Tax Return Expenses Category

Hi Experts

I have my own sole trader business and during 2010/11, I undertook a separate contractor role and used XYZ as my umbrella company.

I'm currently doing my short tax return for my self employed work and it states something that you can't use this form if employer has:

• '(a) not deducted tax from the whole taxable amount or
• (b) told you the value used to arrive at PAYE was lower than it should have been'

My question is would the expenses I claimed mean that I would fall into this category?

For info, what I got from XYZ umbrella company was that they were unable to comment with the following:

"As a company, XYZ umbrella is covered by a dispensation agreement we have negotiated with HMRC and it means that we do not need to submit further paperwork (P11d forms) to HMRC for the expenses we have already offset for our employees."

Can you help? - other than HMRC, I don't know who else to ask.

Thanks

Simon

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Hi Simon

When you left XYZ umbrella company you will have been given a P45, or if you were with XYZ umbrella company at 5 April you will have received a P60.

On either of the forms will be details of Pay, Tax and reference number. The boxes to be completed are pay in 2.2, Tax in 2.3 and employers reference number in 2.6.

XYZ umbrella company have pemission from HMRC to pay allowable expenses without having to report details to HMRC - and you do not need to declare those expenses on your self assessment form.

You do not fall into either category to which to refer.

Bob Jones

Internet Taxation