Hi
Not sure if anyone can advise me, I work on a freelance basis for a few companies, in the middle of which I was offered some agency contract work.
I use an Umbrella as I don't have a Limited company; the work is in 4 hour stints and can vary from nothing in a month to working 2 to 3 days a week for weeks (all from home). I also have a few other sporadic activities which are freelance and included in my tax returns - I have professional indemnity insurance for this - plus am covered by the umbrella company.
I'm on a BR tax code with the Umbrella company, although may change this if the work continues and increases - the company take quite a sizeable chunk on a good month before deducting tax and (where applicable) NI.
I'm after some advice as to how to deal with this on my tax return - all my income and expenditure is on a cash basis - I don't earn a fortune - being disabled and not in a position to work away from the home for long periods any more, I take what I can get basically.
There are no Dividends because I'm not a director - so they take a chunk out of my gross income for fees and pension, then deduct tax and NI from the remaining amount.
For the purposes of the tax return, is the money the umbrella company take off me (before tax and NI) redundant?
Also, some of the software and equipment I use cover's both sets of work.
I claim no expenses through the umbrella company
Hope the above makes sense
TIA
Not sure if anyone can advise me, I work on a freelance basis for a few companies, in the middle of which I was offered some agency contract work.
I use an Umbrella as I don't have a Limited company; the work is in 4 hour stints and can vary from nothing in a month to working 2 to 3 days a week for weeks (all from home). I also have a few other sporadic activities which are freelance and included in my tax returns - I have professional indemnity insurance for this - plus am covered by the umbrella company.
I'm on a BR tax code with the Umbrella company, although may change this if the work continues and increases - the company take quite a sizeable chunk on a good month before deducting tax and (where applicable) NI.
I'm after some advice as to how to deal with this on my tax return - all my income and expenditure is on a cash basis - I don't earn a fortune - being disabled and not in a position to work away from the home for long periods any more, I take what I can get basically.
There are no Dividends because I'm not a director - so they take a chunk out of my gross income for fees and pension, then deduct tax and NI from the remaining amount.
For the purposes of the tax return, is the money the umbrella company take off me (before tax and NI) redundant?
Also, some of the software and equipment I use cover's both sets of work.
I claim no expenses through the umbrella company
Hope the above makes sense
TIA
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