Reply to: Expenses / Receipts issue

[LisaContractorUmbrella]

<pedant>
Why would an umbrella provide information about IR35?
</pedant>

Because it's a term that new contractors have heard bandied about but don't really understand. We have always been about providing as much contractor information as possible whether it's relevent to umbrella companies or not - we're nice like that

[The Wikir Man]

The contractor should always have an account manager who will be there to answer questions and pass on relevent information e.g. a change in tax code, new legislation etc. The umbrella should also send new contractors a copy of their terms and conditions, details of how their systems work, pay dates etc. They should also have information available on expenses, IR35, tax legislation etc.

<pedant>
Why would an umbrella provide information about IR35?
</pedant>

[LisaContractorUmbrella]

When signing up with a brolly are individuals advised what to or not to do?

Is it like a joining pack or do they get an account manager who hammers home best practice on how to work.

Am Ltd so not familiar with brolly processes and curious.

The contractor should always have an account manager who will be there to answer questions and pass on relevent information e.g. a change in tax code, new legislation etc. The umbrella should also send new contractors a copy of their terms and conditions, details of how their systems work, pay dates etc. They should also have information available on expenses, IR35, tax legislation etc.

[northernladuk]

When signing up with a brolly are individuals advised what to or not to do?

Is it like a joining pack or do they get an account manager who hammers home best practice on how to work.

Am Ltd so not familiar with brolly processes and curious.

I am aware of two and there are quite comrehensive guides on what you can and can't claim and process. Both of the ones I dealth with sent this out in paper as part of a pack but also had a guides section where this was downloadable with other interesting articles on what I can/can't claim, the process and how it works etc.

Quick answer is yes. There are 'induction' materials offered by the bigger ones.

[Clippy]

When signing up with a brolly are individuals advised what to or not to do?

Is it like a joining pack or do they get an account manager who hammers home best practice on how to work.

Am Ltd so not familiar with brolly processes and curious.

[northernladuk]

and I would advise you go back and re read ALL the information offered by your brolly to make sure there are no other major issues heading your way you are not yet aware of! Keeping reciepts is normally mentioned all over the place where other little important bits are hidden away.

[Tarquin Farquhar]

Umbrellas, MSCs, BN66, IR35, S660, disguised employees, dodgy expenses etc.

Blah, I wonder sometimes, how exactly DO the Inland Revenue want us to do business???

They don't want us to do business. Seriously. They want us to be employed by a large company and safely on PAYE.

Remember, their job is to tax. If you make lots of money but work in a way that they mistrust, they fear loss of control and loss of tax, i.e. failure on their part.

If you were employed by a large consultancy, who raked off 60-80% of their inflated billing, paid you a shedload less, but did it on PAYE, then the Revenue would be happy. That's a positive result for them, everybody inside the right tax system, everything hunky-dory (except for you).

In fact if the work goes to India and you sign on, the Revenue would be happy. That too is not their concern, as long as tha tax is done the way they like it.

[The Wikir Man]

Umbrellas, MSCs, BN66, IR35, S660, disguised employees, dodgy expenses etc.

Blah, I wonder sometimes, how exactly DO the Inland Revenue want us to do business???

Legally?

Whilst I agree with some of those in your list, I don't think that dodgy expenses should be part of any business, whether small or large.

[questiontime]

Umbrellas, MSCs, BN66, IR35, S660, disguised employees, dodgy expenses etc.

Blah, I wonder sometimes, how exactly DO the Inland Revenue want us to do business???

become an employee and join the union.

[LisaContractorUmbrella]

Any umbrella company should makes random checks to ensure that no contractor working through them is claiming anything they shouldn't be. HMR&C considers that contractors working through an umbrella company are their employees and as such it is the umbrell company's responsibility to ensure that all expense claims are legitimate. If you are unable to back up your expenses with receipts or proof of expenditure then your umbrella company should disallow the expense.

[malvolio]

If you can prove the expenditure, that should be sufficient. For example, credit card statements will show you bought petrol or train tickets or accomodation, mileage records will prove you did some business-realted travelling...

Of course, if you didn't actually spend the money but claimed anyway, then you might have a slight issue. Hint: that's not called "avoidance"...

[NotAllThere]

Of course, you could always "find" receipts for those missing. *cough*

[Wanderer]

From what I have read, HMRC will be targetting umbrella companies more

Umbrellas, MSCs, BN66, IR35, S660, disguised employees, dodgy expenses etc.

Blah, I wonder sometimes, how exactly DO the Inland Revenue want us to do business???

[Wanderer]

didn’t realise that I had to keep theses receipts and as such don’t have them all. Can anybody advise what I should do and what the consequences are.

Remember that this is the umbrella company you are dealing with, not HMRC. I'd be inclined to just tell them the truth and see what happens. They'll probably just disallow the expenses you can't produce receipts for. I can't really see any other way around it.

If they get snotty with you then write up a justification of how you spent the money (presuming your expenses were reasonable)

What's the name of the brolly company?

Good luck and let us know how you get on!

[xoggoth]

Presumably a reasonable expenditure on petrol and subsistence can be impled by your work pattern and the distances travelled. Even without receipts I can't see how even the IR can say your valid expenses are zero.