Can not claiming enough expenses arouse suspicion?

[RichardCranium]

I did once get pulled up by an accountant for not claiming enough expenses. He soon corrected that.....

I haven't had service like that from an accountant for over ten years. They all seem good at crossing things off but can't make suggestions for things you're not claiming. Go on, name & fame.

[BrilloPad]

I did once get pulled up by an accountant for not claiming enough expenses. He soon corrected that.....

[Clippy]

Very well put

I have a PDF of a taxi receipt if you want to up your travel expenses

I'll post it on here when I get home

unless some other frendly contractor beats me to it

Would appreciate it if you could PM me a copy.

[Dandyman]

I don't claim because I have little to make a valid claim for except my monthly
accountant fees. Have been at the same site over 2 years now so no travel expenses permissable, and I'm fairly sure IR35 will be a problem, thinking of coming out of this soon anyway and going to PAYE for peace of mind.

[Gonzo]

Or rephrased if you do not claim the "right" type of expenses could that trigger an alarm? IE could the revenue think this is not a standard company if things like stationery and other similar business related costs are not claimed for because you're just sat in an office somewhere?

I currently try to keep my expenses extremely minimal thinking this would keep me under the radar.

So are you

• Keeping expenditure to a minimum? (this is a good thing)
• Not claiming from your company things that you have bought out of your own pocket? (this is a silly thing)

There should be no problems claiming anything so long as it was a legitimate and allowable business expense for operating your company.

I do remember seeing someone post on here that they had been told that the reason that they kept being investigated was because of their high expenses.

To put that in context they had claimed the rent for a flat near to one of their gigs. HMRC challenged this but their accountant was able to persuade them that it was allowable.

[SteveMcadden1]

Dandyman

I dont think you can manage your business like this and keep below the radar.

You dont know what the radar is looking for and how high it is aimed at.

Some things we do know, late filing, incorrect returns etc.. will all attract interest.

Profit levels, salary to div ratios are all things that HMRC are not going to say if they are using as radar or not.

I think that if you have legitimate expenses then claim them, if you dont then you have nothing to claim.

Not claiming anything may make an accountants work much easier, less figures to do.

I agree very much with being a real business and claiming a real business expense, and long term think that HMRC compliant trading like this would be preferable.

If you are worried about an investigation, but happy with what you are claiming , use tax investigation insurance so you can defend any HMRc interest. Its included with PCG membership and also with some accountants.

Phil

Very well put

I have a PDF of a taxi receipt if you want to up your travel expenses

I ll post it on here when I het home

unless some other frendly contractor beats me to it

[PhilAtBFCA]

Dandyman

I dont think you can manage your business like this and keep below the radar.

You dont know what the radar is looking for and how high it is aimed at.

Some things we do know, late filing, incorrect returns etc.. will all attract interest.

Profit levels, salary to div ratios are all things that HMRC are not going to say if they are using as radar or not.

I think that if you have legitimate expenses then claim them, if you dont then you have nothing to claim.

Not claiming anything may make an accountants work much easier, less figures to do.

I agree very much with being a real business and claiming a real business expense, and long term think that HMRC compliant trading like this would be preferable.

If you are worried about an investigation, but happy with what you are claiming , use tax investigation insurance so you can defend any HMRc interest. Its included with PCG membership and also with some accountants.

Phil

[DSW]

That's what I thought, less claimed = less potential likelihood of investigation in future, this is what my accountant is advising me though!

but think like a business, it would look very dodgy if a plumber took home pretty much all his revenue. If you are a proper business then you will have expenses. For most of us that is probably just PAYE, travel, insurance and perhaps some professional costs (subscriptions etc). If it all goes down to the bottom line it could look a fair bit like you are an employee.

[Dandyman]

That's what I thought, less claimed = less potential likelihood of investigation in future, this is what my accountant is advising me though!

[TroubleAtMill]

I think you're being overly paranoid. Wouldn't Hector actually be more happy that you're not claiming all your valid expenses because you'll be paying Corp Tax on it?

[HairyArsedBloke]

I currently try to keep my expenses extremely minimal thinking this would keep me under the radar.

Mug.

Go large with the expense claims. Collect receipts for everything in sight and nick a few from others. Your accountant will throw out the worst and argue with the T-man about the rest.

[MPwannadecentincome]

if you are that worried about it get someone to give you some till receipts from Rymans or WH Smiths

[Dandyman]

Or rephrased if you do not claim the "right" type of expenses could that trigger an alarm? IE could the revenue think this is not a standard company if things like stationery and other similar business related costs are not claimed for because you're just sat in an office somewhere?

I currently try to keep my expenses extremely minimal thinking this would keep me under the radar.