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dspsyssts
26th May 2011, 06:55
Anyone got any experience of this?

What chance is there of getting a pull if you work with an umbrella company?

Churchill
26th May 2011, 07:24
Anyone got any experience of this?

What chance is there of getting a pull if you work with an umbrella company?

Why would you? You shouldn't even be on HMRCs radar. The umbrella will deduct Tax, Employee and Employer NI. Keep your payslips and you'll be ok even if the umbrella goes belly up. Which happened to me when I used an umbrella set up by a bloke called Solomon Williams, a bloke who used to tell everyone he was a chartered accountant, it turns out that at the time he wasn't! <---- Fact, take me to court if you want Solomon, I'd just love to meet you.

If you get pulled at all it will be because you've been fraudulent with your expenses.

Hector
26th May 2011, 08:32
Anyone got any experience of this?

What chance is there of getting a pull if you work with an umbrella company?Provided that you have receipts for all those expenses that you have claimed then you don't have anything to worry about if you work through an Umbrella.

You do have all those receipts don't you?

dspsyssts
26th May 2011, 08:36
If you get pulled at all it will be because you've been fraudulent with your expenses.

It was along the lines of what chance you being investigated to validate the authenticity of your expenses.

Wonder how many people have had to experince this or is it so rare it hardly ever happens?

Churchill
26th May 2011, 08:51
It was along the lines of what chance you being investigated to validate the authenticity of your expenses.

Wonder how many people have had to experince this or is it so rare it hardly ever happens?

Why not ask the umbrella company directly?

dspsyssts
26th May 2011, 08:57
Im interested in other contractors experiences.

b0redom
26th May 2011, 09:00
TBH, it sounds like the question you're really asking is:

I want to claim for expenses I've not really incurred. What are the chances I'll get away with it?

Personally for the extra couple of quid you're probably claiming, I wouldn't do it. I like to sleep at night. If you want more money legally, set up a Ltd.

AtW
26th May 2011, 09:01
Im interested in other contractors experiences.

Those of them who had new girlfriend named Bubba are no long as talkative as they used to be.

HTH

dspsyssts
26th May 2011, 09:19
Enough of the conspiracy theories already!

Im just asking if any other contractors using an umbrella company have any experience of bing investigated over their expenses.

Churchill
26th May 2011, 09:20
Enough of the conspiracy theories already!

Im just asking if any other contractors using an umbrella company have any experience of bing investigated over their expenses.

Why?

dspsyssts
26th May 2011, 09:24
Why not.

EternalOptimist
26th May 2011, 10:53
What chance is there of getting a pull if you work with an umbrella company?

A lot depends upon your incomings, out goings, and whether you have anything odd or strange about your profile



:rolleyes:

Churchill
26th May 2011, 10:55
Why not.

None of your business, for one.

doodab
26th May 2011, 11:07
A lot depends upon your incomings, out goings, and whether you have anything odd or strange about your profile

Like a really long nose.

LisaContractorUmbrella
26th May 2011, 12:19
Enough of the conspiracy theories already!

Im just asking if any other contractors using an umbrella company have any experience of bing investigated over their expenses.

If you use a decent umbrella company they should be investigating your expenses and advising you what can and cannot be claimed; if you have to wait for Hector to come after you, your brolly didn't do their job properly.

minsky1
26th May 2011, 13:32
I dont see what being client's disguised employee - sorry, an umbrella co's employee has anything to do with it.

As an employee, I would guess your expenses should be declared on your Self Assessment. Anyone who has to submit an SA100 is fair game for a random compliance review.

Never been under an umbrella co, but my ltd has had reviews a few times in the last 15 years. They will inevitably find some detail to pull you up on.

Maximum amount they have stung us for so far is about 3k. Turnover is about 400k with a 30k plus PAYE bill, so 3k is peanuts really.

LisaContractorUmbrella
26th May 2011, 13:53
I dont see what being client's disguised employee - sorry, an umbrella co's employee has anything to do with it.

As an employee, I would guess your expenses should be declared on your Self Assessment. Anyone who has to submit an SA100 is fair game for a random compliance review.

Never been under an umbrella co, but my ltd has had reviews a few times in the last 15 years. They will inevitably find some detail to pull you up on.

Maximum amount they have stung us for so far is about 3k. Turnover is about 400k with a 30k plus PAYE bill, so 3k is peanuts really.

As an employee of an umbrella company your expenses will be processed each time you are paid; declaring them again on your SA would cause you problems with HMR&C as you would be claiming the tax relief twice. Normally expense claims are recorded for HMR&C, by employers, on a P11d; umbrella companies apply for dispensations so that this is not necessary. However, dispensations are only granted if you can prove that you have procedures in place to verify all the expenses that you process; HMR&C can also remove the dispensation if they have reason to believe that expenses are not being dealt with correctly or the umbrella company is not compliant.

Churchill
26th May 2011, 13:54
I dont see what being client's disguised employee - sorry, an umbrella co's employee has anything to do with it.

As an employee, I would guess your expenses should be declared on your Self Assessment. Anyone who has to submit an SA100 is fair game for a random compliance review.

Never been under an umbrella co, but my ltd has had reviews a few times in the last 15 years. They will inevitably find some detail to pull you up on.

Maximum amount they have stung us for so far is about 3k. Turnover is about 400k with a 30k plus PAYE bill, so 3k is peanuts really.

3K and a little flag saying that you're possibly dishonest and worth keeping an eye on.

minsky1
26th May 2011, 14:27
3K and a little flag saying that you're possibly dishonest and worth keeping an eye on.

Yep, thats right. I would never dream of claiming hotels and meals on that trip to Alton Towers we had earlier in the month on the company after that :)

Didnt I read somewhere (albeit a long while ago) that they were looking at paying commission to staff on income generated by compliance reviews?