Hello Everyone

LisaContractorUmbrella

I decided to register on this forum as I have seen a number of questions arise about umbrella companies and the way they work as well as questions about income tax and national insurance. I am a director at ContractorUmbrella Ltd and would be happy to answer any questions that you may have. No advertising or spam, we are just aware that there is a lot of contradictory information out there.

anish

I have just started as a Contractor and have looked into umbrella compaies, there are SO MANY out there. Do different umbrella companies have different tax dispensions allocated to them from the IR?

wattoogle

LisaContractorUmbrella wrote: »

I decided to register on this forum as I have seen a number of questions arise about umbrella companies and the way they work as well as questions about income tax and national insurance. I am a director at ContractorUmbrella Ltd and would be happy to answer any questions that you may have. No advertising or spam, we are just aware that there is a lot of contradictory information out there.

Thanks for giving that great speech about spam and advertisement.I too thinking like that.

LisaContractorUmbrella

anish wrote: »

I have just started as a Contractor and have looked into umbrella compaies, there are SO MANY out there. Do different umbrella companies have different tax dispensions allocated to them from the IR?

This is a very common question Anish and it crops up because some umbrella companies use the term 'dispensation' in their marketing. In normal accounting practise an employee's expenses are recorded on what is called a P11D which is then submitted to the Inland Revenue. If an umbrella company had to do this for each of its employees we would spend all our time form filling so, to avoid this, a dispensation is applied for. You have to prove that the expenses that appear on the dispensation are being commonly claimed by the contractors using your umbrella comapny and you have to provide receipts over a period of seceral months before the dispensation will be issued. From that point on all the expenses on the dispensation do not have to be entered on a P11D - it does not mean that, from that point on, all your employees can claim that particular expense without the need to keep receipts. In order for an expense to be valid it has to be incurred wholly and exclusively in the course of the contract and it has to be incurred by the claimant who must also be able to produce receipts if required.

HTH

50fogey

Hi Lisa

Kind offer from you which I would like to take you up on. Lisa I was working overseas (unregulated tax affairs but thats another story). I have now started as a "consultant" for a company which insisted that I was Ltd Compmany status. So I started a Ltd Co. with myself as sole director and my wife as company secretary. I have read on another thread that this is "covert" or "hidden" employee that no longer attracts any tax benefits. Is ther any way I can go as a Ltd Co. under the "Umbrella" scheme? Or do I need to find another way round taking on liabilities for corporation tax, income tax and both employee's and employer's NI contributions?