Another 2 year expenses question

[washed up contractor]

There's always a grey area around subsistence. One argument against is that you need to eat to live so it's not an expense that is wholly and necessary for your business. However, there is also guidance about paying for meals because you're having to travel/work away from your normal location.

There's no grey area about subsistence AFAIK. If you're away from home for more than 12 hours in a day but return home to sleep, you can claim £10 a day (Ive never had to produce receipts, either).

If you are required to stay away overnight, you can claim £25 or £30 a night (cant remember the rate because I havent stayed away of over 2 years) and again, apart from hotel invoice, havent had to produce receipts.

[Lance]

There's no grey area about subsistence AFAIK. If you're away from home for more than 12 hours in a day but return home to sleep, you can claim £10 a day (Ive never had to produce receipts, either).

If you are required to stay away overnight, you can claim £25 or £30 a night (cant remember the rate because I havent stayed away of over 2 years) and again, apart from hotel invoice, havent had to produce receipts.

not correct.

There's no limit to what you can claim as it's part of business travel. You do need receipts in case you're investigated.

12 hours or not has nothing to do with it either.

[SlipTheJab]

There's no grey area about subsistence AFAIK. If you're away from home for more than 12 hours in a day but return home to sleep, you can claim £10 a day (Ive never had to produce receipts, either).

If you are required to stay away overnight, you can claim £25 or £30 a night (cant remember the rate because I havent stayed away of over 2 years) and again, apart from hotel invoice, havent had to produce receipts.

Wrong, wrong, wrong.

[TheCyclingProgrammer]

There's no grey area about subsistence AFAIK. If you're away from home for more than 12 hours in a day but return home to sleep, you can claim £10 a day (Ive never had to produce receipts, either).

If you are required to stay away overnight, you can claim £25 or £30 a night (cant remember the rate because I havent stayed away of over 2 years) and again, apart from hotel invoice, havent had to produce receipts.

Sorry but this is all a load of rubbish.

Unless you have a dispensation to use scale rates (normally just umbrellas), then you must claim only what you actually spent and you just keep receipts or some evidence of expenditure. There’s also no upper limit on the amount as long as your claims are not “unduly lavish”.

[SueEllen]

There's no grey area about subsistence AFAIK. If you're away from home for more than 12 hours in a day but return home to sleep, you can claim £10 a day (Ive never had to produce receipts, either).

If you are required to stay away overnight, you can claim £25 or £30 a night (cant remember the rate because I havent stayed away of over 2 years) and again, apart from hotel invoice, havent had to produce receipts.

What you are quoting where the old rules some umbrellas use to use.

As a limited company director, company secretary or mere employee you have always had to proof or produce receipts for subsistence.

Most employers would set maximum amounts, and like umbrella companies, would have rules of what/when you could claim to avoid employees taking the p*ss. There as HMRC don't care apart from the £5 per night incidental expenses of staying away.

[Lance]

What you are quoting where the old rules some umbrellas use to use.

As a limited company director, company secretary or mere employee you have always had to proof or produce receipts for subsistence.

Most employers would set maximum amounts, and like umbrella companies, would have rules of what/when you could claim to avoid employees taking the p*ss. There as HMRC don't care apart from the £5 per night incidental expenses of staying away.

my last accountant told me not to claim the £5 as I was claiming all expenses by receipt. Was that wrong?

[TheCyclingProgrammer]

my last accountant told me not to claim the £5 as I was claiming all expenses by receipt. Was that wrong?

Yes I think so. The £5 is for incidental overnight expenses and is intended to cover small things that you probably wouldn’t have a receipt for.

[SueEllen]

my last accountant told me not to claim the £5 as I was claiming all expenses by receipt. Was that wrong?

There are certain things e.g. vending machines where you can't get a receipt so this is what the £5 is for.

[ladymuck]

I got the grey area bit from one of those talks given by some contractor accountancy firm. I can't remember which one as it was a while ago. They also claimed you could make a number (the exact number escapes me as I considered it to be BS) of £75 gifts to yourself (in addition to the annual £150 staff entertainment allowance), which I never fathomed where the hell they got that from.

It seems logical that all expenses have to pass the wholly and necessary test, and eating as a general activity doesn't fall within that. I think it's more the difference between expenses that do/don't need to be declared on your P11d rather than whether or not you can put them through YourCo. AIUI you can put whatever you like through YourCo, just be prepared to answer any questions and cough up if Hector disagrees with the tax treatment you apply.

[pr1]

I got the grey area bit from one of those talks given by some contractor accountancy firm. I can't remember which one as it was a while ago. They also claimed you could make a number (the exact number escapes me as I considered it to be BS) of £75 gifts to yourself (in addition to the annual £150 staff entertainment allowance), which I never fathomed where the hell they got that from.

It seems logical that all expenses have to pass the wholly and necessary test, and eating as a general activity doesn't fall within that. I think it's more the difference between expenses that do/don't need to be declared on your P11d rather than whether or not you can put them through YourCo. AIUI you can put whatever you like through YourCo, just be prepared to answer any questions and cough up if Hector disagrees with the tax treatment you apply.

gift value <=£50 (max £300 per year)
https://www.gov.uk/expenses-and-bene...ivial-benefits

not BS, nice tax free way to pay for your nespresso pods or a bottle of gin