Meals - Expenses - Cashless system

[astonishingxp]

Hi All

Apologies if this has been answered previously for limited companies but:

My current client operates a cashless system in their office food hall/canteen (i.e. you receive a smart card and top-up the balance manually, minimum £10 top up)

How would you go about claiming lunch expenses given that individual purchases are not recorded anywhere? Receipts are not available.

Can I just claim monthly for the "top-up" amount (i.e. £50 as recorded on my credit card statement) up to the value of the HMRC approved expenses amounts?

Any advice most welcome.

Thanks
B.

[Louisa@AardvarkAccounting]

Yes, you should claim the cost of the actual top up's that you make. As you will only be able to use this system whilst being on the client site (a temporary workplace).

Plus, you may find that you can get a statement that confirms the top up's that you've made too, for evidence.

I'd also recommend paying this where you can with a business debit/credit card, as then it will come directly from the business bank account and the description will be shown and easy to identify. Whereas, if you are paying personally and then reclaiming a round-sum amount each month for subsistence, you're accountant might keep asking about it

[northernladuk]

That's the quick and most sensible way to go but what about if they buy coffee, odd snack and stuff you wouldn't normally put through the company?

[Louisa@AardvarkAccounting]

If it's all within the 'reasonable' allowance for working at a temporary location, then it should all still go through.

HMRC's benchmark scale rates are:

Min journey time 5 hours: £5
Min journey time 10 hours: £10

But there are no 'authorised subsistence rates for general application'. There is no restriction on how many times you can eat/snack in the day...

[LondonManc]

If it's all within the 'reasonable' allowance for working at a temporary location, then it should all still go through.

HMRC's benchmark scale rates are:

Min journey time 5 hours: £5
Min journey time 10 hours: £10

But there are no 'authorised subsistence rates for general application'. There is no restriction on how many times you can eat/snack in the day...

Don't tell MF whatever you do! He'll have more expenses than his day rate.

I've generally not claimed meals while staying away as I'd be eating anyway. Getting a sandwich from the local sandwich shop near home is no different to getting one from a sandwich shop in London (barring the lack of San Pellegrino in the local sandwich shop).

[TheCyclingProgrammer]

That's the quick and most sensible way to go but what about if they buy coffee, odd snack and stuff you wouldn't normally put through the company?

There's no specific restriction on what you can and cannot claim as subsistence whilst on business travel or working at a temporary workplace. Strictly speaking any necessary subsistence taken while on business is allowable.

Common sense rule would be not to take the mickey but if you're just expensing the top up payments and they can only be used on site then I wouldn't worry about it.

[chopper]

How do irregular visitors (e.g. salesdroids, electricians, etc) pay for stuff in the canteen? Or is it a staff only facility? IR35 risk, using a permie facility?

[LondonManc]

How do irregular visitors (e.g. salesdroids, electricians, etc) pay for stuff in the canteen? Or is it a staff only facility? IR35 risk, using a permie facility?

If it's anything like the one I'm currently using at client site (and the one at Sky) you can buy visitor cards for a £2 deposit and get it back. All tills are completely cashless, as are vending machines. You simply cannot use cash so there's no IR35 implications for anyone.

[chopper]

If it's anything like the one I'm currently using at client site (and the one at Sky) you can buy visitor cards for a £2 deposit and get it back. All tills are completely cashless, as are vending machines. You simply cannot use cash so there's no IR35 implications for anyone.

IR35 implication if the canteen is staff only ;-)

[LondonManc]

IR35 implication if the canteen is staff only ;-)

Yeah, I know. That's why I said that it was cashless whoever you are, so there are no implications.