Umbrella Company Expenses
The umbrella company expenses that umbrella company contractors can offset against tax include travel and subsistence expenses, pension contributions, equipment like PCs and memberships of trade organisations.
However, Chancellor Geroge Osborne has decided to take away the right to claim travel and subsistence expenses against tax for umbrella company contractors.
This will come into effect in April 2016.
Umbrella Company Monthly Fee
Umbrella company contractors pay a monthly fee of over £100 to their umbrella company, basically to pay them.
If they are paying more to them than they can get back in tax deductions, they may decide it is not worthwile remainging in the umbrella company.
There are currently over 200,000 contractors in umbrella compani s in the UK.[caption id="attachment_881" align="alignnone" width="225"] Umbrella Company Expenses claimable[/caption]