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ContractorUmbrella has listed 13 'Myths and Facts’ on its website. It claims that gaining reliable and easy to understand information about what contractors can and cannot expense, isn’t as easy as it may appear and that even HMRC struggle to condense such information, with their ‘2007 Expenses and Benefits - A tax guide’ is 100 pages long.
ContractorUmbrella says that the three most commons myths in a survey of contractors were:
- 1. Myth: A daily subsistence allowance is an expense I can claim, without receipts, in fact I can claim it even if I didn’t actually buy anything.
- 2. Myth: A 'special dispensation' with the Inland Revenue means one Umbrella Company can allow contractors to claim more expenses than another.
- 3. Myth: I can claim breakfast, lunch and dinner meal allowances as an expense every day no matter where I am.
Lisa Keeble, Managing Director ContractorUmbrella said: “It is extremely difficult to gain safe and ethical advice as a contractor. The implications of getting it wrong can be time consuming and very expensive with the Revenue clawing back lost tax and NI contributions, as well as levying financial penalties”.
The full list is available on its website.
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The Editor
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