Giant.... dispensation...ahem.

[TheFaQQer]

I may have to change my mind. From the IR web site.
The bold bit is my emphasis and seems relevant.

You still need to keep the receipts, and can't claim what you don't spend, though. If you claim what you don't spend, then the employee needs to declare it as a BIK (since they won't get a P11D from their employers), and pay the tax on it.

[NotAllThere]

A dispensation also helps your employees. They do not have to include details of the expenses and benefits covered by the dispensation in their tax returns. Nor are the expenses and benefits included in either their tax assessments or PAYE codes.

The question hinges then on what happens during an investigation. If by virtue of my employers dispensation, I have no need to provide receipts, then all is ok. Otherwise I'm stuffed.

wrt why should we claim when an employee can't - an employee can when they are at a temporary workplace. Hence the two year rule.

In Europe, home to office travel is widely acceptable as tax deductable.

[The Lone Gunman]

I said I "may" have to change my mind. I will have to look into this.

What that paragraph seems to say is that any expenses covered under the dispensation can be ignored on any tax return. You do not need to show you claimed them, nor that you were paid them, even as BIK.
Effectively they do not exist to be enquired into.

Like I said, more bloody research. Where are the resident accountants when you need them.

[Alan @ BroomeAffinity]

Like I said, more bloody research. Where are the resident accountants when you need them.

As we've said, you can only claim what you spend. The dispensation means as an employEE you do not need to tax the expense and relcaim the tax on your tax return and the contractor as an employER does not need to declare the expense on your P11d.

You still need to incur the expense to claim it.

[The Lone Gunman]

As we've said, you can only claim what you spend. The dispensation means as an employEE you do not need to tax the expense and relcaim the tax on your tax return and the contractor as an employER does not need to declare the expense on your P11d.

You still need to incur the expense to claim it.

That is th epoint here though isnt it.
GIANT can pay up to 90 quid per day without receipts or record.
You do not have to account for those expenses in ANY tax declaration anywhere.
How is HMRC ever going to prove that you were paid those expenses, never mind whether you incured them or not?

Anyway, it is pointless me arguing here. I am not qualified so will have to get advice.
Excuse me for treating you lot as equaly unqualified.

[sidknows]

immune

we can all have our moan about whether its compliant or not but do giant or should i say their shareholders care?

they are a well known, high profile and profitable company and it seems immune to HMRC regulations as they don't hide what they are doing-- good luck to them --

go limited is the only answer to these umbrelal co's

[Fred Bloggs]

go limited is the only answer to these umbrelal co's

It would be well worth my while wrapping up my Ltd co and becoming a Giant Umbrella Employee if I really can get away with claiming £90 a day no questions asked.

[Alan @ BroomeAffinity]

Agree 100% with Sid. For every poster here who questions the dispensation arrangements there are probably a hundred who blindly do as Giant say.

You're right about profitable as well. Both Giant and Brookson returned profits of more then £5m in their last financial year. That was before MSC's were torpedoed though.

[Bradley]

Scale Rate Expenses

If its a scale rate expense then you dont need any receipts as employer or employee http://www.hmrc.gov.uk/manuals/eimanual/EIM05200.htm refers.

[gadgetman]

What about obtaining a dispensation for your own Ltd.

I know it can and has been done.

Best of both worlds?

It would be well worth my while wrapping up my Ltd co and becoming a Giant Umbrella Employee if I really can get away with claiming £90 a day no questions asked.