Umbrella Companies

Just had my agency on the phone stating that Mr.Taxman is not happy with drivers going through umbrella companies and were all getting reverted back to a P.A.Y.E system, we can stay on the higher rate and still get no holiday pay or drop the rate down and accrue holiday.
I’ve never liked being on the umbrella scheme so i’m all for it, just have to check all the details when I receive my new terms in the post.

And so it begins…

I reckon this is going to become a very familiar story over the next year. Goods news is that you can still claim much of what you did under the umbrella company such as mileage, clothing for work, PPE etc etc by keeping records/receipts and submitting a P87 Expenses in Employment form at the end of the tax year. The only difference is you have to do it yourself and have to wait until after the end of the year to get the money bacl but you’re not paying an umbrella company £1000+ per year to do it.

name the agency, it may be beneficial to anyone else who works thru them, albeit maybe at a different branch

One I do work for is Alliance Personnel in Birmingham

How do agencies that do “non driving assignments” get all those expenses on the sheet that one should only get for driving? - LIke nights out, meal away from home, fuel to distant yard, etc?

I wonder if the taxman is going to jump on those firms most obviously mickey mouse first, when their operations methods are put under the X-Ray…

Winseer:
How do agencies that do “non driving assignments” get all those expenses on the sheet that one should only get for driving? - LIke nights out, meal away from home, fuel to distant yard, etc?

What makes you think such expenses are only allowable for driving jobs■■?

How do you get “night out” money on an 8 hour agency shift at somewhere like RSU or MacDonalds? :unamused:

Winseer:
How do you get “night out” money on an 8 hour agency shift at somewhere like RSU or MacDonalds? :unamused:

Work away from home?

Winseer:
How do you get “night out” money on an 8 hour agency shift at somewhere like RSU or MacDonalds? :unamused:

You (probably) don’t - but “night out money” aka Subsistence is not restricted to driving jobs, and is tax-deductible. Same applies to mileage/travel expenses to another location or workplace and meals if working away from home.

Scouse67:
we can stay on the higher rate and still get no holiday pay or drop the rate down and accrue holiday.

How on earth can they offer that option? :confused:

Rolled-up holiday pay

Holiday pay should be paid for the time when annual leave is taken. An employer cannot include an amount for holiday pay in the hourly rate(known as ‘rolled-up holiday pay’). If a current contract still includes rolled-up pay, it needs to be re-negotiated.

Source: gov.uk/holiday-entitlement-r … the-basics

Someone needs to sit down with them and teach them the basics of employment law :imp: