Quote:
Originally Posted by Light_Box
Hi all. I thought I'd ask another question as you've been so very helpful over the last week. We have two umbrella companies on our preferred suppliers list that tell our contractors that they don't need to keep receipts. The other three tell them that they do need to keep receipts. Can you please let me know what the actual position is regarding receipts as I'd like to ensure are contractors are given a consistent message.
Many thanks again
LB
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If the umbrella want to work without receipts, that's their problem. However there needs to be an audit trail back to the original expenditure. Therefore, all contractors should keep all receipts for up to 6 years, just in case HMRC decide to mount an audit either on the umbrella or onthe contrator's P11D
And I would suggest if your umbrellas are suggesting otherwise (a) they are clearly wrong and are probably working the usual flanker on expenses as income and (b) you should drop them now and stick with the ones that tell the truth.
HTH