Taxpayers who include wildly optimistic expense claims in their self-assessment tax returns. Commenting on HMRC’s latest annual list of unrealistic expense claims. Those who aimed to pull the wool over HMRC’s eyes by claiming for spurious expenses, stating that they made life more difficult for honest taxpayers. Contributors David Redfern, founder – DSR Tax Claims and Angela MacDonald, HMRC Director General of Customer Services

Each year, HMRC issues a list of the most “wildly optimistic” expense claims received in self- assessment tax returns each year as a warning to taxpayers that spurious claims will be weeded out and rejected. Redfern examined some of this year’s wilder expense claims, which included hotel room service for prosecco and candles as well as vet fees for a pet rabbit and birthday drinks at a Glasgow nightclub. He stated that “some of these expense claims are clearly ridiculous and have rightly been rejected by HMRC as a result”. He added that although many businesses and individuals were unaware of all the areas of allowable expenses that they were entitled to claim, leaving them paying more tax than was required of them, there were others who were trying to defraud HMRC to the detriment of the rest of the UK’s taxpayers.

Commenting on these spurious claims, Angela MacDonald, HMRC Director General of Customer Services, stated that “It is unfair to make honest taxpayers pick up the bill for other people’s spurious claims, so HMRC will only accept sincere claims such as legitimate expenses for a job”.

Redfern noted that awareness of allowable expenses was essential in order to help small businesses, freelancers and contractors to maximise the financial efficiency of their businesses and noted that DSR Tax Claims had launched their ‘Knowledge is Power’ campaign to increase such awareness among construction contractors but he added “HMRC are very adept at weeding out false and phony expense claims and it’s not worth the penalties you will pick up as a result of being caught”. He urged taxpayers to ensure that they used legitimate sources of information when completing their business expense claims.