Umbrella Companies

[LisaContractorUmbrella]

They do pay dividends, but in order to do this they make me a director a
a ltd company which is justa ltd company within there organisation (non profit making etc)

so thats how they get round that.

Any recommendations ?

Dave

Hi DaveP

The MSC legislation basically states that you cannot receive dividends through a third party company, only through your own limited company over which you must have financial and adminstrative control. If you do not have a company bank account, don't determine your own salary etc etc you are using a scheme that is unlawful.

HTH

[malvolio]

I am somewhat bemused with DaveP's post.

I am with Mantor.co.uk and I have never had a problem.

Nuff said. You don't know the rules on expenses and £20 a week is more than I pay for MyCo's accountant, who a lot of people say is too expensive anyway.

You do have a problem, you just don't know what it is...

[LJames75]

Obviously I must have been mis-informed then back in March/April 07 by the Inland Revenue.

And the booklet they sent out to me is total lies.

As when Mantor sent out the email, they gave us all a contact number for the IR help line.

And I put across several scenarios to the IR, as I called them 3 times to recheck with them. And they calculated everything for me there and then.

They told me what I could claim and could not claim in terms of travel expenses under umbrella.

[pisces]

I had an email from Orangegenie yesterday highlighting the two recent IR35 wins for HMRC, they were trying to scare me into using them again by suggesting my Ltd wasn’t safe any more!

I think a retaliation letter bomb is in order

[malvolio]

Obviously I must have been mis-informed then back in March/April 07 by the Inland Revenue.

And the booklet they sent out to me is total lies.

As when Mantor sent out the email, they gave us all a contact number for the IR help line.

And I put across several scenarios to the IR, as I called them 3 times to recheck with them. And they calculated everything for me there and then.

They told me what I could claim and could not claim in terms of travel expenses under umbrella.

Are you travelling to client's site once a week and staying away from home for four nights. If so you can legitimately claim £5 a night sundry expenses and hotel bills at cost and your evening meal. That's it. Not much scope for profit, is there.

Or if you are travelling daily , you can claim mileage at 40p a mile (for a while) or rail fares at cost. That stops once you know you are going to be there more than 24 months. Plus, of course, you can't claim subsistence since you aren't working away from home unless you're working more than 14 hour days.

Them's the rules which are the ones in the HMRC's guides Because if you're claiming more than that, (a) you're one of the reasons we get punitive tax rules for small businesses and (b) you're commiting tax evasion, not avoidance.

Get it?

[LJames75]

I start my commuting by public transport at 04:30 in the morning, and arrive at the clients site at 08:00.

I leave the clients site at 16:30 and return home via public transport at 19:00hrs, sometimes later.

I claim for my daily bus and train fares, as the route I travel does not qualify for a season ticket. And I am on the buses & trains before 09:05 therefore along with everybody else, subjected to high cost in fares.

Yep penalised for going to work....

And I claim for my baguette meal deals. And that is all I can claim for as outlined by the IR guide.

Some other "umbrella companies" have said that I can claim extra for being out of the house for 12 hours, this being allowed to claim £21 a day in subsistence as well as a few extra bit and bobs.