Read this on another site last night...Shout99.
"HMRC auditing Umbrella Company:
An Umbrella Company I used to work for during most of 2006 is currently being audited by HMRC.
The Umbrella Company used to pay out an expense "allowance" without the need for it's employees to produce expense reports or provide receipts.
Recently I and a number of ex employees of this umbrella company were approached by the scheme provider to retrospectively produce expense reports for the periods in question."
Ok fair enough HMR&C have a right to review, can not disagree with that but then I read this further down the thread...
"I contacted the lady who runs the umbrella company regarding the dispensation they had with the HMRC at the time. Her response was "we worked on the guidlines of 'reasonable expenses' in line with the industry(up to £90.00 per night) but did not hold a dispensation certificate at that time. I am concerned that this may now put me in a different situation if a dispensation agreement was not in place at that time."
Glad I never ever did the umbrella route... but this must serve as a warning to others about dispensations, receipts and reading the small print in agreements.
"HMRC auditing Umbrella Company:
An Umbrella Company I used to work for during most of 2006 is currently being audited by HMRC.
The Umbrella Company used to pay out an expense "allowance" without the need for it's employees to produce expense reports or provide receipts.
Recently I and a number of ex employees of this umbrella company were approached by the scheme provider to retrospectively produce expense reports for the periods in question."
Ok fair enough HMR&C have a right to review, can not disagree with that but then I read this further down the thread...
"I contacted the lady who runs the umbrella company regarding the dispensation they had with the HMRC at the time. Her response was "we worked on the guidlines of 'reasonable expenses' in line with the industry(up to £90.00 per night) but did not hold a dispensation certificate at that time. I am concerned that this may now put me in a different situation if a dispensation agreement was not in place at that time."
Glad I never ever did the umbrella route... but this must serve as a warning to others about dispensations, receipts and reading the small print in agreements.
Comment