Inland Revenue Dispensation........

[passthevas]

EBTs

some how I knew you raise dignatio, to confused the punters. Dignatio was not the legality of EBTs for tax planning. was it !!!!!

It is about the other class of P1cks "the former IT contractor who know more than the former Tax inspecters". and then did every thing 1/2 cocked thinking he can run it with a bit of excel. and then money comes flowing in at a rate he can't handle resulting in some £2M sitting in the wrong bank accountant at the wrong time

[passthevas]

I'm het up about ....

UC that don't disclose their fee's on their web sites and UC that claim "generous" expense allowances that turn out to be the same last century stuff.

then there is the IR35 scam, and the gross conflict of interest when all the accountants sold thier clients up the river for 12 peieces of silver (AKA £5,000 expense allowance). then started marketing UC's at 6%,5%,3%,2.5% . so b4ir25 they charged $700, now they can get £3,000 , do you think these guys are lobbing the gov't to abolish IR35. But there are guys on this thread who keep bending over for them.


I'm not all bad simons's UC seems to be the cheapest on the block. but he needs those receipts. Thats the other scam simon gets to keeps the 17.%5 VAT on your reciepts.

[passthevas]

ASB - thats interesting..

I gather you are talking "pre denpensation" times.

But I do find it interesting that the IR Audit gave you sign-off a letter saying "the payments to the employee were tax deductable and not a benefit" then to have another part of the IR reverse that decision.

Are you sure ?

being happy is different from authorsing a denspenation.

also say the company had your receipts. so what reciepts were you flashing to the IR the second time round.

[Simon SJDaccountancy]

School

Did you learn to spell at the same place they taught you about tax and accountancy?

[Debbie Reinvented]

Re: School

Nice one Simon

:rollin

[WellwoodHoyle]

Does it depend on the wording of the dispensation?

I am almost afraid to make a comment on this topic, but here goes....

I do have an IR dispensation in front of me which I obtained for one of my PSC clients, which clearly states that receipts are required to support travel, business entertaining, sundry business items, and telephone call charges for them not to be reported on the P11ds,

But,

It does allow for the payment of fixed rate round sum subsistence allowances based upon the location and duration of the business journey.

What is important is that throughout the letter, it refers to "production of a receipt" for the other types of expenditure, but in the fixed rate round sum allowance section, there is no mention at all of receipts or other supporting documentation to prove the expenditure actually happened - merely some form of evidence that the journey took place and the time away from normal place of work.

Having looked through the dispensations received for my clients, it is clear that different tax offices provide very different wordings of their dispensation letters - perhaps that is why there is such a conflict of opinion on this topic.

I would take the view that the exact wording of the IR dispensation letter applies - which of course, is dependant upon the wording of the dispensation application letter sent to the IR in the first instance.

[xoggoth]

Re: Does it depend on the wording of the dispensation?

"I would take the view that the exact wording of the IR dispensation letter applies - which of course, is dependant upon the wording of the dispensation application letter sent to the IR in the first instance."

It would be good of that were true. I have a letter from the revenue, bless their incompetent little socks, telling me that due to the simple fact that my expenses were declared on the P11D there could be no liability to tax on them. The only good thing about them is that they make almost as many mistakes in one's favour as against it. One only challenges their opinions in the second case of course.

[dazza12]

Re: One for simon

You don't think that passthevas could be from a certain umbrella Co who give rather large, unreceipted dispensation "allowances" do you?

That wouldn't also be the same Brolly that has a habit of using an Indian call centre would it? Nice touch - especially when lots of contractors were having their jobs outsourced.

[passthevas]

Re: don't be afraid... I was feeling lonely

WellwoodHoyle, don't be afraid.

Thanks for some productive input.

[Simon SJDaccountancy]

Re: don't be afraid... I was feeling lonely

Wellwood,

The wordings of the dispensations do change, but the dispensation merely gets rid of the need to report the payment on the P11d.

The Revenue will always require evidence (usually receipts) that the expense was actually incurred. If no evidence can be produced then the Revenue will disallow the expense and the individual will be charged to tax on it.