Slapped wrist or asking for trouble

[Damo1176]

Ok

I have now read every bit on dispensations, stickys, comments on other sites and now read the small print on Orange genie who I am through who state that you sign a waiver confirming you have kept receipts for expenses for all subsistence claimed.

Now my issue here is...

1. Most poeple I work with that are contractors all claim the max subsistence they can for the time they are away from home, this differs from Giant to Orange etc. They either say they are not aware of having to keep receipts or are simply willing to risk it.
2. I on the other hand have not claimed for months as the few receipts I have kept are not worth posting.

If I were to claim like everyone else, firstrly what are the chances of being investigated for a mere £5 a day subsistence claim? Secondly if I were to be surely I'd just have to pay it back.

The way I see if 80% of contractors claim it regardless and most don't get caught. Now to me as a low tax rate payer I am missing out on about £40 a month minimum by being a goody two shoes!

Now I like being good but I hate losing money!

[chicane]

If the tax man catches you fabricating expenses, you'll know the real meaning of pain. Is that really worth £40/month?

[Damo1176]

If the tax man catches you fabricating expenses, you'll know the real meaning of pain. Is that really worth £40/month?

What do they do, drag everything up?! Some believe that if they get caught the'll just end up paying back what they owe, just simply saying they have not got the receipts and thats that.

The bit that annoys me is just like so many things many people will continue to fabricate expenses and get away with it.

A girl i know buys ink cartridges and claims them against her expenses too for use at home and nothing to do with her job. I know another guy that is runing a limited company outside IR35 when is pretty much blatantly inside and claims shed loads too. If I had any faith in the system I'd steer clear and watch them perish but as usual they won't!

[chicane]

If the penalty was as trivial as simply paying back the money you've fraudulently gained, there would be no incentive for people to do things by the book. From what I understand, anybody undergoing a tax investigation can expect to have the last 6 years of their work/life examined in excruciating detail, plus legal expenses, plus the money owed, plus interest, plus whatever else Gordo decides at the time.

At the end of the day, it's a simple matter of risk assessment. If somebody gave you £100,000, would you stick it in a high-interest savings account, or invest it in stock for Silicon Valley startups?

Apply the same logic to your expenses claims.

[Damo1176]

I know you're right and sense says claim what you legally can and leave it at that.....just annoys me so many will avoid sense and make lots out of it. I mean will the Ir really investigate one person in a brolly company for claiming £5 a day subsistence or try and kill MSC's??

[Euro-commuter]

I know you're right and sense says claim what you legally can and leave it at that.....just annoys me so many will avoid sense and make lots out of it. I mean will the Ir really investigate one person in a brolly company for claiming £5 a day subsistence or try and kill MSC's??

Is your question about what you can claim, or about your wish to see other people punished for what they do?

[pisces]

Not worth it for around 1% of your income is it really?

[damo111176]

Is your question about what you can claim, or about your wish to see other people punished for what they do?

What I can claim and get away with really. The fact that some people get away with murder is just me venting frustration!

[damo111176]

Not worth it for around 1% of your income is it really?

About 5% but yeah. More annoyed that asa legit as I might be many colleagues arounbd me will continue to claim these expenses and no doubtget away with scott free.

[LisaContractorUmbrella]

If your work means that you have to stay away from home overnight you can claim £5 per night and you do not have to produce receipts. You cannot claim subsistence if you are not away from home overnight.

HTH