Legal Expenses : Claiming Back

[Board Game Geek]

Afternoon,

I incuurred some legal invoices, in which I paid a contracts lawyer to review my contract.

I've just submitted these as expenses to my umbrella, and they inform me that "Regrettably these are not part of the dispensation agreement we have with HMRC for business expenses and cannot therefore be approved.

You are of course perfectly entitled to take this claim up with HMRC when you submit your annual return at the end of the tax year"

I was under the impression that any costs incurred as part of my employment, and within the dispensation guildelines, could be recovered.

After all, I incurred these costs personally, as part of my job, and have paid the solicitor out of my own pocket.

Any thoughts ?

Anyway I am PAYE, so I don't submit end of year annual returns.

[BlasterBates]

I think you can submit a return to claim money back. Shouldn't be a problem, if they are offsettable.

[Board Game Geek]

Thanks !

I'll find an accountant and ask him if he can do this for me.

Cheers !

[tim123]

Afternoon,

I incuurred some legal invoices, in which I paid a contracts lawyer to review my contract.

I've just submitted these as expenses to my umbrella, and they inform me that "Regrettably these are not part of the dispensation agreement we have with HMRC for business expenses and cannot therefore be approved.

You are of course perfectly entitled to take this claim up with HMRC when you submit your annual return at the end of the tax year"

I was under the impression that any costs incurred as part of my employment, and within the dispensation guildelines, could be recovered.

After all, I incurred these costs personally, as part of my job,

I don't think (technically) that you did. I can't see how getting a contract reviewed by a lawyer can be described as "in the course of your employment". It would be "before your employment". (and yes the law is that picky)

tim

[ASB]

If you decide to claim them (and as tim123 said it could be a bit questionable) and your employer will not reimburse you then the way ro do it is via your tax return. There is a box for offsetting claimable expenses and this reduces your taxable income accordingly.

[PhilAtBFCA]

Legal Expenses

Board Game Geek

For some expenses of your employment you can claim on your tax return.

However, for expenses that "put you in a poistion to be employed" such as legal advice on your IR35 status before your employment commences or whilst being in employment - these are not claimable against the tax paid on that employment.



Phil

[NotAllThere]

Afternoon,
I've just submitted these as expenses to my umbrella, and they inform me that "Regrettably these are not part of the dispensation agreement we have with HMRC for business expenses and cannot therefore be approved.

I though dispensations just meant that the employer (the umbrella) didn't need to see or check receipts. So the umbrella could reimburse the expense if they wanted to. Yet another reason to go ltd.

I ran a ltd co for years without a dispensation. It never caused trouble.

However, for expenses that "put you in a poistion to be employed" such as legal advice on your IR35 status before your employment commences or whilst being in employment - these are not claimable against the tax paid on that employment.

The legal advice does not put him in a position to be employed. He's already employed by the brolly. And he has no IR35 status as he is working through a brolly.

What was the nature of the contract reviews?

[blacjac]

The legal advice does not put him in a position to be employed. He's already employed by the brolly. And he has no IR35 status as he is working through a brolly.

What was the nature of the contract reviews?

WHS.

The contract review is to acertain the suitability of a client on behalf of his employer (the brolly), not to help him gain employment.

[PhilAtBFCA]

I though dispensations just meant that the employer (the umbrella) didn't need to see or check receipts. So the umbrella could reimburse the expense if they wanted to. Yet another reason to go ltd.

Not all there

Yes you are right - but only for the expenses specified in the dispensation, not any expense.

The employee might want to keep receipts anyway, to prove they incurred the expense.

Phil

[NotAllThere]

Nice unclear answer there Phil.

Does my employer need a dispensation in order for me to claim expenses? AIUI, no. But then i must supply a receipt.

So the brolly saying "sorry pal, it aint covered by our dispensation" is irrelevant. Yes?