At Price Hill & Co Limited, we aim to maximise the take home pay of our clients. We use different mix of tax strategies to ensure that our clients take advantage of all legally available expenses and allowances.

By including legitimate business expenses, it is possible to reduce the tax burden and increase the take home pay.

The business expenses claimed by consultants must be legitimate. One myth surrounding subsistence expenses is that consultants can claim a set amount per day even though they may not have spent this. This simply is not true. Dispensation agreements are sometimes used as “evidence” that HMRC have agreed that consultants can claim a set amount for subsistence. BEWARE of these claims.

DISPENSATION AGREEMENT

In a normal business situation, a company must keep all receipts as evidence of the expense.
However, for large companies that employ many people, HMRC can agree that not all receipts for subsistence have to be kept. They can agree with the company that say up to £15 per day subsistence, only say 30% receipts may be kept. The company is then obliged to check the sample and ensure that the amounts claimed correspond to the receipts.

HMRC do not say “You can claim £15 per day without spending the money”

Penalty

If HMRC find that consultants have claimed amounts that they have not actually spent, they will treat these amounts as allowances and the consultant will have to pay PAYE taxes and NIC on these amounts. Furthermore, HMRC may levy penalties on the consultant.