99% of Contractors still confused about Expense Allowances

Contractoruk.com in conjunction with Lisa Keeble, Managing Director of ContractorUmbrella and expert adviser on CUKís bulletin board, revealed in itís latest poll that tens of thousands contractors were still confused about issues relating to expense claims.

The online poll was launched following numerous questions on the bulletin board about whether receipts where necessary and what could and couldnít be claimed. A series of challenging questions was developed with the help of ContractorUmbrella to test the level of understanding amongst contractors on Expense claims. Lisa Keeble comments ëgood quality and ethical information about expenses is often hard to come by, this survey reveals just how tough it can be for contractorsí.

The key findings from the online poll were:

ï Nearly 99% of contractors thought claims for daily subsistence were possible without the need to keep any receipts ñ Contractors should always keep receipts, after all how would they prove to HMRC that they actually made the purchase in the first place.

ï 20% of contractors believed it was the Umbrella Company and its dispensation policy that dictated the expenses that they could claim. No it is HMRC

ï 98% of contractors believe that you can claim breakfast, lunch and dinner on a daily basis - Again this is not true, in fact used in conjunction with the first point about not keeping receipts could land the contractor with a very large tax bill and possible penalties for tax avoidance.

ï 40% of contractors think that by using an Umbrella Company they can increase their net pay by 40% or more - ALL umbrella companies must follow the same HMRC rules.

To review the full results of the poll visit: here and to find out the truth behind the common misconceptions visit ContractorUmbrellaís Myths & Facts page.

One final word, remember Contractors cannot claim for something they didnít actually pay for in the first place, or canít provide evidence that they did.

They will be personally liable for any underpaid taxes NOT the company they're working through or taking advice from.

Contractors would be wise therefore, to steer clear of companies and scheme providers promoting generous expense allowances with 'NO' receipts required.