Getting an expense claim wrong: what happens next
And the difference between whether you or we spot it before HMRC do
Everyone miscodes something eventually. What matters is when it is found and how it is handled.
If we find it
We will let you know and tell you to recode the cost to your director's loan account (or the next most appropriate code). The tax calculation will then self-correct, and no harm is done. This is routine and happens in most companies’ books at some point.
If HMRC finds it
In an enquiry, disallowed claims mean the extra tax is payable with interest, plus a penalty that scales with behaviour.
Telling HMRC before they find it (an unprompted disclosure) reduces penalties substantially, often to nothing.
💡 Good to know: If you are not sure whether something is claimable, ask before you spend. Advice is included in your plan, and a two-minute question is cheaper than any penalty.
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