Giant.... dispensation...ahem.

[Lewis]

Giant's system used to only allow the claiming of a fixed daily subsistence amount. e.g. there was no way of claiming only half their dispensation amount. I saw that as a clear indication they intended me to claim the full amount or nothing.

They certainly never mentioned anything whatsoever about calculating the difference and paying tax on it. Plus considering their product was specifically tailored to people that didn't have the knowledge or desire to do accounting, I would take this to mean they didn't think their clients needed to pay any extra tax (my interpretation only).

Then magically one day the system changed and you had to enter the actual amount instead of automatically getting given the max. It sounds like the B&B payment is like the old subsistence.

In my opinion nobody can reasonably be expected to infer from that mail that you should claim the maximum amount and then calculate the difference and pay tax on that! But of course GIANT are covered because you must indemnify then against challenges on your expenses ... great eh?!

[Tingles]

So,

Where do I notify the HMRC to difference between the £40 spent and the £90 claimed?

Life would be much easier under a Ltd Co.


Thanks for the good advice!


T

[The Lone Gunman]

Giants dispensation means that they can pay their employees expenses up to 90 pounds per day without seeing receipts.
You however have no such dispensation. If Hector comes a calling he will want to see receipts for all expenses (there are a couple of small exceptions).

It is you who will be facing legal proceedings though you may be able to recover your loses from GIANT given the evidence you have.

[Lewis]

It is you who will be facing legal proceedings though you may be able to recover your loses from GIANT given the evidence you have.

That's exactly why they make you indemnify them against any challenge from HMRC. I think they know exactly what they are doing.

[Tingles]

I've asked GIANT to return my original receipts and have advised them that I've decided to ask the HMRC directly - as I'm the one liable for any discrepancies....

Cheers!


T

[Lewis]

They don't seem to have learnt from this .... http://forums.contractoruk.com/accou...ighlight=giant

[TheFaQQer]

So,

Where do I notify the HMRC to difference between the £40 spent and the £90 claimed?

Life would be much easier under a Ltd Co.


Thanks for the good advice!


T

I would just ring your local HMRC office and ask them about it, and ask to speak to someone who knows about it.

[xoggoth]

Indeed, dispensations are just about not needing to declare amounts as part of standard reporting, P11D etc., don't mean you can get the max amount tax free.

[NotAllThere]

...Life would be much easier under a Ltd Co...

By George he's got it!

Interestingly, it was Giant, then known as IAS, recommended to me by Progressive - another paragon of integrity - who did the accounts for my first ltd co. When I came to shut that down, they neglected to tell me about my personal CGT allowance, so I paid considerably more tax than I needed to.

When I next created a ltdco, I did all the accounting myself. Nowadays, however, I use an accountant - but I still do the accounts myself, as it were, to check. But my current accountant is pretty good!

[Tingles]

Hi T,

Thank you for coming back to me and I’m sorry to hear that you feel that this information is incorrect. I can assure you that even if you only paid £40.00 for your Bed & Breakfast (and have the receipt to prove that you incurred this cost) you will be able to claim the full £90. This is due to the Dispensation that we have with the HMRC which is a formal agreement made between HM Revenue and Customs regarding allowable expenses that an employee may claim.

As a result of the dispensation the expenses the employee receives tax relief on them automatically. The dispensation means that the employer (giant) carries the risk of additional tax following an investigation instead of the employee. HM Revenue and Customs carry out routine audits on companies holding dispensations.

I hope this gives you the reassurance you need, however if you would like to have these receipts returned, please confirm this to me, as this will have an effect on your next payment.

I look forward to hearing from you whether you definitely want these receipts back and if you do have any further questions, please do let me know.


Regards






I've decided to get my receipts back and close GIANT at the end of my contract in a couple of weeks.....


Thanks for your comments......