Brolly claims to have Special Arrangement with HMRC

[Jetstar125]

There is no dispensation with HMRC.

Hello and good day.

I am not an employee of HMRC and have never worked there. I am the European sales manager for a contractor management company based in the UK, Germany, Holland, Belgium, Italy and Luxembourg. I've also previously been practice manager for a firm of tax refund accountants.
HMRC provide rules and examples of those rules on their website. They are easily found on the HMRC website and make common sense. personally I would be wary of any 'brolly' company declaring they have a special relationship with HMRC. The best relationship to have with HMRC is a compliant one! You are allowed when working in the UK, mileage and subsistence when working as temporary contractor , your accountant can advise these allowances, and you can obtain them from HMRC. My day job involves the tax and compliance affairs of UK and European contractors and the importance of ensuring my clients (contractors, agencies and employing clients) are correct and compliant so that everyone has peace of mind.. What I am observing are more investigations by HMRC involving contractors working in the UK and Europe and shortfalls or non payment are quickly demanded. If you are in doubt about anything you read about dispensations, high retention rates and special relationships with HMRC, then get a second opinion.

I'm looking for an umbrella comapny to use for an upcoming contract.

During my enquiries, I found one that claimed to have special dispensation from HMRC under which clients can claim £30 per night subsistence for an overnight stay rather than the normal £5.

I'm alittle suspicious of this. Supposing there were an investigation and I was told that this set up was invalid. Who would be left carrying the can? My co. or the brolly? I'm assuming that I'd get details confirming the set up from the brolly in writing so I'd have something to use in my defence.

[BrilloPad]

I have dispensation for BrilloBrolly. You keep 99pct. It is QC backed.

Just post your account details and I will get you started.

[LisaContractorUmbrella]

Utter tosh.

HMRC does not do "special dispensation".

Ask them to prove it by showing you a signed letter from HMRC that is not a forgery.

To clarify - HMRC do issue dispensations to umbrella companies and there will be an accompanying letter. What they do not do is issue 'special' dispensations which allow you to claim expenses over and above those permitted by HMRC

[webberg]

I'm looking for an umbrella comapny to use for an upcoming contract.

During my enquiries, I found one that claimed to have special dispensation from HMRC under which clients can claim £30 per night subsistence for an overnight stay rather than the normal £5.

I'm alittle suspicious of this. Supposing there were an investigation and I was told that this set up was invalid. Who would be left carrying the can? My co. or the brolly? I'm assuming that I'd get details confirming the set up from the brolly in writing so I'd have something to use in my defence.

Utter tosh.

HMRC does not do "special dispensation".

Ask them to prove it by showing you a signed letter from HMRC that is not a forgery.

[Alan @ BroomeAffinity]

FTFY

Indeed. Sorry about that :-)

[LisaContractorUmbrella]

If, as you say, you have claimed but not incurred these expenses, then you could be in a bit soapy bubble. If HMRC look at your return or the brolly's the following could be the outcome:

HMRC: Have you incurred these expenses which you've claimed?
You: No.
HMRC: OK, then you owe us back taxes.
You: how much:
HMRC: £5 x 5 days X 46 weeks X 10 years X 40% tax = £4,600 plus interest and penalties. Let's call it £7,000
You: Damn those pesky umbrellas who don't play by the rules who give the rest of the compliant umbrella companies a bad name.

FTFY

[Alan @ BroomeAffinity]

If, as you say, you have claimed but not incurred these expenses, then you could be in a bit soapy bubble. If HMRC look at your return or the brolly's the following could be the outcome:

HMRC: Have you incurred these expenses which you've claimed?
You: No.
HMRC: OK, then you owe us back taxes.
You: how much:
HMRC: £5 x 5 days X 46 weeks X 10 years X 40% tax = £4,600 plus interest and penalties. Let's call it £7,000
You: Damn those pesky umbrellas.

[MrMarkyMark]

Brolly claims to have Special Arrangement with HMRC

As have many schemes and brolleys over the years, total tosh.
You can read up on here, HMRC Scheme Enquiries, to see how people have been caught out.
It will be you that gets the grief, rightly or wrongly, not the providers of such "services".

If it is too good to be true, then its not. Simples

[The Spartan]

Hmmm... but I don't explicitly spend the £5 - at least I have no receipts to cover it & I've been claining that for years.

This should provide some clarity for you over the £5 you mentioned

https://www.gov.uk/expenses-benefits...enses/overview

[LisaContractorUmbrella]

HMRC does not have 'special arrangements' with any company, umbrella or otherwise - I'd be very wary of an company claiming to do so

[Its An Interesting Thing]

A dispensation only relates to the reporting. Regardless of the dispensation you can only claim what you've spent. If they've told you otherwise they are encouraging you to commit tax evasion. Sounds like a great plan.

Hmmm... but I don't explicitly spend the £5 - at least I have no receipts to cover it & I've been claining that for years.

[Alan @ BroomeAffinity]

A dispensation only relates to the reporting. Regardless of the dispensation you can only claim what you've spent. If they've told you otherwise they are encouraging you to commit tax evasion. Sounds like a great plan.

[Its An Interesting Thing]

I'm looking for an umbrella comapny to use for an upcoming contract.

During my enquiries, I found one that claimed to have special dispensation from HMRC under which clients can claim £30 per night subsistence for an overnight stay rather than the normal £5.

I'm alittle suspicious of this. Supposing there were an investigation and I was told that this set up was invalid. Who would be left carrying the can? My co. or the brolly? I'm assuming that I'd get details confirming the set up from the brolly in writing so I'd have something to use in my defence.