Do I have to complete tax return?

[raataja]

I've been contracting in UK since September 2009 and I am using Giant as umbrella company. I've asked Giant whether I need to complete tax return, but they directed me to check HMRC. I've checked HMRC web pages and I am still not sure whether I should complete tax return or not.

I know that I do not have to complete tax return as giant is paying TAX and NI through PAYE, but I claim accommodation expenses all the time due to temporary place of living, so my expenses exceeds limit (check quote from HMRC page below) of £2500 per year.

This is from HRMC page:
"Do you need to complete a tax return?

You need to claim certain expenses or reliefs

If you're employed and want to claim for expenses or professional subscriptions of £2,500 or more, you'll need to complete a tax return."

In my understanding Giant has Dispensation Agreement with HMRC and they have to report all expenses to HMRC, so do I have to report them also in my tax return, because my expenses exceeds limit? Can someone confirm if I understood this correctly?

[Zippy]

Giant's dispensation means that you do not have to report expenses on a tax return. They effectively promise HMRC that your expenses are accurate (because they have your receipts and have checked them). This practice is common in many large companies and I've never encountered this £2500 limit.

Why don't you give them a call and check? Remember you are an employee working for a company with a dispensation.

[LisaContractorUmbrella]

If your umbrella company has been processing your expenses then there should be no need to complete a tax return unless you have a source of income other than through PAYE. However, it may be that the umbrella company's dispensation does not cover the level of expenses that you have incurred; it may be that anything that works out at more than e.g. £70 per night cannot be claimed under the terms of the dispensation. Your umbrella company should be able to confirm this for you.