Umbrella and receipts

[dx4100]

Hi All

Finally got contract sorted and umbrella sorted. Now just sorting out the finer points of making sure I do things properly and I have a question about expenses and receipts. For certain expenses my umbrella, Parasol, need to receipts (aka hotels over £45 a night). I asked them once they have seen them will they return them to me, and they said no they will keep them on file at the company.

hmmmm....should I be asking them to send them to so I can hold on to them ? Or can I trust them ?

Thanks

[Ardesco]

You will need to keep receipts for everything you claim. I would either offer to send them a photocopy of the receipts, or keep a photocopy of them.

Or you could just go LTD.

[dx4100]

With the IR claiming war on there dispensations I think they are now wanting the originals. I will see what I can sort out with them.

My long term aim is to go LTD but I am brand new to contracting and need to see how it works out for me. I think in 6 months time I will be LTD.

[LisaContractorUmbrella]

An umbrella company will need to see receipts for any expenses that are not covered by it's dispensation as the claim has to be filed on a P11d. I assume that is why Parasol are asking for some receipts and not others.

HTH

[sidknows]

what possible expenses could a contractor have which would not be covered by an umbrella dispensation ?

[oracleslave]

what possible expenses could a contractor have which would not be covered by an umbrella dispensation ?

Bubbly, hookers and charlie.

HTH.

[TheFaQQer]

what possible expenses could a contractor have which would not be covered by an umbrella dispensation ?

I depends on what the dispensation convers, doesn't it?

Subsistence over £25?
Accommodation over a certain amount?

Depends on what it actually covers - they may be similar, but not always identical. The one my company has covers all expenses, no limits. Most umbrellas seem to cover up to £25 for food, but they all have their own rules.

[NickFitz]

When working through a brolly you are a normal, PAYE employee of the brolly, and it is they who have to justify expenses to the taxman, therefore, they need the receipts.

You should of course keep copies, but they are the ones claiming tax relief on business expenditure incurred by an employee, so they need the paperwork.

[dx4100]

yea makes sense when you think of it like that.

Fair enough, I will just keep photocopies,

Cheers