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Brolly claims to have Special Arrangement with HMRC

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    Brolly claims to have Special Arrangement with HMRC

    I'm looking for an umbrella comapny to use for an upcoming contract.

    During my enquiries, I found one that claimed to have special dispensation from HMRC under which clients can claim £30 per night subsistence for an overnight stay rather than the normal £5.

    I'm alittle suspicious of this. Supposing there were an investigation and I was told that this set up was invalid. Who would be left carrying the can? My co. or the brolly? I'm assuming that I'd get details confirming the set up from the brolly in writing so I'd have something to use in my defence.

    #2
    A dispensation only relates to the reporting. Regardless of the dispensation you can only claim what you've spent. If they've told you otherwise they are encouraging you to commit tax evasion. Sounds like a great plan.

    Comment


      #3
      Originally posted by Alan @ BroomeAffinity View Post
      A dispensation only relates to the reporting. Regardless of the dispensation you can only claim what you've spent. If they've told you otherwise they are encouraging you to commit tax evasion. Sounds like a great plan.
      Hmmm... but I don't explicitly spend the £5 - at least I have no receipts to cover it & I've been claining that for years.

      Comment


        #4
        HMRC does not have 'special arrangements' with any company, umbrella or otherwise - I'd be very wary of an company claiming to do so
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        Comment


          #5
          Originally posted by Its An Interesting Thing View Post
          Hmmm... but I don't explicitly spend the £5 - at least I have no receipts to cover it & I've been claining that for years.
          This should provide some clarity for you over the £5 you mentioned

          https://www.gov.uk/expenses-benefits...enses/overview
          In Scooter we trust

          Comment


            #6
            Brolly claims to have Special Arrangement with HMRC
            As have many schemes and brolleys over the years, total tosh.
            You can read up on here, HMRC Scheme Enquiries, to see how people have been caught out.
            It will be you that gets the grief, rightly or wrongly, not the providers of such "services".

            If it is too good to be true, then its not. Simples
            The Chunt of Chunts.

            Comment


              #7
              If, as you say, you have claimed but not incurred these expenses, then you could be in a bit soapy bubble. If HMRC look at your return or the brolly's the following could be the outcome:

              HMRC: Have you incurred these expenses which you've claimed?
              You: No.
              HMRC: OK, then you owe us back taxes.
              You: how much:
              HMRC: £5 x 5 days X 46 weeks X 10 years X 40% tax = £4,600 plus interest and penalties. Let's call it £7,000
              You: Damn those pesky umbrellas.

              Comment


                #8
                Originally posted by Alan @ BroomeAffinity View Post
                If, as you say, you have claimed but not incurred these expenses, then you could be in a bit soapy bubble. If HMRC look at your return or the brolly's the following could be the outcome:

                HMRC: Have you incurred these expenses which you've claimed?
                You: No.
                HMRC: OK, then you owe us back taxes.
                You: how much:
                HMRC: £5 x 5 days X 46 weeks X 10 years X 40% tax = £4,600 plus interest and penalties. Let's call it £7,000
                You: Damn those pesky umbrellas who don't play by the rules who give the rest of the compliant umbrella companies a bad name.
                FTFY
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                Comment


                  #9
                  Originally posted by LisaContractorUmbrella View Post
                  FTFY
                  Indeed. Sorry about that :-)

                  Comment


                    #10
                    Originally posted by Its An Interesting Thing View Post
                    I'm looking for an umbrella comapny to use for an upcoming contract.

                    During my enquiries, I found one that claimed to have special dispensation from HMRC under which clients can claim £30 per night subsistence for an overnight stay rather than the normal £5.

                    I'm alittle suspicious of this. Supposing there were an investigation and I was told that this set up was invalid. Who would be left carrying the can? My co. or the brolly? I'm assuming that I'd get details confirming the set up from the brolly in writing so I'd have something to use in my defence.
                    Utter tosh.

                    HMRC does not do "special dispensation".

                    Ask them to prove it by showing you a signed letter from HMRC that is not a forgery.
                    Best Forum Adviser & Forum Personality of the Year 2018.

                    (No, me neither).

                    Comment

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