P4 - Expenses

[mauryballstein]

Hi - I am struggling to undestand how P4 (and other umbrellas too) pay out expenses.

According to their website, "for every night that you enjoy a friend's hospitality, we'll give you £25."

Sorry but who pays for this ultimately? Do P4 charge this out to the client?

They also state that you can claim for any other business related purchases, and that these will remain the property of p4 during employment and be returned to p4 at the end of employment.

Does this mean if I need e.g a new toolkit then p4 will pick up the tab and I have to return the equipment to them at the end of the contract?

Apologies if I've missed something obvious!

Thanks

[simondolan]

Hi - I am struggling to undestand how P4 (and other umbrellas too) pay out expenses.

According to their website, "for every night that you enjoy a friend's hospitality, we'll give you £25."

Sorry but who pays for this ultimately? Do P4 charge this out to the client?

They also state that you can claim for any other business related purchases, and that these will remain the property of p4 during employment and be returned to p4 at the end of employment.

Does this mean if I need e.g a new toolkit then p4 will pick up the tab and I have to return the equipment to them at the end of the contract?

Apologies if I've missed something obvious!

Thanks

Short answer is that you pay for everything. It will come out of your gross income. What it means is that you receive the expenses before the deduction of tax and NI. So, the shiny new laptop you pay for will actually belong to P4 at the end of your contract with them.

You might want to do a search on P4 on this forum before signing up with them.

[mauryballstein]

If that's the case then it's absolutely crackers - how can they justify you paying for something and then taking ownership of it?

Also, the £25 they'll 'pay me' for staying at a friends just means that I'll be entitled to £25 of my gross as tax free. Surely the way they are proposing this is misleading? It appears as if I will actually receive an additional £25.

I don't think I did miss anything obvious then - Thanks for your help and I'll do my research!

[mauryballstein]

Short answer is that you pay for everything. It will come out of your gross income. What it means is that you receive the expenses before the deduction of tax and NI. So, the shiny new laptop you pay for will actually belong to P4 at the end of your contract with them.

But would I get 100% relief on something like that anyway? Wouldn't it be subject to capital allowances (assuming it doesn't qualify for 100% FYA)

[malvolio]

I think you need to go out and come in again...

Have you read the first timer guides we keep recommending?

And have you considered the possibility that the umnbrella company expense scheme is an advertising illustration, not a legitimate way to earn tax-free money?

And that claiming £25 for staying with a friend is dubious, unless you pay said friend at least £25 for their inconvenience, and could be construed as tax evasion?

Thought not...

[stevie]

Seems to me this thread is a bit contrived, SJD ContractorUmbrella and ContractorUk getting together to bash a competitor...

[malvolio]

Thud, thud, thud.....

If that is the level of your understanding, I suggest you go back to your train set.

[stan2484]

Seems to me this thread is a bit contrived, SJD ContractorUmbrella and ContractorUk getting together to bash a competitor...

You the Account manager for P4? These muppets should be renamed with Dick Turpin in the title, if you go and look at the threads on this forum and the guides spoken about previously, you wouldn't have even clicked on their link in the first place.

If you want an Umbrella then look at the ones which have links on this site namely contractorumbrella or Nolongerlimited these are decent umbrellas which explain everything easily and don't tell you to claim for stuff you are not entitled, they also follow the HMRC guidelines.

I also believe that P4 are the subject of a HMRC investigation (if thats not true then I am sure someone will correct me, but if not they should be!!) so that say's it all.

[NewbieContractor]

Buch of tits!!

They do not take ownership of laptops etc ... they get written off as depreciaton i believe...

Instead of people coming here for advice on companies, find dont u get off ur lazy fat arses and just phone the likes of greenlantern, p4, brooksons etc .. speak to them, ask ur questions, if ur not happy then do not go with them...

as opposed to asking (in alot of cases) a bunch of greedy wannabe's who act like there on a £700 pd contract when really there sitting in a dingy office earning 15 per hour and eating cheese rolls and stinking like black coffee...

I get fed up ur bitching of 'o why cant i take home 98% of my wages.. blah blah' ..

c0cks..

Newbie... out.

[malvolio]

As I always say, there is nothig like a well-reasoned argument for or agaisnt a proposition - and that was nothing like....

Seriously though, you are right to some extent - why not ask the providers why they seem to be able to do things differently to the rest of the world. Snag is, the people who need to ask those kinds of questions don't have the knowledge to judge the answers. Bit like going to a BMW gaage and asking them what's the best car to buy.