The 3 Most Common Myths about Umbrella Companies

Contractorumbrella has relaunched itís ever popular ëMyths and Factsí page on itís website.

The most common myths it appears are those that relate to expense claims, which are obviously close to most or probably all contractorsí hearts and wallets/purses.

Gaining reliable and easy to understand information about what contractors can and cannot expense, isnít as easy as it may appear. Even HM Revenue and Customs struggle to condense such information, indeed their ë2007 Expenses and Benefits - A tax guideí is a whopping 100 pages long.

The three most commons myths in a survey of contractors were:

1. Myth: A daily subsistence allowance is an expense I can claim, without receipts, in fact I can claim it even if I didnít actually buy anything.

2. Myth: A 'special dispensation' with the Inland Revenue means one Umbrella Company can allow contractors to claim more expenses than another.

3. Myth: I can claim breakfast, lunch and dinner meal allowances as an expense EVERY day no matter where I am.

The revamped webpage now has thirteen myths and facts and is viewed daily by thousands of contractor, freelancers and consultants.

Lisa Keeble, Managing Director Contractorumbrella comments ìit is extremely difficult to gain safe and ethical advice as a contractor. The implications of getting it wrong can be time consuming and very expensive with the Revenue clawing back lost tax and NI contributions, as well as levying financial penaltiesî.

The Myths and Facts page can be found at: http://www.contractorumbrella.com/umbrella_companies.html, there are also a number of other guides, reports and calculators contractors may find useful including: a first timers contractor guide, a guide to using an Umbrella Company and a take home pay calculator.

If contractors have any question about contracting or would like any further advice please call our New Client Services Team on 01206 713680 or e-mail info@contractorumbrella.com