Subsistence claims and receipts

[Robot]

More info.......

http://forums.contractoruk.com/threadnav11507-2-10.html[

Robot

[Ardesco]

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.

The majority of people on this board are not stupid enough to do it, and are mainly LTD Co owners.

What you are doing is the equivalent of asking if it is alright to murder somebody. When everybody turns round and says, "NO, if you murder somebody and you are caught you will be locked up in jail for the rest of your life" you are saying, "Yeah whatever, I want to talk to somebody who has actually murdered somebody before I belive you!!!"

[Nixon Williams]

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

All companies must submit a Corporation Tax Return (CT600) each year - if you have a company I presume your accountant has done this?

Alan

[monkeygeorge]

Ardesco - Your analogy is not valid because a solicitor would never confirm to you that it is OK to murder someone.

Alan - I work through Giant, so I presume they take care of this.

[Ardesco]

But a solicitor would tell you that it was OK to kill somebody in self defence... It all depends how you have worded the question.

I very much doubt the tax man said that you can claim expenses that you have not incurred because there is a dispensation.

Lets start at the basics.

Are you claiming expenses that you have not incurred ? (e.g. are you claiming the full £10/day even though you are not spending £10/day on things that you can expense)

[monkeygeorge]

I hear exactly what you're saying! But it's only really worth discussing this with the Inland Revenue.

I'll post back with their response.

I don't want to do anything that will come back to haunt me anymore than you.

[malvolio]

That should be intersting then..

Hector - IR helpline.Can I have your NI number please. Ah yes, Mr George..., can I help?

MG - Yes, I'm thinking of claiming expenses I'm entitled to rather than have actually incurred.

Hector - You can certainly claim such things. Of course, we reserve the right to challenge any such claim when we check your SA form.

MG - Thank you, that's OK then {click}

Hector - Note to self - let's ask Compliance to check this customer's records for the last six years...

[Ardesco]

Oh and if you don't belive our word MonkeyGeorge..

Most umbrella companies will mention a ‘dispensation’ and the term is sometimes used in advertising. A dispensation will not tell you which expenses can be claimed it is merely an accounting tool for your umbrella company. Under normal accounting practise all expenses that a company processes have to be recorded on a P11D form which is sent to the Inland Revenue; an umbrella company’s dispensation means that this form will not be required for those expenses that they have listed. The dispensation does not relieve the contractor of any responsibility at all regarding the provision of receipts – they will be required if you are the subject of an Inland Revenue investigation. Nor does it mean that you can legitimately claim more expenses through one umbrella company than another, they have to be Inland Revenue approved and must be supported by receipts. To quote the Inland Revenue:
"I can confirm that contractors cannot automatically claim £21 per day (or any other amount) for each day they are at work. It is also worth saying the Inland Revenue would not give general approval of a company's expenses policy. A dispensation would never cover large amounts of unsupported expenditure"

http://forums.contractoruk.com/thread11349.html

Now with a bit of luck we will have less of the "You can claim what you want" mob around here. Not only are you being stupid but you are also potentially misleading a lot of people who could get into quite a bit of trouble by following bad advice!!!

[monkeygeorge]

Dont' waste your energies, I'd rather hear it from the horse's mouth. And especially not from an umbrella company that does not have such a dispensation and is in direct competition with those that do.
I'm not misleading anyone or giving any advice, I'm just asking for people (who themselves could be misleading others) to back up their claims.
If the IR agree with what you say I'd be happy to post it here as warning to others.

[boredsenseless]

That should be intersting then..

Hector - IR helpline.Can I have your NI number please. Ah yes, Mr George..., can I help?

MG - Yes, I'm thinking of claiming expenses I'm entitled to rather than have actually incurred.

Hector - You can certainly claim such things. Of course, we reserve the right to challenge any such claim when we check your SA form.

MG - Thank you, that's OK then {click}

Hector - Note to self - let's ask Compliance to check this customer's records for the last six years...

Alternatively they may just wait for 6 years and then check after all the longer you get away with it the more cocky and risk taking you become