Doing one contract classed as permanent

[mjb1978]

Hi wondering if some of you nice people can clear an issue up I'm having with an umbrella company. I got made redundant from my job and went back into contracting and did one contract for 4 months as a field engineer and was offered a permanent job with another company after the contract finished so took that job up. I have now been issued a P11d form as they say as I only did one contract this is classified as my permanent place of work and all my milage I claimed is now taxable. Is this right as I have done single contracts in the past and never had a P11d form issued that I can remember.

Tried ringing HMRC but they are useless and struggled with what an umbrella company is. Any help would be really appreciated.

[malvolio]

Hi wondering if some of you nice people can clear an issue up I'm having with an umbrella company. I got made redundant from my job and went back into contracting and did one contract for 4 months as a field engineer and was offered a permanent job with another company after the contract finished so took that job up. I have now been issued a P11d form as they say as I only did one contract this is classified as my permanent place of work and all my milage I claimed is now taxable. Is this right as I have done single contracts in the past and never had a P11d form issued that I can remember.

Tried ringing HMRC but they are useless and struggled with what an umbrella company is. Any help would be really appreciated.

That is correct. One workplace has to be a permanent one, the umbrella are doing it properly. Expenses are not claimable but since you've claimed them you will have to pay the tax since they count as earned income.

[mudskipper]

That is correct. One workplace has to be a permanent one, the umbrella are doing it properly. Expenses are not claimable but since you've claimed them you will have to pay the tax since they count as earned income.

Different umbrellas seem to interpret the rules differently.

Some interpret the rule as that the intention at the outset needs to be to have only one assignment (or you stop claiming expenses once you know it's your only assignment). In this case it doesn't sound like the OP planned to have one contract.

[malvolio]

Different umbrellas seem to interpret the rules differently.

Some interpret the rule as that the intention at the outset needs to be to have only one assignment (or you stop claiming expenses once you know it's your only assignment). In this case it doesn't sound like the OP planned to have one contract.

Except he did.

HTH.

[TykeMerc]

If you were Field Engineering then mileage to base would be travel to the usual place of work not temporary, but the site to site stuff should be perfectly allowable.

[eek]

If you were Field Engineering then mileage to base would be travel to the usual place of work not temporary, but the site to site stuff should be perfectly allowable.

Yep, I think the "field" engineering bit will need to be explained to the umbrella to show that its perfectly acceptable mileage even when perm...

[Contreras]

If you were Field Engineering then mileage to base would be travel to the usual place of work not temporary, but the site to site stuff should be perfectly allowable.

Yep, I think the "field" engineering bit will need to be explained to the umbrella to show that its perfectly acceptable mileage even when perm...

Can't the OP just reclaim that via their self assessment return? They would enter the figure copied from the P11D and a figure equating to the element that they believed should be not taxed.

[TheCyclingProgrammer]

Can't the OP just reclaim that via their self assessment return? They would enter the figure copied from the P11D and a figure equating to the element that they believed should be not taxed.

They should but exempt mileage payments shouldn't even be on the P11D.