really explored these benefits or used the function as I don’t really buy stuff (saving as hard as I can) and I forget to check when I am shopping. Also it’s a faff to be honest. 

Does anyone know of any reputable companies that I could look to use that don’t offer this so I don’t get stung???? 

Many thanks. 

Hi - you have to use one of the UCs approved by the Agency and that is a normal practice, typically from a selection of half-a-dozen or so approved partners.  Once you have selected from the choice, it is usually quite a faff to switch providers.

I wonder whether your question is an incorrect understanding of a coincidental change in tax code.  
What exactly is the tax code notice you have and what benefits are listed in the notes?

It is just that the discount schemes are not usually assessed as a BIK subject to income tax. 
Many employers, not just UC's enrol to this type of "perk" scheme and they usually amount to nothing more than discounts from the suppliers - not even always the largest discount available.  
Sometimes, the employer even generates income from the scheme rather than incurring a net cost.
If discounts when shopping were to be subject to income tax then everything from CC rewards, Clubcard / Nectar points, BOGOF, sale discounts would all incur a tax liability and be an absolute nightmare to administer.  All these costs are met from the marketing budget of the retailer and not treated as income for the consumer.
IF this type of scheme was subject to income tax, it would have to be linked to the actual benefit which changes for each employee and almost daily.

Is it possible that the change to UC employment happens to tie up with some other reason that resulted in a tax code adjustment?  Do they offer health care or something?

chrisbur

Nearly six months ago someone asks if anyone can recommend an umbrella company.
Today a new member joins and their only post so far is to recommend an umbrella company.
Suspicious or what? 

EDIT  The post I refer to here has now been removed 

nimbo

Haha. 

The saga continues as I now have to fill out a self assessment form too. 

Not impressed. But I can’t be faffed to change umbrella. Especially to one randomly suggested by a stranger online with no justification.  

Grumpy_chap

nimbo said:

I now have to fill out a self assessment form too. 

This will at least ensure that you have paid the correct level of income tax and receive a refund for any tax overpaid associated with benefits that may have been incorrectly reported before.  Though this SA now will be for the year ended April 2021 so may not capture whatever it was that you thought was affecting the tax code when you started the thread.

Nnenne1

I run an umbrella company and would be happy to help.