Expenses / Receipts issue

[bit stuck]

I’ve been randomly selected by my umbrella company to check on my expenses receipts.
I’m not required to send receipts for some claims (such as petrol and subsistence) as they have a dispensation from HRMC.
I didn’t realise that I had to keep theses receipts and as such don’t have them all.
Can anybody advise what I should do and what the consequences are.

This is much appreciated

[NotAllThere]

First of all, your umbrella company "investigating" you isn't an issue. However, if HMRC choose to investigate you and you can't give receipts showing your expenditure, then you may find your expenses are disallowed. Meaning you have to pay the tax you got deducted back, + interest. Penalties are a possiblity, but I think unlikely - unless you've been taking the mickey.

What expenses did you claim?
Do you have anything that backs up your claim.
Did you claim any expenses that you didn't actually incur?

[escapeUK]

First of all, your umbrella company "investigating" you isn't an issue. However, if HMRC choose to investigate you and you can't give receipts showing your expenditure, then you may find your expenses are disallowed.

Given that you are paying two lots of NI and income tax Im sure they can find better targets than you.

[NotAllThere]

Well yes, there is that a well. Good point, well presented.

[RichardCranium]

Given that you are paying two lots of NI and income tax I'm sure they can't find easier targets than you.

FTFY

[The Wikir Man]

Given that you are paying two lots of NI and income tax Im sure they can find better targets than you.

That implies that there is some kind of reasoning behind HMRC decisions.

From what I have read, HMRC will be targetting umbrella companies more - I think there was something in the PBR last year mentioning it. I would not be surprised if employees taking the mick with expenses is something that they will look at more and more.

Reminder, folks - just because the umbrella doesn't ask for receipts, doesn't mean that the PTB won't ask for them either.

[RichardCranium]

... I think there was something in the PBR last year mentioning it...

... doesn't mean that the PTB won't ask for them either.

WTF?

PBR? "Pre-Budget Report"?

PTB? "Powers That Be"?

FFS.

[xoggoth]

Presumably a reasonable expenditure on petrol and subsistence can be impled by your work pattern and the distances travelled. Even without receipts I can't see how even the IR can say your valid expenses are zero.

[Wanderer]

didn’t realise that I had to keep theses receipts and as such don’t have them all. Can anybody advise what I should do and what the consequences are.

Remember that this is the umbrella company you are dealing with, not HMRC. I'd be inclined to just tell them the truth and see what happens. They'll probably just disallow the expenses you can't produce receipts for. I can't really see any other way around it.

If they get snotty with you then write up a justification of how you spent the money (presuming your expenses were reasonable)

What's the name of the brolly company?

Good luck and let us know how you get on!

[Wanderer]

From what I have read, HMRC will be targetting umbrella companies more

Umbrellas, MSCs, BN66, IR35, S660, disguised employees, dodgy expenses etc.

Blah, I wonder sometimes, how exactly DO the Inland Revenue want us to do business???