Expense policy to clarify

[andy-moo]

Hi Everyone,

This is just to respond to those that were giving me stick regarding the expenses i can claim.

May i add that i have spoke to my accountant and he has confirmed that the HMRC found this to be totally compliant.

Those who have been told "you can't claim because they travel to the same place of work" follow the link below. If you are on temporary assignment say '3 months at a particular site' for example then move onto another contract with another client you are compliant with the 24month rule, and you can claim up to the agreeable subsistence during your assignment.

And may i also add that they are an award winning Accountancy Company that is regulated by the Chartered Institute of Management Accountants (CIMA) and is recognised as a Quality Accountant with the Professional Contractors Group (PCG).

That’s why I am with them and that’s why I am receiving an awesome service. bye

http://www.danbro.co.uk/umbrella-com...ense-claim.htm

[LisaContractorUmbrella]

Hi Everyone,

This is just to respond to those that were giving me stick regarding the expenses i can claim.

May i add that i have spoke to my accountant and he has confirmed that the HMRC found this to be totally compliant.

Those who have been told "you can't claim because they travel to the same place of work" follow the link below. If you are on temporary assignment say '3 months at a particular site' for example then move onto another contract with another client you are compliant with the 24month rule, and you can claim up to the agreeable subsistence during your assignment.

And may i also add that they are an award winning Accountancy Company that is regulated by the Chartered Institute of Management Accountants (CIMA) and is recognised as a Quality Accountant with the Professional Contractors Group (PCG).

That’s why I am with them and that’s why I am receiving an awesome service. bye

http://www.danbro.co.uk/umbrella-com...ense-claim.htm

Can they provide you with a link to the section of HMR&C website that verifies this claim?

[Sausage Surprise]

Can they provide you with a link to the section of HMR&C website that verifies this claim?

That'll be the one where it says they won't ask for receipts if you're claiming £26 a day.

[andy-moo]

Can they provide you with a link to the section of HMR&C website that verifies this claim?

i suggest you click the link to the expense policy. it is very straight forward.

[Sausage Surprise]

i suggest you click the link to the expense policy. it is very straight forward.

I have and it's bollocks - ask them if they'll bale you out when the tax man asks for receipts.

[andy-moo]

i suggest you click the link to the expense policy. it is very straight forward.

And i will add that claiming UPTO the agreeable sub means you can only claim what you actually incur. if you incur £10 and the max sub is £26 you can still only claim the former.

keeping all receipts as i have been well informed about.

[gezzagregz]

correct

Andy-moo is correct.

What your trying to say is that no one can claim sub if they travel to the same place of work each day. thats bollocks.

if that place of work is deemed temporary, and you expect to go onto another contract with another client in accordance to the 24month rule you can claim the sub.

ta

[LisaContractorUmbrella]

"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" - Extract taken from a letter we received from the Inland Revenue

[TheFaQQer]

Hi Everyone,

This is just to respond to those that were giving me stick regarding the expenses i can claim.

May i add that i have spoke to my accountant and he has confirmed that the HMRC found this to be totally compliant.

Those who have been told "you can't claim because they travel to the same place of work" follow the link below. If you are on temporary assignment say '3 months at a particular site' for example then move onto another contract with another client you are compliant with the 24month rule, and you can claim up to the agreeable subsistence during your assignment.

And may i also add that they are an award winning Accountancy Company that is regulated by the Chartered Institute of Management Accountants (CIMA) and is recognised as a Quality Accountant with the Professional Contractors Group (PCG).

That’s why I am with them and that’s why I am receiving an awesome service. bye

http://www.danbro.co.uk/umbrella-com...ense-claim.htm

Actually, it doesn't say that you can claim up to £10 or up to £26. Read the policy carefully, and it says:

Where you are unable to obtain a receipt, and you are working at a temporary workplace, then within the umbrella company option subsistence can be claimed on the following basis -

*

Up to £10 if you work more than 5 hours a day not including travel time and excluding breaks
*

Up to £26 if you work more than 10 hours a day including travel time and excluding breaks

This does not say "you can claim £10 a day if you work more than 5 hours" or anything like that. It says that they will reimburse you for unreceipted expenditure, up to a given limit. That does not mean that you can claim £26 a day under the guideline of "I haven't got a receipt, therefore I'll claim it" - it means that if you are missing a receipt, then you can still claim for expenses that you incur, but they will limit this unless you have a receipt.

It's cleverly worded, but it does not mean that you can claim without incurring the expense. It does not say "if you work a full day, then you can claim an extra £26" - it says that you can be reimbursed for the expenditure, up to a limit of £26. These are very different interpretations of the same policy, which some umbrellas will use to imply that you can claim subsistence without incurring the expenditure.

As I have said in a number of threads now, I have a dispensation for my company that has no limit on it. If I write an expenses policy that says "For unreceipted susbsistence, you can claim up to £1000 a day" that HMRC would allow that in the event of an investigation? It's in line with the dispensation, in line with the company expenses policy, but (crucially) it's NOT in line with what HMRC will allow.

Again, as I have said a number of times, ask the umbrella to put in writing that they will indemnify you against the costs of any investigation and penalties incurred, if you claim "in line with their policy" of £26 a day with no receipts. If they will, then jump at the chance - and I'd consider moving to them too! However, they won't because they know that in the event of an investigation, you're well and truly fooked.

[Bluebird]

What they don't actually say is that there are different sets of rules for subsistence for those who incur expenses whilst living away from home to those who live at home and travel from home to work each day.

They have assumed that you are "staying away from home", which is why expenses are allowable for general subsitence.

If you live at home and travel to work ecah day, you can only claim expenses OUTSIDE of your normal working day [ ie if you usually finish @5 but work till 10 you can claim eveningmeal ].

As has been said many times the dispensation applies to an agreement between Danbro & HMRC, it in no way changes your relationship with HMRC and what they expect you to do if you are investigated personally.

If they are willing to guarentee you should HMRC fine you ect, then fine - but if you ask them directly I doubt they'll agree to this.

At the end of the day the simple answer is to only claim that which is incurred and that which you have a reciept for as per HMRC guidelines [ not some umbrella or agency ] - then you can't go wrong - afterall it's not like you're poorly paid is it ?