Umbrella questions about SDC expenses, pensions and Scottish tax bands Umbrella questions about SDC expenses, pensions and Scottish tax bands - Page 3
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  1. #21

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    GhostofTarbera's Avatar
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    Quote Originally Posted by BABABlackSheep View Post
    Updated an earlier post sorry.

    Certain companies do offer direct SIPP transfers.
    Which ones ?


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  2. #22

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    Quote Originally Posted by GhostofTarbera View Post
    Which ones ?


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    I don't trust the list but look at https://www.contractoruk.com/forums/...ml#post2717255
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  3. #23

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    Sorry to jump in, seems a little late given the speed these threads are going at at the moment, but here goes!

    Quote Originally Posted by gaz777 View Post
    So question 1:
    How does that put me with SDC and claiming expenses through an umbrella? CEST hasn't ruled me in and I suspect a manual determination would rule me out.I live in Glasgow while the client is in Edinburgh. Previously (through my limited company) I expensed train travel when working on site, and hot-desk rent for days I worked from Glasgow (I'm not a fan of working from home).
    OK so some companies will quote with an assumption that you maybe able to claim if you pass their SDC test. When I spoke with HMRC after the Public Sector role out the feedback was the if an assignment was classified as inside IR35 then a contractor would be highly unlikely to pass any SDC test. If you really want to query it, you would be best speaking with HMRC and asking them to determine your SDC position, but I am guessing most contractors won't want to speak up in case this raises queries over past outside roles.

    Quote Originally Posted by gaz777 View Post
    Question 2a:
    I have my own SIPP. Do any umbrella companies allow pension contributions into your own SIPP? Or do you have to use the umbrella's own pension scheme?
    Take a look here. Some do, some don't, you need to ask around. Those that do may charge an admin fee for administering it for you, so make sure you ask.

    Quote Originally Posted by gaz777 View Post
    Question 2b:
    Which umbrella companies allow you to make additional pension contributions ie above the statutory minimum by law?


    Quote Originally Posted by gaz777 View Post
    Question 3:
    I scoured the web last night, but couldn't find any umbrella calculators that took into account Scottish tax rates/bands. Are there any out there?
    If not, can anyone give me the formula for working it all out (including expenses and additional pension contributions)?
    I am more than happy to run you a bespoke calculation, just let me know the details here. Just won't give you false hope with any expenses - sorry

  4. #24

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    Quote Originally Posted by gaz777 View Post
    Hi Everyone,
    So question 1:
    How does that put me with SDC and claiming expenses through an umbrella?
    I think if a client makes an inside determination via an SDS, then I expect it is unlikely HMRC would allow relief on T&S expenses. I have presumed that the umbrella companies would use an inside SDS to supersede their own SDC assessment/questionnaire. I could be wrong on this.

    Where a client has completely by-passed IR35 and is only engaging contractors via brollys (no SDS), then my expectation was that the SDC assessment could still be considered and possibly allow expenses.

    Based on what I hear from other contractors, I am surprised at the inconsistency across the various umbrellas regarding the processing of expenses (specifically T&S). It seems some brollys do not accommodate allowing relief at source and advise you to claim it back on your self-assessment. Whereas others brollys appear to have systems/processes in place that allow you to claim the relief at source (Paystream being an example).

    Does anyone have insight into how this different behavior is possible?

  5. #25

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    Quote Originally Posted by BABABlackSheep View Post
    You can also claim training courses and equipment if they are needed to perform the contract role.
    Well that's worrying in the first place! Equipment has to be used "wholly and exclusively" for the purpose of the assignment only, both of those mentioned could be used for other assignments so would not ever have been allowed to be claimed even when we could process for tax relief purposes!

  6. #26

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    Quote Originally Posted by tenten View Post
    I think if a client makes an inside determination via an SDS, then I expect it is unlikely HMRC would allow relief on T&S expenses. I have presumed that the umbrella companies would use an inside SDS to supersede their own SDC assessment/questionnaire. I could be wrong on this.

    Where a client has completely by-passed IR35 and is only engaging contractors via brollys (no SDS), then my expectation was that the SDC assessment could still be considered and possibly allow expenses.

    Based on what I hear from other contractors, I am surprised at the inconsistency across the various umbrellas regarding the processing of expenses (specifically T&S). It seems some brollys do not accommodate allowing relief at source and advise you to claim it back on your self-assessment. Whereas others brollys appear to have systems/processes in place that allow you to claim the relief at source (Paystream being an example).

    Does anyone have insight into how this different behavior is possible?
    Hi tenten,

    I agree with what you've said.

    If the client has given an SDS which indicates an 'inside' status, then the umbrella employer would be unlikely to allow expenses (other than mileage to temporary work sites). If no SDS has been given (like we've seen in the financial sector), then expenses are potentially claimable, once the umbrella employer has done their own assessment.

    As for why some umbrellas don't process expenses, I think it's either not understanding the rules, or being too risk averse. If the worker is not under SDC, then the umbrella can pay mileage through payroll (under AMAPS) because this isn't affected by the change in the salary sacrifice rules, and help the contractor log the other expenses (travel by public transport, subsistence, training, etc) so that these can be claimed at tax year-end.

    Thanks


    Zeeshan

  7. #27

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    Quote Originally Posted by DolanContractorGroup View Post
    Hi tenten,
    As for why some umbrellas don't process expenses, I think it's either not understanding the rules, or being too risk averse. If the worker is not under SDC, then the umbrella can pay mileage through payroll (under AMAPS) because this isn't affected by the change in the salary sacrifice rules, and help the contractor log the other expenses (travel by public transport, subsistence, training, etc) so that these can be claimed at tax year-end.

    Thanks Zeeshan
    Hi Zeeshan. Thanks for the reply. That has helped me understand the difference and ties in with the information (some of it second hand) I have gathered. The gap was that I, and others, aren't aware that there is a distinction between T&S and "mileage" - the latter being a sub-category of T&S.

    I presume this is how your company (Dolan/Contractor Umbrella) operate? If there's no SDC then you allow mileage relief at source, and, have an expenses system that supports the contractor claiming the remaining T&S relief via their self-assessment?

  8. #28

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    Quote Originally Posted by tenten View Post
    Hi Zeeshan. Thanks for the reply. That has helped me understand the difference and ties in with the information (some of it second hand) I have gathered. The gap was that I, and others, aren't aware that there is a distinction between T&S and "mileage" - the latter being a sub-category of T&S.

    I presume this is how your company (Dolan/Contractor Umbrella) operate? If there's no SDC then you allow mileage relief at source, and, have an expenses system that supports the contractor claiming the remaining T&S relief via their self-assessment?
    Yes, that is correct.


    Thanks

    Zeeshan

  9. #29

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    First, a big thanks to Lucy for sorting me out with calculations.

    I think I'll have to give travel expenses a miss, but I do plan to use salary sacrifice as a tax efficient way for additional pension contributions.

    I was chatting about a different permanent job that offered healthcare as part of the package.
    Is that something that could be done through an umbrella via salary sacrifice too? Is there anything else that could be done that way too such as life insurance?

    Thanks

  10. #30

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    I've been selecting a brolly today and of the four I spoke to, two of them seemed unsure on what expenses, if any, could be claimed. I am obviously assuming 0, but two also said £25 a week expenses for traveling to the main location would be fine and if the client asked me to travel to other locations, I could claim for those.

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