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YOUR ALLOWABLE EXPENSES THROUGH ATLANTIC HAVE INCREASED
The question of contractor payroll compliance has become so important to Her Majesty's Revenue and Customs (HMRC) that they now have a dedicated team with a remit of auditing the operations of all suppliers of Umbrella Services. As you may know, last month we invited the HMRC audit team to our offices (Click Here to read the news story).
We are delighted to report that HMRC were so satisfied with our processes that they actually INCREASED the allowances which we can claim on your behalf. This is of course great news for you as it will increase the tax free element of your pay.
Our Dispensations for subsistence claims have increased to:
£5.50 for daily Breakfast Subsistence (leaving home before 07.00am)
£7 for daily Off Site Subsistence (working more than 5 hours per day)
£16.50 for daily Evening Meals Subsistence (working more than 10 hours per day, with receipt for evening meal)
This means that where you are incurring costs for breakfast, lunch and dinner you can claim these subsistence amounts without us having to see receipts. (Please note though that you MUST incur a cost and keep receipts for your own records.)
These Dispensation amounts from HMRC represent a guideline. Where you incur greater and REASONABLE costs, these can also be claimed on production of receipts.
Our online systems have been updated with these increased rates so they now apply to your claims.
Atlantic has always operated in an entirely compliant fashion making sure that we provide the best solution possible whilst simultaneously protecting you from falling foul of the law. The results of our HMRC audit last month only served to underline and demonstrate this compliance.
SOME FURTHER CLARIFICATION
Reflecting our commitment to provide you with a totally safe and legal payroll solution there are two specific areas that need clarifying:
1. Internet Access
It is no longer possible to claim internet access as an expense. Again, this is an HMRC ruling rather than our own.
2. Larger Purchases - Sundry Items
If you require Atlantic to purchase larger items for you for your business use (which remain the property of Atlantic, such as hardware, software or personal protection equipment) you must first send us a letter detailing why you need this item to perform your duties. In addition to this letter, to be able to authorised the purchase, it is an HMRC requirement that the following criteria are met:
You agree to pay a security deposit of 10 per cent of purchase price in advance of the purchase. (This requires your contractor account to be in credit to this value before you purchase the item.) You supply us with the original VAT receipt for the purchase. (This will not be returned to you so you should keep a copy yourself.)
3. Finally, where we require a receipt from you for ANY claimable item it is now a requirement set down by HMRC that this receipt MUST be an original.
We are no longer able to accept copies. (Due to the vagaries of the UK postal system many of our contractors now opt to send their receipts to us via a guaranteed delivery service.)
ASSURANCE
Atlantic offers you one of the most competitive and HMRC-compliant solutions in the industry today; backed up as always with first class customer service. We hope that these advisory notes provide you with further assurance that at Atlantic our ethos is very much focused on safety and peace of mind. Our expenses team are fully trained and up to speed with changes laid down by HMRC. If you do have any further queries they would be delighted to help.
A full copy of our Expense Manual (including a letter template for a sundry item request) as well as our recently re-issued and improved HMRC Dispensation document is available via the information page of your online account.
Thank you for choosing Atlantic and for your continued custom.
These changes come into force from the 10th January 2008.
Kind Regards
Atlantic Umbrella Company Ltd
Cobb House
2-4 Oyster Lane
Byfleet
Surrey
KT14 7DU
Tel: 0845 045 1021
Fax: 0845 045 1022
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Company Registration No: 04445010 | VAT Registration Number: 879579926