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CLSO2 and Expenses : Can you reduce your bill ?

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    CLSO2 and Expenses : Can you reduce your bill ?

    All,

    1st up, I am not an accountant, not affiliated to any Big Group, members, accountants or anyone else related to this subject, so take this as a topic for discussion that may or may not help you depending on your circumstances.
    I have been asked many times on PM and threads, so put this summary together for you.


    History
    • I was with AML from 2012-14 for 18 months under whatever loan scheme they were running at the time
    • I moved in 2014 to a Ltd company with a proper accountant.
    • AML passed my details to HMRC back in 2016 (ish) and since 2016 I have been under investigation for 18 months and my accountant has been dealing with it for me.


    Expenses
    • HMRC wanted £38K from me for the tax on the loans for 2012-14
    • I was travelling 150 miles a day in my own personal car to get to the contract
    • I was told by AML that I could not claim mileage and so I never did in my SA returns for the period
    • My accountant successfully argued with HMRC that if they were retro taxing me for those years, I had a right to retro claim the expenses for those years too.
    • He won and HMRC took the mileage into consideration and dropped the bill to £33k
    • I settled this week.


    Summary

    So this information may or may not help you, I don't know, but it worked for me under my circumstances and with my accountant producing full calculations and presenting them to HMRC.
    Maybe I got lucky, maybe HMRC couldn't be bothered to check the figures and saw me wanting to settle and said, what the &*^*, we agree. I don't know

    My accountant only contested the mileage as all other expenses I could not really claim for and they were small in comparison to the mileage. Also we didn't want to seem to cheeky with HMRC
    My accountant also tried to offer them reduced figure (about 80%) for a quick settlement, they basically laughed. Works with VAT man, but not with HMRC

    I hope this helps prove it is possible to get bills reduced via expenses and there is some wiggle room if you have the right person on board to do your figures.
    Of course this all depends on your contract / expenses / amounts and above all an accountant with balls and knowledge to produce the required proof and figures.

    All in all, it has cost me about £1000 accountancy fees to go from start to finish. So a little saving in money terms, but a hell of a lot of saving in stress terms having my accountant do the hard work.
    Last edited by catanonia; 27 April 2018, 18:12.

    #2
    Thanks for this, I’ve been asked numerous times this week about claiming expenses. Officially HMRC stating 100% certainly not an option, however as this shows, there’s no harm in asking I guess and I’ll happily continue to do so. Worst case is they repeatedly say no (and get highly stressed at me for asking but I won’t be losing any sleep over that)

    Comment


      #3
      Thanks for highlighting this catanonia. It would appear that pension contributions would also be a factor.

      Comment


        #4
        Originally posted by Instrumental View Post
        Thanks for highlighting this catanonia. It would appear that pension contributions would also be a factor.
        Apparently so, if you have the capital to do this. Buit again i am no expert, far from it, always seek professional advice.

        Comment


          #5
          Pension contributions

          I've knocked up a PDF about this.

          https://forums.contractoruk.com/hmrc...ml#post2547811

          Comment


            #6
            Originally posted by phil@dswtres View Post
            Thanks for this, I’ve been asked numerous times this week about claiming expenses. Officially HMRC stating 100% certainly not an option, however as this shows, there’s no harm in asking I guess and I’ll happily continue to do so. Worst case is they repeatedly say no (and get highly stressed at me for asking but I won’t be losing any sleep over that)
            My original returns were submitted as self employed. Does this mean I can claim expenses?

            Comment


              #7
              Originally posted by GUD View Post
              My original returns were submitted as self employed. Does this mean I can claim expenses?
              Get an accountant who knows this area and ask them.

              Comment


                #8
                Catanonia - I am also in a very similar situation - could you let PM me your accountant - would really appreciate this, thank you



                Originally posted by catanonia View Post
                All,

                1st up, I am not an accountant, not affiliated to any Big Group, members, accountants or anyone else related to this subject, so take this as a topic for discussion that may or may not help you depending on your circumstances.
                I have been asked many times on PM and threads, so put this summary together for you.


                History
                • I was with AML from 2012-14 for 18 months under whatever loan scheme they were running at the time
                • I moved in 2014 to a Ltd company with a proper accountant.
                • AML passed my details to HMRC back in 2016 (ish) and since 2016 I have been under investigation for 18 months and my accountant has been dealing with it for me.


                Expenses
                • HMRC wanted £38K from me for the tax on the loans for 2012-14
                • I was travelling 150 miles a day in my own personal car to get to the contract
                • I was told by AML that I could not claim mileage and so I never did in my SA returns for the period
                • My accountant successfully argued with HMRC that if they were retro taxing me for those years, I had a right to retro claim the expenses for those years too.
                • He won and HMRC took the mileage into consideration and dropped the bill to £33k
                • I settled this week.


                Summary

                So this information may or may not help you, I don't know, but it worked for me under my circumstances and with my accountant producing full calculations and presenting them to HMRC.
                Maybe I got lucky, maybe HMRC couldn't be bothered to check the figures and saw me wanting to settle and said, what the &*^*, we agree. I don't know

                My accountant only contested the mileage as all other expenses I could not really claim for and they were small in comparison to the mileage. Also we didn't want to seem to cheeky with HMRC
                My accountant also tried to offer them reduced figure (about 80%) for a quick settlement, they basically laughed. Works with VAT man, but not with HMRC

                I hope this helps prove it is possible to get bills reduced via expenses and there is some wiggle room if you have the right person on board to do your figures.
                Of course this all depends on your contract / expenses / amounts and above all an accountant with balls and knowledge to produce the required proof and figures.

                All in all, it has cost me about £1000 accountancy fees to go from start to finish. So a little saving in money terms, but a hell of a lot of saving in stress terms having my accountant do the hard work.

                Comment


                  #9
                  Originally posted by nicks View Post
                  Catanonia - I am also in a very similar situation - could you let PM me your accountant - would really appreciate this, thank you
                  Nicks : you need more posts before I can PM you.

                  Better not post details of my accountant here, probably break some rules.

                  Comment


                    #10
                    This is extremely interesting.. especially as I still have receipts for accommodation (£4.4K) and mileage that I could never claim for at the time which would equal (£5.2k) for the same period. 9.6K
                    From what I can work out myself if that was deducted from my 'charge' then Im looking at around 3K bill
                    What the name of your accountant?
                    thanks in advance

                    Comment

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