Dispensation

[Nixon Williams]

It doesn't make sense to go with a brolly/composite now.

Since the new legislation was announced my composite demanded that I show receipts for all subsistence claims and travel. So I stopped claiming subsistence. You also won't be able to receive dividends from April. So there's no benefit.

I'm going to set up with a ltd company from April. Have a look at 1st Accountancy and Nixon Williams. They're relatively small firms who would most likely give you a better service at a lower fee.

We like to think so!

Alan

[monkeygeorge]

It doesn't make sense to go with a brolly/composite now.

Since the new legislation was announced my composite demanded that I show receipts for all subsistence claims and travel. So I stopped claiming subsistence. You also won't be able to receive dividends from April. So there's no benefit.

I'm going to set up with a ltd company from April. Have a look at 1st Accountancy and Nixon Williams. They're relatively small firms who would most likely give you a better service at a lower fee.

[To BI or not to BI?]

So where would you suggest i do that

Have a look at the menu on the left -----> You'll find a few companies. Also a browse through the forum will list other options. Some accountants will take care of setting up your own Ltd company, opening a business bank account as well as providing the usual accountancy services. Also, think about getting insurance (PL, EL, etc.) and probably it would be a good idea to join the PCG

[BrollyBabe]

So where would you suggest i do that

[Spartacus]

So what your saying is bugger the brolly go for the ltd option

Yes.

[BrollyBabe]

So what your saying is bugger the brolly go for the ltd option

[Newby]

The dispensation helps the brolly/composite/limited company in regard to the administration of your P11D. They dont have to report and send the revenue a long list of your business expenses along with all your receipts. It is also something that the revenue actually prefer, it means that they dont have to employee hundreds of grunts to quite literally go through each and every P11d and carrier bag of receipts!

However the rules on dispensations are that they shouldnt contain a profit element, P4, Giant have daily dispensations over £20 per day. No one in their right mind (unless they have a gorging eating disorder) could get anywhere close to this. This might have something to do with one of them now asking for all receipts for subsistence.

If you do want to go with a brolly, then go for one that doesnt contain a profit element within their dispensation. But setting up your own limited during the next few months is the only real way forward

[Spartacus]

Get your own Ltd. A brolly is just someone else sitting between you and the dough, skimming a cut.

[To BI or not to BI?]

Whys that? I'm really getting confused by all this, is it worth it?

Have a look at this for more info:
http://forums.contractoruk.com/thread12495.html

[Cowboy Bob]

Whys that? I'm really getting confused by all this, is it worth it?

Put it this way. Claiming expenses that you don't incur is a criminal offence. So if your brolly says that they have a dispensation of £90 per day, all that means is that you can spend up to £90 per day without showing them the receipts. It does not mean that you can automatically claim £90 if you haven't actually spent it and don't have receipts to back it up. The tax man can ask to see your expenses related receipts at any time - and if you don't have them you'll be in deep doo-doo.

Conversely, it also does not mean that the maximum amount you can claim is £90 either. All that would happen if you spent over the £90 figure would be that the brolly would be required to audit them.

Hence why the amount of dispensation makes no difference to you whatsoever - it makes no difference at all regarding the amount of expenses you can claim.

[BrollyBabe]

Yes. Don't do it.
Next

Whys that? I'm really getting confused by all this, is it worth it?

[To BI or not to BI?]

I'm currantly trying to choose a company to go through but all these dispensations are so long winded and full of jargon. Can anyone simplify it?

Yes. Don't do it.
Next

[DaveB]

And come April of this year the goal posts will be moving again anyway. You will almost certainly be better off setting up your own Ltd Co.

[Cowboy Bob]

Yes, the dispensation is for the brolly only and makes absolutely zero difference to you. You still need any and all receipts for the expenses you claim, so regardless of the dispensation amount that the brolly has negotiated this only affects whether you have to show those recipts to them as well as the tax man.

[BrollyBabe]

I'm currantly trying to choose a company to go through but all these dispensations are so long winded and full of jargon. Can anyone simplify it?