Can someone please clarify rules around subsistence - meal allowance

[FK1]

You are indeed correct. But when I went to the supermarket I was buying a cheap sandwich etc and only costing a couple of quid. Where I am now a basic sandwich and coffee, not unreasonable for lunch, is costing me £7. Worthwhile I think.

I believe Cycleprog is correct in everything they have posted. I am also aware that HMRC look out for companies that have no expenses.

Sounds like it is SJD at issue here. Someone else said InTouch allow it as do Nixon Williams.

I used to buy snacks from Starbucks on my way (Edinburgh - Liverpool) to a client.
I put that £2000 to the SJD spreadsheet as expenses but a SJD accountant silently removed that from the Accounts draft.

When I asked why I was told "coffee" could not be claimed.
Yes the coffee was referenced in the bank transactions but that not-asking-me and do-not-caring about my money made me pissing off as I have not been checking accounts figures for years trusting the professionals and being too busy.

I did not blame SJD as some accountants I used there were brilliant. I blamed myself to be stupid trusting that much and got things under my own control now.

[Contreras]

I believe Cycleprog is correct in everything they have posted. I am also aware that HMRC look out for companies that have no expenses.

It sounds odd that they would do that, any idea why?

[northernladuk]

It sounds odd that they would do that, any idea why?

Wouldn't indicate it's a shell for something not quite above board? Something can't be right so why not gave a look?

[FK1]

Wouldn't indicate it's a shell for something not quite above board? Something can't be right so why not gave a look?

Not everyone has travelling and accommodation expenses. Some might work remotely or locally. The lack of that expenses indicates nothing.

I doubt a percentage exists as a criteria for the radar. The turnover might be £120,000 with expenses £2000 and the same expenses could be with £30,000 turnover.

I had expenses around 25% of my turnover and now it will be around 3%. It still be a quite right just different contracts and my personal choice to work remotely.

So a zero or certain minimum for expenses? What idiots would claim nothing?
What minimum then?

[northernladuk]

Not everyone has travelling and accommodation expenses. Some might work remotely or locally. The lack of that expenses indicates nothing.

Do you think the only expenses a company claimed is travel and subsistence? What about accountancy, insurances, office equipment, tools to do whatever you so yadda yadda. I'd say zero expenses is very unusual so would be worth a sniff.

[Contreras]

Do you think the only expenses a company claimed is travel and subsistence? What about accountancy, insurances, office equipment, tools to do whatever you so yadda yadda. I'd say zero expenses is very unusual so would be worth a sniff.

Ok, then "HMRC look out for companies that have no expenses" would be an aside and of no bearing whether to claim for T&S. Which in context isn't what seemed to be being suggested, that's all.

[GB9]

Ok, then "HMRC look out for companies that have no expenses" would be an aside and of no bearing whether to claim for T&S. Which in context isn't what seemed to be being suggested, that's all.

I waa told that the assumption is that genuine businesses incur expenses, of which T&S is one type.

The approach of someone not putting T&S expenses through sounds to me like thinking they may fall under IR35 but if they don't draw attention to themselves they will get away with it.

My own belief is that I am firmly outside ir35 and so will claim for everything my accountant says is permissible, including lunch.

Sounds like SJD are the problem. Do they want to post and tell us why the expenses in question are not permissible?

[TheFaQQer]

Do they want to post and tell us why the expenses in question are not permissible?

I think we know the answer to that question already

[northernladuk]

I used to buy snacks from Starbucks on my way (Edinburgh - Liverpool) to a client.
I put that £2000 to the SJD spreadsheet as expenses but a SJD accountant silently removed that from the Accounts draft.

When I asked why I was told "coffee" could not be claimed.
Yes the coffee was referenced in the bank transactions but that not-asking-me and do-not-caring about my money made me pissing off as I have not been checking accounts figures for years trusting the professionals and being too busy.

I did not blame SJD as some accountants I used there were brilliant. I blamed myself to be stupid trusting that much and got things under my own control now.

You put £2k's worth of snacks and coffees while travelling through your company?!??!

[GB9]

You put £2k's worth of snacks and coffees while travelling through your company?!??!

Easily done from experience! If you rack up a lot of time on the train then your expenses can soon follow.

Where it gets interesting is that accountant says that coffees etc are not claimable but lunch is. So tax rules effectively say I can only have one claimable drink per working day.

Where I am at present if I want a coffee I have to go to one of the coffee shops outside. Average cost £2.50. If I were at home then I would have a cup of instant, but being at the client site results in a £2.50 spend. Twice per day. I argue that as the cost is incurred as a result of work it should be allowable. Accountant says no.