PDA

View Full Version : K&B as an umbrella company - newbie!



men0bcs
1st October 2004, 12:15
Right, I hav ebeen working my first contract, first job since finishing uni, for 3 months or so, and a friend has told me about working under an umbrella company. I got a projection of my income if i went with K&B (the one i was told about) and it was over £150 a week more than what I take home at the moment.

Now, K&B are charging me £13.50 a week to do all the paper work, which sounds rather cheap, my hourly rate has gone up by £2.50, and I can claim 40p for every mile I travel. As well as travel expenses, I have been told I am entitled to £20 a day for being out of the house for 10 hours, and £9 for lunch. THis all amounts to me only paying tax on minimum wage! (about £10 tax, and £13 NI employee+employer)

I'm slightly worried that I appear to be getting quite a lot in return for not much, which sounds too good to be true! Am I gonna have the Inland Revenue knocking on my door in April asking for a big wad of cash to cover my unpaid taxes? And also, are K&B any good? I guess it is too late now, as I have already siged up, but I would liek to be prepared for the worst!

Thansk a lot

MisterGoof
1st October 2004, 12:41
The milage will be 40pm for fist 10k and then 25ppm
and well the £9 for lunch needs to be reciepted !!

Of course you have them !!!

men0bcs
1st October 2004, 12:44
Haha, well, luckily I haven't actually started working under them yet, first week next week, so I guess I'd better start saving those reciepts!

partimer
1st October 2004, 13:57
I know I shouldn't but I've got to ... :)

>entitled to £20 a day for being out of the house
>for 10 hours, and £9 for lunch.

I guess we should all take the scenic route to work (via the Lake District) so it'll take a minimum of 10 hours of your day. Paid twenty quid for a sight seeing trip is well worth it and that caviar at lunch is certainly getting cheaper !!

LOL.
No, I'm not having a dig at you. There's nothing stopping you from claiming what you like. Check the archives to see that we've done this to death on this very board.

men0bcs
1st October 2004, 14:06
haha, that was pretty much my reaction when they gave me a forecast of what I could be taking home. They call that £29 a day a subsistence allowance. I just assumed this was a standard thing to do, I have absolutely no experience in this at all!

From these two messages it looks like I will be putting all fo this additional income into a seperate account, ready to hand over to the tax man when he arrives, innevitably, in April!

I just want to know if this is all legitimate or not!

Buckstewerbuck
1st October 2004, 15:01
i think many umbrella companies have dispensations or erm...agreements (cough cough) allowing unreceipted daily subsistence depending on number of unsocialable hours worked.

Maybe that is what K&B have?

The legality of it? no idea..

Debbie Reinvented
1st October 2004, 20:51
Well you really ought to know

Dispensations are legal .. there are two. One that means the umbrella company does not have to declare the expenses paid to you on P11Ds at the end of the tax year. The other allows them to pay unreceipted round sum allowances.

BUT (and why do all umbrella companies forget to tell you this) they do not protect the individual. If the Inland Revenue decides to pick on you, you have to justify the expenses as being expenses reasonably incurred as part of the employment .....

So cover your back, keep records and get receipts wherever possible

Mark Snowdon
3rd October 2004, 11:20
OK,

13.50 a week is £58.50 a month which isnt so cheap and is in the range of what a real accountant might charge for running a ltd.

Going through a brolly does not give you anything extra that you could not do through a limited company.

I am getting bored with the rash of K&B plugs. Some time soon I am going to start deleting them. I take a very dim view of false postings, you know who you are.

Robot
3rd October 2004, 11:53
Through a limited Company you could take advantage of the 'Flat Rate VAT scheme’, this will increase your profits and could wipe out any accountancy fees being charged.

Your bookkeeping would be a lot simpler too.

4Contractors
3rd October 2004, 15:01
Using the accountant/limited option also offers contractors the opportunity to get up to £825 tax free from the Inland Revenue for doing PAYE filing online - most contractor accountants will do this for you automatically - ours certainly does.

Payments are as follows : -

2004/5 end of year filed online - £250
2005/6 end of year filed online - £250
2006/7 end of year filed online - £150
2007/8 end of year filed online - £100
2008/9 end of year filed online - £75

Not bad for doing nothing !!