Most freelance and self employed contractors in the UK will be aware of the current hype surrounding expenses paid by umbrella companies to their employees. The umbrella company, Liberty Bishop, explains how to ensure legal compliance.
Harpenden, UK, September 22, 2009 — With the HMRC threatening to investigate the policies of umbrella companies, many contractors have been left wondering about how their umbrella company could be affected.
It is perfectly reasonable to expect HMRC to take action if a loss of revenue is suspected due to non-legitimate expenses being reimbursed to employees, whether via a dispensation containing excessive daily allowances, or by poor policies adopted by umbrella companies to monitor their employees intentions and work history.
Wesley Scott from the umbrella company, Liberty Bishop, explains: “In our May 2009 eBrief we reiterated the current legislation and the rules surrounding travel and subsistence expenses when attending a temporary workplace.”
Mr. Scott goes on to say: “In addition to this information you should also consider whether it is your intention to gain further contracts at a different workplace through your current umbrella company upon the expiry of your current contract. This is an important factor when deciding if you should be claiming expenses.”
For contractors intending to use an existing contract as a stepping stone to a permanent position, they should think carefully before claiming any expenses relating to their attendance at a temporary workplace.
Mr. Scott says: “Liberty Bishop do not offer excessive round sum allowances and do not use dispensations as a tool to market increased levels of take home pay. It has always been our policy to reimburse expenses only when receipts are provided by our contractors.”
For those concerned about their current working arrangements they should contact their current umbrella company for guidance and clarification of the current legislation.
For further information about umbrella companies and compliant contractor accounting visit http://www.libertybishop.co.uk
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Contact :
Wesley Scott
Liberty Bishop
Clayton House
3 Vaughan Rd, Harpenden
Hertfordshire AL5 4EF
0800 055 6376
[email protected]
http://www.libertybishop.co.uk
