If an umbrella company claims that they have a special dispensation that allows them to accept larger expense claims or expense claims that other companies cannot, you’re dealing with an unscrupulous company. The same laws govern all umbrella companies, so they all must follow the same rules in order to be HMRC compliant.
When you are staying overnight to complete a project, you are allowed to claim up to £5 in the UK and £10 outside of the UK as a subsistence payment to cover expenses. You do not have to provide a receipt; however, you are only eligible to claim actual expenses. You cannot simply make a full claim for each night that you are away, unless you did actually incur costs.
Misconception Three: Paying A Higher Fee For An Umbrella Company Can Allow Me To Take Home More Of My Wages
Unscrupulous companies will sometimes claim that they can provide 80, 85 or 90 percent take home pay, provided employees pay a higher fee. This is simply false. The tax rates are universal, and every company must adhere to them. A company that is making those types of claims is likely not remitting tax payments properly or at all. Remember the only difference in take home between one Umbrella Company and another is just the margin (fee) charged.
Misconception Five: I’m Still Self-Employed Even If An Umbrella Company Pays Me
Once you sign an overarching contract of employment with an umbrella company, you are no longer self-employed. You become an employee of the umbrella company and are entitled to all of the benefits of employment.
Misconception Six: The Umbrella Company Protects Me From HMRC Enquiry
It is your responsibility to only claim legitimate expenses and to retain proof of those expenses to show HMRC if you are ever subject to HMRC enquiring into your claim. No company can guarantee that you will not be investigated for claims or any other income you may not have notified to HMRC.
My Advantage Umbrella, has been developed with a focus on service, on compliance and ethics.
What is different about us, firstly, all our staff and partners are all qualified accountants and tax advisors, we are part of a firm of Chartered Certified Accountants and as such our people are all regulated.
We will not put unrealistic figures on our website, we will provide an illustration based on your circumstances , we can do this over the phone and a full illustration will be emailed to you without obligation.
Dave Murphy and Mike Jackson have worked together for a number of years, setting up in practice in April 2014 the Accountancy Practice has gone from strength to strength. Advantage ATO was set up to provide accountancy and tax services and advice to individuals and small/medium business. Also providing services to contractors using their own limited companies.
Dave and Mike wanted to extend the offering to the contracting community by offering an Umbrella solution. Building on the level of service within the practice provided to all of our clients we have mirrored this in My Advantage Umbrella to ensure the best for all those that become employees.
