Umbrella Companies and SDC

[Moneymonster]

Hi Everyone

I'm just about to sign up to an umbrella company for my new contract and I have some questions relating to Supervision, Direction and Control. I would be most appreciative of any advice

1. Am I correct in thinking that if SDC does not apply, commuting costs can be deducted from the gross payment before tax (ie you get tax relief on them)?
2. Can this deduction be at source rather than claiming back via self assessment? (I've read conflicting information on this)
3. Who determines if SDC applies?
4. Is the contractor responsible for underpaid tax/NI if the 'no SDC' status is successfully challenged?

Kind Regards

[GhostofTarbera]

Umbrella Companies and SDC

Hi Everyone

I'm just about to sign up to an umbrella company for my new contract and I have some questions relating to Supervision, Direction and Control. I would be most appreciative of any advice [emoji4]

1. Am I correct in thinking that if SDC does not apply, commuting costs can be deducted from the gross payment before tax (ie you get tax relief on them)?
2. Can this deduction be at source rather than claiming back via self assessment? (I've read conflicting information on this)
3. Who determines if SDC applies?
4. Is the contractor responsible for underpaid tax/NI if the 'no SDC' status is successfully challenged?

Kind Regards

I’ve got this guys

1. No you can claim zero expenses (not even your accountant, travel or new laptops etc)
2. No see above
3. Nobody in this situation
4. No see above
5. Your most sensible question

Anything else ?


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