6 things that may happen if you falsely claim expenses

[UKFF Mod]

The row over MP expenses has taken another twist and many MPs are now being told they should pay back claims approved since 2004. Bob Jones, former HMRC inspector of taxes, throws us his two pence worth.

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If you have any comments to make about this article feel free to start the debate below!

[WhiteBear101]

Interesting read. I thought I'd ask though, the guy in the picture isn't the ex-HMRC inspector is it? Although perhaps a little angry, he doesn't look too bad given a 39 year stint working for Hector

[Howzat]

not sure about the losing your wife line. My missus would probably applaud me if I saved the odd tenner in income tax

[alexa]

Hi,

HMRC are becoming more stringent on this - One of the main things to look at is whether your workplace is deemed temporary in the first place. If not you should'nt be claiming travel and subsistence expenses!

Read more on (COMMERCIAL LINKS REMOVED TO DANBRO UMBRELLA) 'Is your workplace deemed temporary"

hope this helps!

Alex

[The SMG]

Right then Alexa, let me paint a hypothetical scenario for you...

Rather than continually posting links back to your website, why don't you actually engage in a debate here:

A contractor joins Danbro umbrella. They sign your over-arching employment contract and start their first assignment - a 3 month gig in the city somewhere.

After 10 weeks of processing their lofty expense claims (I'm talking £250-£300 a week) you discover that the contractor does in fact have absolutely no intention whatsoever to continue working through Danbro Umbrella after the end of their first assignment. In fact, it transpires that they NEVER had the intention of working more than one gig via Danbro Umbrella.

So what do you do.

1. Politely inform the contractor that they can no longer offset expenses for the remainder of their assignment?

2. As above, but insist that you claw back the expenses offset against tax for the previous 10 weeks? So retrospectively work out the PAYE taxes saved and then charge these back over the next couple of weeks.

3. Do nothing?

Please answer honestly.

G

[alexa]

Hi SMG,

thank you for your reply.

Firstly - The question of whether a contractor anticipates working on more than one assignment is one that is asked in the initial stages of a contractor enquiring into our Umbrella service.

Secondly - if it did come to our attention that they only anticipate working on one 'gig', their right to claim t&S expenses would cease.

If you want to read more into it, feel free to follow the link I posted.

Regards,

Alex

[The SMG]

Originally Posted by alexa

Hi SMG,

thank you for your reply.

Firstly - The question of whether a contractor anticipates working on more than one assignment is one that is asked in the initial stages of a contractor enquiring into our Umbrella service.

Secondly - if it did come to our attention that they only anticipate working on one 'gig', their right to claim t&S expenses would cease.

If you want to read more into it, feel free to follow the link I posted.

Regards,

Alex

Right, so any chance you could answer the question....

1, 2 or 3?

G

[TheFear]

Originally Posted by The SMG

Right, so any chance you could answer the question....

1, 2 or 3?

G

Carefully there SMG. This poster is an expert and creating links back to their own website. You can't possibly ask him to answer a question like this.

It's probably one of Danbro's marketing bods who wouldn't have a clue about tax, expenses, or anything other than "Hey everyone, I thought this link would be of help".......It's a shame though. Joking aside, I would be interested in their take on this issue.

[alexa]

Originally Posted by The SMG

Right, so any chance you could answer the question....

1, 2 or 3?

G

answer 1. (quote from my initial post - "if it did come to our attention that they only anticipate working on one 'gig', their right to claim t&S expenses would cease".)

TheFear - I’m the author of the article (now removed), I’m happy to send it to you and perhaps your premature opinion may change – it will also give you an insight into ‘our take’ on the issue.

Regards,
Alex

[The SMG]

steady on there Alex, you can't just bulldoze your way onto the forum and expect us all to click on your links for nothing. So back to my original question, would Danbro not retrospectively correct the individual's PAYE tax position if it was found that they NEVER had the intention of undertaking more than one assignment?