Reply to: Contractors Getting Investigated By HMRC?

[minsky1]

3K and a little flag saying that you're possibly dishonest and worth keeping an eye on.

Yep, thats right. I would never dream of claiming hotels and meals on that trip to Alton Towers we had earlier in the month on the company after that

Didnt I read somewhere (albeit a long while ago) that they were looking at paying commission to staff on income generated by compliance reviews?

[Churchill]

I dont see what being client's disguised employee - sorry, an umbrella co's employee has anything to do with it.

As an employee, I would guess your expenses should be declared on your Self Assessment. Anyone who has to submit an SA100 is fair game for a random compliance review.

Never been under an umbrella co, but my ltd has had reviews a few times in the last 15 years. They will inevitably find some detail to pull you up on.

Maximum amount they have stung us for so far is about 3k. Turnover is about 400k with a 30k plus PAYE bill, so 3k is peanuts really.

3K and a little flag saying that you're possibly dishonest and worth keeping an eye on.

[LisaContractorUmbrella]

I dont see what being client's disguised employee - sorry, an umbrella co's employee has anything to do with it.

As an employee, I would guess your expenses should be declared on your Self Assessment. Anyone who has to submit an SA100 is fair game for a random compliance review.

Never been under an umbrella co, but my ltd has had reviews a few times in the last 15 years. They will inevitably find some detail to pull you up on.

Maximum amount they have stung us for so far is about 3k. Turnover is about 400k with a 30k plus PAYE bill, so 3k is peanuts really.

As an employee of an umbrella company your expenses will be processed each time you are paid; declaring them again on your SA would cause you problems with HMR&C as you would be claiming the tax relief twice. Normally expense claims are recorded for HMR&C, by employers, on a P11d; umbrella companies apply for dispensations so that this is not necessary. However, dispensations are only granted if you can prove that you have procedures in place to verify all the expenses that you process; HMR&C can also remove the dispensation if they have reason to believe that expenses are not being dealt with correctly or the umbrella company is not compliant.

[minsky1]

I dont see what being client's disguised employee - sorry, an umbrella co's employee has anything to do with it.

As an employee, I would guess your expenses should be declared on your Self Assessment. Anyone who has to submit an SA100 is fair game for a random compliance review.

Never been under an umbrella co, but my ltd has had reviews a few times in the last 15 years. They will inevitably find some detail to pull you up on.

Maximum amount they have stung us for so far is about 3k. Turnover is about 400k with a 30k plus PAYE bill, so 3k is peanuts really.

[LisaContractorUmbrella]

Enough of the conspiracy theories already!

Im just asking if any other contractors using an umbrella company have any experience of bing investigated over their expenses.

If you use a decent umbrella company they should be investigating your expenses and advising you what can and cannot be claimed; if you have to wait for Hector to come after you, your brolly didn't do their job properly.

[doodab]

A lot depends upon your incomings, out goings, and whether you have anything odd or strange about your profile

Like a really long nose.

[Churchill]

Why not.

None of your business, for one.

[EternalOptimist]

What chance is there of getting a pull if you work with an umbrella company?

A lot depends upon your incomings, out goings, and whether you have anything odd or strange about your profile

[dspsyssts]

Why not.

[Churchill]

Enough of the conspiracy theories already!

Im just asking if any other contractors using an umbrella company have any experience of bing investigated over their expenses.

Why?

[dspsyssts]

Enough of the conspiracy theories already!

Im just asking if any other contractors using an umbrella company have any experience of bing investigated over their expenses.

[AtW]

Im interested in other contractors experiences.

Those of them who had new girlfriend named Bubba are no long as talkative as they used to be.

HTH

[b0redom]

TBH, it sounds like the question you're really asking is:

I want to claim for expenses I've not really incurred. What are the chances I'll get away with it?

Personally for the extra couple of quid you're probably claiming, I wouldn't do it. I like to sleep at night. If you want more money legally, set up a Ltd.

[dspsyssts]

Im interested in other contractors experiences.

[Churchill]

It was along the lines of what chance you being investigated to validate the authenticity of your expenses.

Wonder how many people have had to experince this or is it so rare it hardly ever happens?

Why not ask the umbrella company directly?