• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Pie in the Sky

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Pie in the Sky

    To all contractors who need to buy themselves an Oxford Dictionary.

    The word 'Expense.'

    A 'cost' or 'charge' incurred for a good or service - an amounted expended to receive such goods or services.

    'Expenses'

    Reimbursement of such costs or charges paid out for an allowable good or service incurred in the course of business. This could be a like-for-like amont or a tax free allowance called a dispensation.

    What it doesn't mean:

    Reimbursement for 'costs' or 'charges' not expended in the first place. In other words, if there was no cost or charge there is no reimbursement of the same.

    You need receipts to claim expenses and you need to have spent the money in the first place for which these reciepts demonstrate proof when asked.


    #2
    [Picky]You need receipts to claim expenses[/Picky]

    Actually you don't.

    What you do need, in general, is evidence. This being an audit trail that your investigating inspector will find acceptable. This can take many forms. He may be prepared to accept taxis with no other evidence than being able to demonstate the journey actually took place.

    He may be prepared to accept small per diems - when you can prove you were away. He can be reasonably pragmatic in this area (I've never had trouble with 5 per day incidentals).

    What one of course can be pretty sure of is he won't just accept "but I've just claimed 500 gpb per week because the brolly had a dispensation".

    Comment


      #3
      Originally posted by ASB
      [Picky]You need receipts to claim expenses[/Picky]

      Actually you don't.

      What you do need, in general, is evidence. This being an audit trail that your investigating inspector will find acceptable. This can take many forms. He may be prepared to accept taxis with no other evidence than being able to demonstate the journey actually took place.

      He may be prepared to accept small per diems - when you can prove you were away. He can be reasonably pragmatic in this area (I've never had trouble with 5 per day incidentals).

      What one of course can be pretty sure of is he won't just accept "but I've just claimed 500 gpb per week because the brolly had a dispensation".
      I think you're being pedantic by picking up my word 'receipts.' These are the normal proofs given but my main point was about actually needing to spend the money to claim and having proof - which are normally reciepts. I don't think I made any point suggesting that an alternative wouldn't be acceptable.

      All your point does is confuse the issue again and give the impression at first glance that you can still claim without spending.

      Was it really necessary to make any point at all? Surely contractors would find it easier just to keep their receipts if they need to send them on to an accountant?

      I don't mind being picked up if I make a big mistake when giving advice. I do mind being picked on when you are merely scoring a cheap point.

      Comment


        #4
        I did say that was I being picky. The total point I was trying to make was that you don't necessarily need a receipt for everything - this can be extremely difficult to obtain.

        I entirely agree that you have to actually spend it to be able claim it. I just disagree slightly on the mechanics of proof when it comes to the investigation. Stick with this principle and it's fine - but anybody claiming lots on the back of a dispensation is headed for major trouble.

        [Strictly there are limited circumstance where it is not actually necessary to establish spending money to be able to cliam it. One that spring straight to mind is incidental overnight expenses surrounding overnight stays.]

        Comment

        Working...
        X