Umbrella company won't process expenses

[Xaromir]

I am working through an umbrella company and have found a permanent job - not what I want but it's all I can get and my current contract is ending.

I emailed my umbrella company last night to inform them and this morning they dropped a bombshell - they will no longer process any expense claims for me.

Because I've been busy I have about four months to go through, and they are refusing to touch them.

The email references only working at one location since I started with them and because of me stating I'm not working at another this has now become my 'permanent workplace'.

I phoned them about this and they aren't budging. Supposedly the 'only reason' I've been able to claim expenses up to now is because I basically stated that I would work on various temporary assignments at various temporary locations or something like that. Sounds a bit dodgy to me?

I asked what would have happened if I hadn't mentioned I wouldn't be working another contract, finished the current one and just asked for a P45 and they didn't really have an answer.

I have two issues:

1) Are they right? All this sounds odd
2) If they're right, am I going to get a tax bill at the end of the year?

[Malvolio]

Who knows. What does your contract with the umbrella say on the subject? Also, if you have a designated permanent workplace, which is what you seem to be saying, then you can't claim expenses for working there anyway.

Expenses are not tax-free income, despite appearances, so yes, you may well get a tax bill. Then again, on the off chance you haven't actually spent the money, where's the problem?

[Beefy198]

I think what you need to do here is refocus your thoughts a bit.

Umbrella expenses are a contentious issue anyway. What you're basically doing is becoming an employee of a company, but then moving the goalposts slightly and saying "well, I'm still being contracted out and working at different sites, so I have a right to claim certain expenses against my tax".

And when you do that, you have to remember that you're doing something that other employees in this country can't do. You've joined a company, worked at one place and claimed deductions from your tax bill. Is that fair?

[Azeey]

Cheer up. If you have four months of expenses backlogged you might not have got them all through by the end of that contract anyway. Pip pip.

[Xaromir]

My argument with them still goes on....

Originally Posted by Malvolio

Who knows. What does your contract with the umbrella say on the subject? Also, if you have a designated permanent workplace, which is what you seem to be saying, then you can't claim expenses for working there anyway.

Expenses are not tax-free income, despite appearances, so yes, you may well get a tax bill. Then again, on the off chance you haven't actually spent the money, where's the problem?

But I'm confused about how they can one day say that I have a temporary workplace, and then suddenly decide it's not temporary. I'm worried about any tax liability and want to make sure I haven't had this service missold to me.

Originally Posted by Beefy198

I think what you need to do here is refocus your thoughts a bit.

Umbrella expenses are a contentious issue anyway. What you're basically doing is becoming an employee of a company, but then moving the goalposts slightly and saying "well, I'm still being contracted out and working at different sites, so I have a right to claim certain expenses against my tax".

And when you do that, you have to remember that you're doing something that other employees in this country can't do. You've joined a company, worked at one place and claimed deductions from your tax bill. Is that fair?

Again, does this mean they have missold the service to me? If so I want to claim this as damages! I'll put their reputation on the line if need be.

Originally Posted by Azeey

Cheer up. If you have four months of expenses backlogged you might not have got them all through by the end of that contract anyway. Pip pip.

That's not the point. I think they're misrepresenting their service and potentially leaving me with tax liabilities. That's not on.

[Pistachio]

Which bit did they lie about?

[Malvolio]

Originally Posted by Pistachio

Which bit did they lie about?

None of it. They're right, he's wrong. Shame about that...

[Xaromir]

They lied because when I initially spoke to them because I was told that I could claim certain expenses to reduce my tax bill. They NEVER mentioned working on more than one contract. It was simply that I could claim them once I joined them.

What's more it is very very dodgy that if I hadn't told them I was leaving I could have carried on claiming these expenses, but because I have suddenly everything changes.

I expect this happens a lot but they take advantage of the fact that you're new to this area. Are these companies not regulated? A financial services company could not missell insurance like this!!

[Pistachio]

Originally Posted by Xaromir

They lied because when I initially spoke to them because I was told that I could claim certain expenses to reduce my tax bill.

Which was correct

Originally Posted by Xaromir

They NEVER mentioned working on more than one contract.

Did you ask?

Originally Posted by Xaromir

It was simply that I could claim them once I joined them.

Which, like I said, was true at the time.

What's more it is very very dodgy that if I hadn't told them I was leaving I could have carried on claiming these expenses, but because I have suddenly everything changes.

Why wouldn't you have told them you were leaving?

Originally Posted by Xaromir

I expect this happens a lot but they take advantage of the fact that you're new to this area. Are these companies not regulated? A financial services company could not missell insurance like this!!

Regulated to a degree, but certain industry bodies mean they often self-regulate and much more importantly websites and forums like this one keep them in check too.

[Xaromir]

Originally Posted by Pistachio

Did you ask?

How was I meant to know to ask?