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Expense dispensations
Overview

Much has been written about expense dispensations, although mostly by parties with vested interests.

The issues stem from what is a legitimate expense and whether receipts are required or not?

In the simplest of terms:

If the expense has not been incurred it cannot be claimed – whether receipts are required or not.

Claims can only be made for the amount incurred, not the maximum non-receipted dispensation

Any challenges by HMRC on expense claims where an additional tax liability is assessed as due, generally can fall back onto the contractor if not met by the provider.

Fact or fiction
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