subsistence advice

[contractor_it]

Hi,

i have recently started contracting, and have been slightly misled by the umbrella company that i have joined that I can claim £X without reciepts.

From doing a bit of reading around on the internet I now understand that I need to keep the reciepts incase of a tax enquiry.

I have so far claimed around £100 and have not kept any of the reciepts.

My question is, what do I need to do to rectify the fact I have claimed £100. Will the inland revenue be happy if I don't claim for my next £100 of subsistence but keep the reciepts ? Basically, do I just need to accrue £100 worth of reciepts over this tax year to cover the £100 I have claiimed for ?Or do I need to declare to them what has happened now to avoid any issues in the future ?

[sathyaram_s]

Given the small amount, I would not bother much .. Try to get receipts to cover this £100 by Apr and you should be fine... The approach may have to be different if the sum involved was higher.

I am not an accountant though

Hi,

i have recently started contracting, and have been slightly misled by the umbrella company that i have joined that I can claim £X without reciepts.

From doing a bit of reading around on the internet I now understand that I need to keep the reciepts incase of a tax enquiry.

I have so far claimed around £100 and have not kept any of the reciepts.

My question is, what do I need to do to rectify the fact I have claimed £100. Will the inland revenue be happy if I don't claim for my next £100 of subsistence but keep the reciepts ? Basically, do I just need to accrue £100 worth of reciepts over this tax year to cover the £100 I have claiimed for ?Or do I need to declare to them what has happened now to avoid any issues in the future ?

[NotAllThere]

I'd make a record of the amount, purpose and date of the expenses. And from now on, keep the receipts. If HM comes knocking, you can explain that you hadn't understood the importance of keeping receipts in your first month, but you rectified the situation as soon as you did. Then it will be up to them to fine you and charge you interest on the, what, £25 you diddled them out of, you tax evading scum, you, or not.

[DBA_bloke]

"subsistence advice": soup kitchen?

[xoggoth]

Have had a couple of visits and inspector did not ask for receipts, they would rarely have time to go checking though loads of minor receipts. They are really looking for major things they can get you on, big stuff or whole categories of expenses incorrectly claimed. Keep things from now on and don't worry about it.

[contractor_it]

cheers for all your advice