"Relating to existing contract"

[Scotchpie]

I've been thinking of updating my library as a means to keep my knowledge and my skills up to date and to acquire new skills. However when I submitted the receipts to my umbrella I was told that I could not class them as a justifiable business expense unless they were necessary for my current contract.

To be honest they aren't relevant to my current gig but they are relevant to my personal development and will help me add more value to future clients (not to mention upping my fee). After all, I don't by these books for a little light bedtime reading!

Other contractors with other umbrellas I worked for have submitted receipts for anything from new suits to laptops.

Just wondering what your experiences have been?

[FiveTimes]

If it was a technical book I can't see how the brolly can reject it, on the other hand if you were buying a box set of harry potter then they might have a point.

[TheFaQQer]

At the end of the day, it's not whether the Umbrella accept it or not as an expense - it comes down to whether HMRC would think that it was a valid business expense.

If you are buying technical books, then I don't think that there would be a problem. Buying a suit is not going to be allowed, though - if a barrister cannot claim the cost of wigs and robes for court wear, I don't think you'll get away with buying suits as an expense that is wholly for the business.

[VectraMan]

Who owns the books?

If you have a Ltd., then the company can buy books if it likes (and can reimburse you if you pay for them), but they remain assets of the company. What you're talking about here is buying something for yourself, not your employer (the umbrella), which makes it a bit different.

[BolshieBastard]

Hahahaha! That's what you get when you use an 'umbrella.' Sh it advice and little control over what you can submit as a valid business expense.

But enjoy the inflated meals expenses without receipts!

[Beefy198]

Other contractors with other umbrellas I worked for have submitted receipts for anything from new suits to laptops.

As VectraMan said, you shouldn't be able to get a suit through anyway. Nor a laptop, as you wouldn't use it wholly and exclusively for that contract.

They might be simply treading carefully in case HMRC take a dim view of it, and who can blame them? Some of the rules are so vague no one quite knows what they are. And you need to remember that on the other hand a lot of people moan about how 'lax' brollies can allegedly be towards expenses.

My final thought is, just how much benefit would have you seen putting these through as an expense anyway?

[tim123]

At the end of the day, it's not whether the Umbrella accept it or not as an expense - it comes down to whether HMRC would think that it was a valid business expense.

If you are buying technical books, then I don't think that there would be a problem. Buying a suit is not going to be allowed, though - if a barrister cannot claim the cost of wigs and robes for court wear, I don't think you'll get away with buying suits as an expense that is wholly for the business.

That arguement has already been tried in court and lost. It is never ever wholly for business, it is also serves the purpose of keeping you warm and modest.

tim

[tim123]

Hahahaha! That's what you get when you use an 'umbrella.' Sh it advice and little control over what you can submit as a valid business expense.

But as VectraMan has pointed out, he isn't running business, therefore he has no entitlment to claim business expenses.

He is a PAYE employee entitled to deductions for out of pocket "employment"
expenses on he same basis as any other PAYE employee. I.e he makes a claim for them directly from the revenue on his Tax return.

tim

[Doggy Styles]

If it was a technical book I can't see how the brolly can reject it, on the other hand if you were buying a box set of harry potter then they might have a point.

Unless he's a magician of course.