Update from my MSC

**malvolio** · 15 December 2006, 23:56

Hmmm... The new rules are (in effect) that you cannot claim expenses that an employee would not be able to claim. So that takes out travel to your normal place of work hich is not "your office" and not the MSC's premises. You need independent advice, I believe.

**tim123** · 16 December 2006, 10:25

Originally posted by monkeygeorge

Following an review carried out by Deloittes, the following recommendations have been suggested for future expenses claims:

1) All mileage claims will need to be supported by petrol/ diesel receipts at the level of at least £10 for the each 100 miles claimed.

My diesel used to do 14 miles to the litre (sorry for the mixed units) so at 85p per liter that 6.80 per 100 miles. Even my 'new' petrol car gets 9-10, so that 9 pounds per 100 miles.

Obviously the people from Deloittes don't live in the 'real' world, I guess that they all drive around in rollers.

tim

**Churchill** · 16 December 2006, 11:14

Originally posted by tim123

My diesel used to do 14 miles to the litre (sorry for the mixed units) so at 85p per liter that 6.80 per 100 miles. Even my 'new' petrol car gets 9-10, so that 9 pounds per 100 miles.

Obviously the people from Deloittes don't live in the 'real' world, I guess that they all drive around in rollers.

tim

The "mileage" charge is to cover fuel, maintenance & depreciation of the vehicle, insurance, road tax etc.

**rawly** · 16 December 2006, 14:39

I got this email from Giant yesterday as well. I was furious. I already queried it and they gave me a mixed message saying HMRC agreed to the change. How this consulant company comes into it I don't know. Less than 2 weeks notice, being implemented 1st January.

For me it's a loss of over £7000 of tax free earnings. I make a daily journey of 32 miles return - so how I am expected to submit a VAT receipt everyday for
£10 just for business travel to a temporary workplace. Also my £15 subsidence allowance would require about 10 VAT receipts per day from a workplace that doesn't even have normal receipts - never mind VAT ones! I've worked out that I would now have to submit over 60 VAT receipts per week.

It's not practical - Ive told my agency I'm moving to someone else. They have a strong relationship with Giant - but this is just unworkable now.

**tim123** · 16 December 2006, 15:41

Originally posted by Churchill

The "mileage" charge is to cover fuel, maintenance & depreciation of the vehicle, insurance, road tax etc.

Yes,

But Delloits are (advising) asking for 10 GBP of petol receipts for each 100 miles driven.

tim

**tim123** · 16 December 2006, 15:47

Originally posted by rawly

I got this email from Giant yesterday as well. I was furious. I already queried it and they gave me a mixed message saying HMRC agreed to the change. How this consulant company comes into it I don't know. Less than 2 weeks notice, being implemented 1st January.

For me it's a loss of over £7000 of tax free earnings. I make a daily journey of 32 miles return - so how I am expected to submit a VAT receipt everyday for
£10 just for business travel to a temporary workplace. Also my £15 subsidence allowance would require about 10 VAT receipts per day from a workplace that doesn't even have normal receipts - never mind VAT ones! I've worked out that I would now have to submit over 60 VAT receipts per week.

It's not practical - Ive told my agency I'm moving to someone else. They have a strong relationship with Giant - but this is just unworkable now.

As indeed it should be.

Please explain to my why you think that travelling a measly 32 miles to work each day, should entitle you to a 15 GBP tax free allowance (in addition to the travelling cost)? Even if you spend it, there's no real justification for you getting it, and if you don't spend it you are most certainly not entitled to it.

ISTM that this is a tax evasion scam and (as a tax payer) I'm quite happy that HMG are closing it down.

tim

**Newby** · 17 December 2006, 14:09

Sounds to me like Giant have had an HMRC review on their expense policy. I always thought that £26 to spend on lunch per day was a little excessive. You have got to feel sorry for them really, HMRC giving it to them from behind regarding expenses, then when they have finished up steps Gordo to continue the

ing! magic

**colin johnston** · 17 December 2006, 21:54

Hmm,
I am worried about this email since it raises a few issues
1) it does not say the HMRC dispensation has gone, i assume hmrc has to send
a letter to this effect ??
2) my normal place of work is temporary.
3) the 10 pounds per 100 mile receipt thing has not been thought through as
the tax allowance is not based on petrol used. It does not cope with hybrid
cars.
4) the food receipts thing is balmy, maybe however it will be possible to
setup our own cash and carry ltd company.
5) how does giant expect to cope with so many receipts ?
6) I assume it is legel to rent and then sublet a room ?

Colin

**Cowboy Bob** · 17 December 2006, 22:59

Originally posted by colin johnston

Hmm,
I am worried about this email since it raises a few issues
1) it does not say the HMRC dispensation has gone, i assume hmrc has to send
a letter to this effect ??
2) my normal place of work is temporary.
3) the 10 pounds per 100 mile receipt thing has not been thought through as
the tax allowance is not based on petrol used. It does not cope with hybrid
cars.
4) the food receipts thing is balmy, maybe however it will be possible to
setup our own cash and carry ltd company.
5) how does giant expect to cope with so many receipts ?
6) I assume it is legel to rent and then sublet a room ?

Colin

You've been scammed. The dispensation is for Giant, not you. You have always need to keep receipts for everything you have claimed. The dispensation just means that Giant don't need to see them. You'd better have them if you ever get investigated...

Update from my MSC