expenses gone mad

[Damo1176]

I thought claiming subsistence without receipts was nuts before especially to the tune that I know some people do but today I find someone else who put in an expense claim for a home printer and it was accepted by Giant.

Firstly it would seem that this is not an individual case, infact many people will do it based on risk assessment and believing there is little or no chance of being caught.

Why would the IR investigate expenses. in what way does an umbrella actually put it forward. For example with dispensations they don't have to catalogue each individual claim but how for example would one person get singled out unless they had thousands of pounds worth of expenses.

I keep sitting pretty thinking I'm not doing it so no risk for me but as I've said before slightly disheartening when a colleague sat next to you is blatantly getting away with it.

It's part jealousy but really would like to know how the IR gets made aware of it or thinks "oooh that looks a bit dodgy?"

[angusglover]

Yep, was chatting to a guy in the hotel last night that said he had never paid tax in 8 years...reckons he is gonna put a house through as company expense and risk it for 3 years then fook off...

I reckon a lot of it was bull but it makes it tuff for us law abiders....

[LisaContractorUmbrella]

Hi Damo

Even if an umbrella company has a dispensation they will need to keep records of the expenses that are being claimed and, in the event of an IR investigation, individual records for individual contractors would be checked.

HTH

[kirk]

Am I missing something here, what's wrong with claiming for a printer?

[Damo1176]

Hi Damo

Even if an umbrella company has a dispensation they will need to keep records of the expenses that are being claimed and, in the event of an IR investigation, individual records for individual contractors would be checked.

HTH

I understand that but for example a guy lives 20 miles from work and claims normal mileage but then claims that even with a 7.5 hour day that he is out of the house for over 10 hours and claims by default the entire £26 expense (dispensation) why would the IR pull his one out compared to any others. Would they be as thorough to check the actual hours he has claimed for a day, cross ref to mileage to home and then think ooh out of house for 10 hours plus is a a bit dodgy , lets check he's got receipts? Highly unlikely IMHO.

Do you see my point, when does £125 unreceipted subsistence look any worse than a man who validly claims that for mielage as he lives so far from home. Some umbrellas will simply cover themselves and get you to sign to say you have kept the original receipts, others say they will run a compliance check every once in a while and all the people have to provide receipts for a week, now £125 worth of receipts one week out of 6 months is nothing to someone who is claiming tax relief on that amount everyday.

Then the printer, how would an IR man know that a person does not need a printer for their line of work, the person might have the receipt but without knowing exactly what work someone does how can you prove they don't use it for their position?

I know there are loopholes for everything but whilst I get flogged for being honest amongst many others there are some blatantly taking the p*** and not caring!

[Damo1176]

Am I missing something here, what's wrong with claiming for a printer?

My point is this person works on a helpdesk with all kit provided, surely that is not an expense directly related to the work they do? Or am I missing a genuine loophole that states if you are a contractor and at any time need to print a timesheet you can claim for a printer?

[DS23]

claiming for a printer that does not exist, or may exist but was not paid for by the company that claims that it did is wrong.

[Damo1176]

claiming for a printer that does not exist, or may exist but was not paid for by the company that claims that it did is wrong.

The contractor operating through the umbrella bought the printer and gt a recipt, my point is they did not use the printer for business use as all kit is provided by the job. WhatI am saying is if you need to use the printer to print of expense claims etc and fill in timesheets then can you justifiably claim the expense of buying the printer and paper as a business expense?

[Bluebird]

Basically what you are doing is off-setting your income against expenses.

The more expenses you claim the less tax you pay.

If you claim for expenses that have not been incurred by you and then reimbursed by the brolly you are breaking the law - pure and simple no if's no buts.

If you want to cliam for a printer - say £100, that means that you get make I would guess about £20.

At the end of the financial year, you as an employee have to sign a P11D and probably do a self-assessment return - you need to declare expenses that have had some "benefit in kind" to yourslef - ie you got some use out of the expenses which is not wholly business related. If you fill in these forms / make false declarations you are breaking the law - again no if's, no buts - you can't even claim you didn't know - that won't wash with the IR.

If you want to take the risk fine, but be prepared for the consequences.

Up until April, the IR looked at MSCs in detail, now they have gone - they will no doubt now focus their attention on Ltds and Brollies.

[Maxamus]

if you use your car for travelling to and from work and it fooks up and needs to go to the dealers, would the cost of a courtesy car be an xpense?