Unreceipted Expenses

Unreceipted Expenses

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We have a client who works the length and breadth of the UK as a sub contractor under CIS, he wishes to claim £360 per month for subsistence costs, this is entirely unreceipted, it is clear that our client is incurring some subsistence costs in as much as he still alive but the question is how much is acceptable without any receipt, I seem to recall having seen something from the HMRC regarding this but can't remember where I saw it. Does anyone have any thoughts.

Thanks

Replies (5)

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By ShirleyM
13th May 2014 13:59

He's having a larf!

No receipts at all?  Nothing on his bank or card statements? All cash I guess.

I wouldn't put any claim through, but then ... I'm a cynic as I've heard it all before, and the fires/floods/burglars who destroyed the receipts they so carefully stored.

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Jennifer Adams
By Jennifer Adams
13th May 2014 14:30

Similar scenario...

A client came to me a couple of years ago.

Aged 28

No passport, no Driving licence, never had a bank account.

Gets paid in cash using those brown pay packets. BUT did have a UTR !! Not received any reminder letters from HMRC as had moved twice since the last one was submitted.

Owes 2 years tax returns, Previous to me his ex's father did his accounts so I cant go back and see what he did. They had a major falling out apparently and ex threw him out.

He cant remember his dates of working but does know that he pays a friend £20 in cash a week to drive him to work.

Has new girlfriend now who wants, in time, to get a mortgage so nagged him to coming to see me and came as well to make sure he actually did.

You can produce accounts if you use your detective skills. Ask where he has worked over the past year. Get him to get a list from his contractor of CIS payment made and where he worked. Work out at 40p per mile.

Add an estimate for 'sundries 'e.g £50. Plus your fee. Will probably come to more than £350

Say you wont do this again and get the refund to come into your clients bank account.

Get him to sign letter of engagement.

So long as you can prove you have actually tried to work out something.

In my case I did a major 'moan' to his girlfriend - I'm doing you a favour etc etc. This year I was rewarded with bank accounts, clear CIS payment invoices and receipts. In a shoebox but at least it was all there!

 

 

 

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By Marion Hayes
13th May 2014 14:34

Ask him where he is sleeping!!

If he really is always moving to different jobs and sleeping in his van I would be tempted to use the rates agreed for lorry drivers in similar situations - there are rates where they are using their sleeper cab instead of regular B&B's - with a large white space note explaining

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By CW2012
14th May 2014 15:28

Unreceipted expenses


Our client has given us accommodation costs separately from subsistence, these are fluctuating costs and we are told that they were the costs he incurred, apparently he stayed in a number of "guest houses", cash paid no receipt. It is the principal of the round amounts that are the most perturbing to us, £360 per month, I'm sure I've come across a Revenue article regarding unreceipted expenditure for almost itinerant workers.

 

Does anyone have knowledge of this.

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By s6owlsdec
14th May 2014 18:18

unreceipted expenses

having worked away from home for almost all my adult life , i can honestly say that £360 per month seems low to me! on average , my digs/subsistence costs are around £36 per night! 

most b&b will give valid receipts , but a hell of a lot of em want cash up front and seem reluctant to give any more than a quick duplicate book hand written receipt. money in back pocket no doubt.

fact is , hotels/digs aren't ten quid a night anymore,, so £360 sounds a reasonable estimate to me.

Thanks (1)