Claiming umbrella fee as an expense?

[IanIan]

Hi there,

Does anyone claim their weekly umbrella fee as a business expense?

Cheers, Ian.

[Ardesco]

How is it a business expense? If you are using an umbrella you are not running your own business you are an employee of the umbrella company.

[NotAllThere]

I would have thought the brolly fee would be deducted from the fee the agency/client pay the brolly. This would have the same effect on your take home pay as if you were able to claim it as an expense from the brolly.

[malvolio]

I would have thought the brolly fee would be deducted from the fee the agency/client pay the brolly. This would have the same effect on your take home pay as if you were able to claim it as an expense from the brolly.

Nope. He's an employee of the brolly. I'd like to see him submit an expense claim to his employer for their own fees and see how far it gets...

[spoons]

If I recall Parasol used to deduct the fee prior to working out PAYE/NI.

If that helps?

[malvolio]

If I recall Parasol used to deduct the fee prior to working out PAYE/NI.

If that helps?

The financial contract is between the agency and the umbrella. The umbrella will take their fees out first, then pay their employee, the contractor, their salary and expenses (if any...). the umbrella fees never get anywhere near the contractor's bank account.

[NotAllThere]

Nope. He's an employee of the brolly. I'd like to see him submit an expense claim to his employer for their own fees and see how far it gets...

Wake up!

I would have thought the brolly fee would be deducted from the fee the agency/client pay the brolly.

This would have the same effect on your take home pay as if you were able to claim it as an expense from the brolly.

At which point did I say he should submit or could submit an expense claim for the fees? If you look at parasol, they deduct their fees from the gross fees they receive.

Hah, you even said later "The umbrella will take their fees out first".

We're pointing out to the original poster that he isn't (or shouldn't be) paying his fees out of his taxed income. ( Or indeed anything that is, legally, money he has control over ).

[malvolio]

Wake up!



At which point did I say he should submit or could submit an expense claim for the fees? If you look at parasol, they deduct their fees from the gross fees they receive.

Hah, you even said later "The umbrella will take their fees out first".

We're pointing out to the original poster that he isn't (or shouldn't be) paying his fees out of his taxed income. ( Or indeed anything that is, legally, money he has control over ).

Yeah, I get the point. The OP was asking if he could claim his already paid up fees as a business expense though, wasn't he...?

Hey, it's been a long day...