Receipts

[CrazyMoose]

Hi all,

My umbrella company have told me they have a dispensation so when I claim expenses I just tell them how much I have spent. As I don't need to send receipts I never keep them or ask for them, I just make a note of what I have spent.

There is another contractor on at my client who has his own ltd. When we were talking about this he said you always need to keep receipts, I said I didn't have to because of this dispensation but he was sure. Does keeping receipts only apply to people with their own companies? Surely this is a benefit of working through an umbrella - less paperwork

[Months_man]

I'm not going to claim I am an expert on dispensation, but I as a contractor, I have always been under the impression that the HMRC can choose to investigate you at anytime. Keeping copies of your reciepts will mean that you can be 100% certain that any investigation will run smoothly and you wont be liable to pay extra tax. Just get into the habbit of collecting your reciepts, then just file them every month or so.

[CrazyMoose]

So how does the dispensation help me?

[Months_man]

i think it basically means you don't have to bother sending the original reciepts to your umbrella company. Hopefully the moderator or someone with more knowledge than me will jump in at somepoint and correct me if I am wrong!

[The SMG]

Originally Posted by CrazyMoose

So how does the dispensation help me?

It shouldn't help YOU at all. It helps your Umbrella Company by minimising the amount of paperwork (P11d, P11d(b)) required at payroll year end. Keep all receipts regardless of what your Umbrella tells you.

Are we friends now?

SMG

[JeffreyC]

I work for an umbrella company and can only echo what the above poster has said.

A dispensation just means less paperwork for us, you should still keep your receipts to prove that you have spent the money in the first place! Otherwise people would just claim what they liked and pay less tax!

[The SMG]

Originally Posted by JeffreyC

I work for an umbrella company and can only echo what the above poster has said.

A dispensation just means less paperwork for us, you should still keep your receipts to prove that you have spent the money in the first place! Otherwise people would just claim what they liked and pay less tax!

well said. Are you allowed to tell us which Umbrella you work for?

SMG

[JeffreyC]

I'm afraid not - I'm not the boss of the company and he doesn't know I'm posting on here yet!

[The SMG]

Originally Posted by JeffreyC

I'm afraid not - I'm not the boss of the company and he doesn't know I'm posting on here yet!

get back to work then and start adding some value

SMG

[CrazyMoose]

I'm so annoyed! I've just got off of the phone to my umbrella company who have told me that they ALWAYS tell people that they need to keep receipts themselves. It's the first time they've told me!

Just be warned everyone in case you're in the same boat as me.