From their website:
"Turning to expenses, the legislation fundamentally mentions MSC operations and how tax avoidance is promoted, Parasol does not form part of the definition and Parasol contractors will be able to claim legitimate business expenses.
HMRC have commented that the legislation is not designed to affect Umbrella Companies such as Parasol. I would further argue that the Parasol model is widely different to many of the PAYE versions and our future is very bright. "
Also :
PARASOL and the “Pre Budget Report” – You are safe and there are no expense issues!
You may have heard that last Wednesday the the Chancellor revealed a new document entitled “Tackling Managed Service Companies”. HMRC have been looking at ways to increase the amount of tax paid and believe that the use of composite companies or single person service companies run by a managed company to be a tax avoidance route.
A “worker” would typically be paid a low salary and then receive weekly or monthly dividends and expenses. This would in some cases mean that a contractor would receive a return of up to 85% and often the “schemes” would be backed by IR35 insurance.
There is also lot’s of noise about Umbrella Companies not being able to allow expense claims and this is correct if your related to a Managed Service Scheme (a composite or a single person shareholder scheme). Working through Parasol, means you will retain your expenses and not have any hassle over tax and related matters.
.....so according to that you will still be able to claim legitimate expenses. Or at least they think you will. But I don't trust what the HMRC might have said or how they will interpret the rules.
I don't work for Parasol and I still think it would be a very good idea to start your own Ltd Co for any contracts starting after March, but in the interests of balance I thought I'd stick this up.
"Turning to expenses, the legislation fundamentally mentions MSC operations and how tax avoidance is promoted, Parasol does not form part of the definition and Parasol contractors will be able to claim legitimate business expenses.
HMRC have commented that the legislation is not designed to affect Umbrella Companies such as Parasol. I would further argue that the Parasol model is widely different to many of the PAYE versions and our future is very bright. "
Also :
PARASOL and the “Pre Budget Report” – You are safe and there are no expense issues!
You may have heard that last Wednesday the the Chancellor revealed a new document entitled “Tackling Managed Service Companies”. HMRC have been looking at ways to increase the amount of tax paid and believe that the use of composite companies or single person service companies run by a managed company to be a tax avoidance route.
A “worker” would typically be paid a low salary and then receive weekly or monthly dividends and expenses. This would in some cases mean that a contractor would receive a return of up to 85% and often the “schemes” would be backed by IR35 insurance.
There is also lot’s of noise about Umbrella Companies not being able to allow expense claims and this is correct if your related to a Managed Service Scheme (a composite or a single person shareholder scheme). Working through Parasol, means you will retain your expenses and not have any hassle over tax and related matters.
.....so according to that you will still be able to claim legitimate expenses. Or at least they think you will. But I don't trust what the HMRC might have said or how they will interpret the rules.
I don't work for Parasol and I still think it would be a very good idea to start your own Ltd Co for any contracts starting after March, but in the interests of balance I thought I'd stick this up.
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