Naive Brolly Question

[Whorty]

Always worked via a LTD, so don't know a great deal on how Brollies work ... I know I could go searching but I'm idle and easier to ask a question

If we do all eventually get forced down the Brolly route, how will this impact pension payments and T&E? Can we still put a lump each year into a pension and get tax benefit (I assume so) but would this come out at source or would we get paid the salary, pay into pension then get the rebate back via tax return?

As for T&E, I currently pay 650 a month train as I need to commute into the big smoke - would this be claimable back as I'd be an employee of the Brolly? Again, I assume so but wanted to double check.

How about PII? Under a Brolly do contractors need this as we're employed via the Brolly and no longer via our own LTD. Saves 250 quid a year.

I think so long as I can keep my rate at the 500+ I'll still struggle on contracting Not moving across until I have to, but when/if the time comes the contractor life for me via a Brolly is still better than permie. May even take an easy life in the PS as there'll be a shortage of contractors over there

[eek]

Always worked via a LTD, so don't know a great deal on how Brollies work ... I know I could go searching but I'm idle and easier to ask a question

If we do all eventually get forced down the Brolly route, how will this impact pension payments and T&E? Can we still put a lump each year into a pension and get tax benefit (I assume so) but would this come out at source or would we get paid the salary, pay into pension then get the rebate back via tax return?

As for T&E, I currently pay 650 a month train as I need to commute into the big smoke - would this be claimable back as I'd be an employee of the Brolly? Again, I assume so but wanted to double check.

How about PII? Under a Brolly do contractors need this as we're employed via the Brolly and no longer via our own LTD. Saves 250 quid a year.

I think so long as I can keep my rate at the 500+ I'll still struggle on contracting Not moving across until I have to, but when/if the time comes the contractor life for me via a Brolly is still better than permie. May even take an easy life in the PS as there'll be a shortage of contractors over there

You don't get travel and expenses with a brolly. Well you would get the expenses a permanent employee may get but there are some nasty gotchas that limit even those

[Whorty]

You don't get travel and expenses with a brolly. Well you would get the expenses a permanent employee may get but there are some nasty gotchas that limit even those

Interesting, but wouldn't I be an employee of the Brolly, and therefore either my main working address is either their office, or my home office, and hence any travel to another office (say the client) should be claimable? If I worked for a consultancy I'd be allowed to claim travel. But hey, the gov likes to make rules for one and different for others ...

[northernladuk]

Too idle to even post it in the right part of the forum it seems.

[northernladuk]

Interesting, but wouldn't I be an employee of the Brolly, and therefore either my main working address is either their office, or my home office, and hence any travel to another office (say the client) should be claimable? If I worked for a consultancy I'd be allowed to claim travel. But hey, the gov likes to make rules for one and different for others ...

You need to read this.

http://forums.contractoruk.com/accou...ml#post2338432

[Whorty]

Too idle to even post it in the right part of the forum it seems.

Yup.

[malvolio]

Yup.

But not too idle to ask us to waste our time answering stupid questions that are easily answered by a five second search? Heigh ho...

You'll go far. Hopefully

[LondonManc]

But not too idle to ask us to waste our time answering stupid questions that are easily answered by a five second search? Heigh ho...

You'll go far. Hopefully

He's definitely consultant material nqat

[lucyclarityumbrella]

If we do all eventually get forced down the Brolly route, how will this impact pension payments and T&E? Can we still put a lump each year into a pension and get tax benefit (I assume so) but would this come out at source or would we get paid the salary, pay into pension then get the rebate back via tax return?

How about PII? Under a Brolly do contractors need this as we're employed via the Brolly and no longer via our own LTD. Saves 250 quid a year.

OK with regards to the Pensions - this isn't an issue, the pension payments are still made via salary sacrifice so you will gain the tax relief at the point of processing the payment.

T&S is no longer allowed via a compliant brolly, but if you are not under Supervision, Direction or Control by the end client then you may be able to claw this back via self-assessment at the end of the year. Our suggestion is that you speak directly with HMRC to get them to confirm if you are under SDC or not, don't bother with some of these so-called tests that are around, as HMRC are the only ones who will decide.

Insurance is normally included within the margin the brolly charges, so yes you would be saving that! Hope that helps

[youngguy]

OK with regards to the Pensions - this isn't an issue, the pension payments are still made via salary sacrifice so you will gain the tax relief at the point of processing the payment.

Lucy, just curious

How would pension contributions affect take home , for example a £500pd contractor through umbrella with 0 pension payments vs one who put £24k pa into a pension?

Also. Is that payable into any pension or the umbrella's own pension provider?