Subsistence claims and receipts

[boredsenseless]

Firstly, the guy at the IR definitely knew I was an employee and not an umbrella company.

Just to make sure we're talking about the same thing, for those being investigated for Travel and Subsistence, which brolly company were you with, and did you spend the amount you claimed?

I've added a note on my tax return that I claimed subsistence for the time I was with shambolic Orange Genie, so lets see if they come back to me on that.

I don't doubt he said it to you but I would ask for it in writing if I was you, cos he'll have 'forgotten' about the conversation when you get investigated

[ASB]

I don't doubt he said it to you but I would ask for it in writing if I was you, cos he'll have 'forgotten' about the conversation when you get investigated

Strictly even if it's in writing it won't help. Advice given by the IR is generally "caveat emptor".

[Addanc]

The onus is firmly on the taxpayer to be able to prove the expense to the satisfaction of the man from the IR.

A pitty that the same rules don't apply to our horourable MPs!

[monkeygeorge]

I was with my own LTD.

And yes, I had spent the amounts claimed, and had receipts for all of it and a log of mileage in the two cars I'd used...

Came in very handy...

I owed them £26 odd in the end.

With respect, that's not the same as claiming through an umbrella that has a dispensation.

I'd like to hear from someone who has claimed through comapnies such as Giant and been investigated.

[Ardesco]

Well you don't have to belive us if you don't want to, it doesn't change the fact that claiming for expenses that you have not incurred is illegal and if/when you are found out you will be in big trouble.

You can claim what you want, however you take the risk of being dropped in a great big pile of tulipe if you are caught (same sort of thing happens if you do anything illegal).

If you are investigated and cannot prove that you made the purchases that you have said you made then the IR will screw you for every penny they can. They aren't here to help you, they are here to fill up government coffers so that El Gordo can blow the money on the Olympics/Third World Debt/Pay Rises for NHS Managers and other frivilous things!!!

[monkeygeorge]

I'm not trying to offend anyone. I just want to hear from someone with a dispensation agreement who has been investigated. There's been lots of scaremongering on this forum and until one of those people actually backs up their claim there's nothing to say that it is illegal.

It's all very well saying the claims are illegal, but isn't that the point of a dispensation - that the IR have agreed that receipts are not necessary?

[boredsenseless]

I'm not trying to offend anyone. I just want to hear from someone with a dispensation agreement who has been investigated. There's been lots of scaremongering on this forum and until one of those people actually backs up their claim there's nothing to say that it is illegal.

It's all very well saying the claims are illegal, but isn't that the point of a dispensation - that the IR have agreed that receipts are not necessary?

Obviously an employee of one of the umbrellas whose been burnt by our mutterings

[Nixon Williams]

I'm not trying to offend anyone. I just want to hear from someone with a dispensation agreement who has been investigated. There's been lots of scaremongering on this forum and until one of those people actually backs up their claim there's nothing to say that it is illegal.

It's all very well saying the claims are illegal, but isn't that the point of a dispensation - that the IR have agreed that receipts are not necessary?

NO!! A dispensation is to reduce paperwork for the employer and the Revenue. It is an agreement that the employer will only pay expenses covered by the dispensation.

The expenses have to be incurred and so you should have a receipt. A dispensation is not an agreement that receipts are not required. In any case this a PAYE area so you would still need recepts to support the deductions in the Corporation Tax return.

The message should be clear - KEEP RECEIPTS!

Alan

[Ardesco]

2 Questions:

1. Are you claiming the maximum amount that you can according to the dispensation (e.g. £10/day)?
2. Are you claiming this money without actually spending it on expensible items first?

If you answer yes to both of the above questions, you are breaking the law. No ifs, not buts. If you get caught you will be in big trouble and liable for back tax/fine/prosecution.

If you answer yes to 1, but no to 2, you are not breaking the law, however if the IR asks for proof of your expenses and you cannot provide them they will take the view that you have answered yes to both of the above questions and deal with you accordingly.

Do you now understand where we are coming from ?

[monkeygeorge]

Alan - what Corporation tax return? Is this in addition to the self assessment?

Ardesco - at the risk of going round in circles - yes, I hear what you're saying, and it makes sense, but I'd still like to hear from someone who has been affected to see that it works that way in practice.

The only way to settle this is to get it in writing from the IR, which I plan to do soon.