Working through an umbrella company offers an ideal first step into contracting, without all the hassle and responsibility of paperwork. By joining Pecunia, we’ll be with you all the way, with employment support and benefits that are second to none.
We’ll handle your administration for you, calculating your tax and NI contributions and making payments to HMRC. At the same time, you’ll be paid swiftly and accurately, and there will always be someone available to talk to if you have any queries or concerns.
One of the benefits you’ll enjoy when working with Pecunia Pro Ltd is the ability to claim and be reimbursed for legitimate business costs and expenses – as long as they’re incurred during an assignment. The types of costs and expenses that can be claimed and reimbursed are dependent on the type of assignment you’re working on and whether it’s subject to supervision, direction or control (SDC).
The things you can claim for are determined by HMRC guidelines so all umbrella companies should follow the same process.
If there is the right to supervision, direction or control, a compliant umbrella proposition is:
• No T&S expenses, employed with umbrella benefits
If there is no right to supervision, direction or control, tax relief can be given at source for:
• Mileage only expenses
Alternatively, if there is no right to supervision, direction or control, the individual can reclaim tax relief via annual Self-Assessment, or P87 form. Umbrellas can support contractors in both options.
Government legislation introduced in April 2016 means some umbrella companies no longer allow contractors to claim home-to-site travel and subsistence expenses.
There are 2 main tests to see if temporary workers can claim expenses on their assignments. The first being whether there is the right to Supervision, Direction & control on the temporary worker. If the worker passes this first test, the next stage is whether the end client has more than 1 office.
Temporary workers can claim expenses providing there is no right to Supervision, Direction or Control (SDC) and also that the end client the temporary workers is assigned to work for is a multi-site company.
A multi-site company is a company who has more than 1 office and as a temporary workers, there is reasonable expectation that the temporary workers could work at any of the company sites/offices. If a company has just the 1 office, unfortunately there is no claim for expenses.
To ensure full compliance with the ever changing umbrella payroll world, Pecunia Pro Ltd enlist the services of Chartergate Legal Services Ltd who are experts in providing advice covering Employment Law & Tax Law. Chartergates have a specialist team who ensure Umbrella companies follow their advice.