View Full Version : ParasolIT and the Inland Revenue

20th September 2004, 20:06
Why do ParasolIT no longer have Inland Revenue dispensations?

I stay in a b&b during the week and submitted a hand written receipt from my landlady for their accounts to reimburse. Parasol declined payment, telling me that they thought the receipt was bogus. I rang the Revenue help desk who told me that a receipt can be handwritten on standard paper as long as it's truthful.

I complained to Parasol and was told 'sorry, but we had our dispensations taken away by the Revenue and so we're now being monitored very closely'. I asked why the Revenue had done this and the guy refused to tell me, saying he shouldn't really have said what he'd told me.

Are ParasolIT in trouble with the Revenue?:smokin

20th September 2004, 20:59
I took the liberty of reading your two previous posts, easyentry, which can easily viewed by looking at your profile - interesting to say the least !!

Parasol don't use dispensations unlike many of their competition who play the dispensation game to hoodwink newbies and justify their high rates. Parasol have the fairest, clearest and most honest expense strategies of all the umbrella companies I have looked at, which is one of the main reasons we recommend them. By me I mean myself and Fiddleabout - you know the chap - he's the one who you seem to have aimed your rather unwarranted and obscure comments at in your two previous posts.

I have forwarded your comments to our contact at ParasolIT and would advise you to take your bitterness and slander to another forum before it lands you in serious trouble.

21st September 2004, 09:20
I've mailed parasol requesting comment. As one of their contractors I have a vested interest in this and if I and other have been worried unnecessarily by this I'm sure they will have something to say about it.

21st September 2004, 09:33
Now what other ids were around on this board about 8:00pm last night I wonder...

21st September 2004, 10:15
Parasol IT does have a dispensation - I just don't think they use it as a sales tool like most others. Been with them for 4 years now and all is fine. They validate expenses very stringently which can be a pain, but I guess they sleep in their beds at night!


21st September 2004, 10:31
> but I guess they sleep in their beds at night!

far more importantly so can you :)

21st September 2004, 11:07
Hello Easy,

Just as clarification for you - a dispensation does not let an umbrella company allow expenses that others cannot. Only the Inland Revenue can determine what can or cannot be claimed. A dispensation just means that the umbrella company is not obliged to report the expenses claimed on a P11D at the end of the financial year. As someone here mentioned some umbrella companies 'trade' on the dispensations as if they were a get out of jail free card or something - they're not I am afraid. If Parasol have lost theirs it just means that they will be required to fill in a form that they do not fill in now, therefore you should not be affected.

21st September 2004, 11:22
The rules for expenses claimed by contractors are straightforward, whether it be through a limited company or an umbrella company.

Expenses always need to be justified and major ones like accommodation will need to be backed up with receipts. The dispensations that apply to umbrella companies have no effect whatsoever on the contractor.

If the Inland Revenue decide to inspect your expenses they will deal with you and you will be expected to justify all expenses claimed. These inspections do happen - I had one in 2000.

Any contractor is entitled to claim expenses, although there are limitations with an umbrella company operation or a limited company working under IR35. No umbrella can possibly allow an individual contractor to legitimately claim more expenses than they have incurred. A well informed contractor will claim his/her allowable expenses with no problems however they decide to operate.

21st September 2004, 11:39
I have used Parasol in the past and have also been involved in research in the whole accounting services industry for a client. About 3 years ago Parasol had a dispensation and this was queried and removed by the IR. This went on for a year or so before the dispensation was re-instated. In effect this probably means the IR wasn't happy with something and Parasol have changed their working practices to ensure that expense claims are validated correctly. The binning back of a hand written B&B receipt would seem to suggest they are doing a thorough job.

21st September 2004, 11:57
I have received a reply to my email and Rob has given me permission to post it here:

Hello James,

I can categorically deny that this is true. It is simply malicious gossip
at best or worse a competitor seeking to unsettle Parasol IT employees.

We do have a dispensation granted by the Inland Revenue but we do not
shout from the roof tops about this as it is our opinion that it is
unprofessional to overtly use this as a sales technique. How a
dispenasation is used and what it means is also often misrepresented, far
too many people use it as a technique to attract people and forget to be
clear about receipts and personal tax. A dispensation is granted by the
Revenue to enable an organisation to streamline expnese processes and
reduce year end paperwork. It does not provide carte blanche to ignore
various expense guidelines as defined by the Revenue.

We make no excuse for being a very safe and "straight" organisation and
believe that in the long term that serves the employee and our business
best interests.

I hope this addresses your concerns.

Best wishes,
Rob Crossland