If you are employed by an umbrella company, you may be claiming temporary workplace expenses and used to having them reimbursed tax free. This is because the umbrella company is contracting you out to a series of temporary workplaces and therefore is entitled to reimburse these expenses out of its income generated by your performing services on temporary assignments.
However, if you decide to leave the employment of the umbrella company then the workplace which was previously temporary effectively becomes permanent because the umbrella company is no longer intending on contracting you out to further temporary workplaces. This is because by virtue of your intention to not be employed any longer by the umbrella company, you will not be moving to another workplace and therefore your last workplace is not temporary. Therefore, HMRC will not accept temporary workplace expenses as a tax free payment as they become ordinary commuting.
If you are working through an umbrella company and they don’t change the treatment of the expenses once it becomes clear that your employment will be ending, the umbrella company is not complying with the relevant legislation, putting you and itself at risk of an unpaid tax and national insurance bill.
Green Lantern prides itself on complying fully with its requirements in all aspects of UK legislation and we work hand in hand with Professional Passport, our industry’s compliance body, to ensure that we do not expose you to any unnecessary risks. If you want to work with a company which ensures that your protection is our priority, give us a call on 0207 164 2116.