The Truth About Dispensations

The truth about dispensations is fairly simple and relates specifically to deductible expenses. In certain circumstances expenses incurred by contractors are receivable in addition to their salary and these are completely tax free.

A wide body of case law has evolved which serves to assist in determining whether or not an expense is allowable. Basically, expenses that have been incurred wholly, exclusively and necessarily in the performance of duties are the only tax free expenses available. It does not matter about the industry sector that the employee works in. The above rule governs all employees. Under particular scrutiny is the expenses rule for employees travel and subsistence.

Working with Lowson Ward you can be assured that we really understand the legislation that surrounds travel to permanent and temporary workplaces. A workplace for example will be a temporary workplace if you attend the workplace in the course of a period of continuous work that lasts or is likely to last less than 24 months. There are various tests to apply to this rule and we will be able to tell you exactly whether they apply to you or not for each contract you undertake.

We are up front with our clients as to what can and can’t be claimed. We want to ensure that you maximise your tax position but do so safely which is why we’ve introduced our peace of mind guarantee. This is in place to safeguard you in the event of a tax investigation and to protect your true tax position.