Ivans
Dont do it
This (in blue) is one of my posts on the TES forum:
Beware of third
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pay
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processors (known as umbrellas) - what they are telling you is illeagal regarding claiming travel expenses.
They are very, very good at convincing you - dont be fooled - thay claim to have authority from HMRC - they dont - they use generic terminogy(applies to everyone).
This is my initial post from an earlier thread:
As an accountant and supply teacher I have come across a number of supply teachers who are operating as a limited company/self employed/umbrella company and saving tax.
I have looked into to this in great detail and would strongly advise against it.
Re: claiming mileage/expenses to reduce your taxable income look here:
HMRCdotgovdotuk- EIM70755 in the seach box. You CANNOT claim expenses - read it carefully.
Re operating as a limited company (known as an intermediary) and paying dividiends (no nic) instead of salary look here:
HMRCdotgovdotuk/ir35/responsibilitesdothtm
Again - against regs/the law.
HMRC investigate people as and when they can. They are stretched - so a number of teachers are getting away with it at the moment. The current govt are keen to look into this sort of thing - this is tax evasion - breaking the law!
I can point you to other blogs/website etc... just let me know through here.
Being investigated would result in backtax, penalty. Not to mention the stress and cost (you will have to pay an accountant to help provide what HMRC demand of you - attending interviews, providing paperwork etc)
I have had clients in the past who have sufferd high blood pressure etc... Its not pleasant. HMRC are not pleasant to you if they feel you are trying to cheat them.
The accountant/provider/umbrella etc dont care , they wont tell you this - they are only after a fee. The buck will stop with you as far as HMRC are concerned.
My friendly/free advice - dont do it - be an employee on paye. You may be storing up trouble.
Dont believe a word of umbrella companies and the like - tell other teachers the same.
See this link to the whole thread on the TES website where I have been posting.
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prob - search 'umbrella corporations' on tes supply teachers forum)
Its exploitationa and a scam - beware.
If you would like to discuss further - let me know on here - spread the word to other teachers.
Rgds
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