Quick question - expenses

[Donvigeo]

All,

Can you please provide more insight into what the maximum allowable expense one can claim if working away from permanent place of residence

Contract is not IR35. I read online I can claim £5 subsistence per day does that indicate any food taking as dinner for e.g over this limit is not allowable ?

Do I require a receipt to support the £5 as well. I ask as I buy from chicken and chips food stores and this guys don't provide receipt and don't accept cards so there's no way I can evidence this.

Secondly I keep mileage log but hardly keep fuel receipts, do I have to keep receipts of every fuel bought as well? I'll love to hear from veterans please.

[northernladuk]

At the risk of getting flamed but... Have you asked your accountant?

Overnight expenses has been covered quite a bit on here so you could try a search using the method below.

http://forums.contractoruk.com/showthread.php?t=58311

Try a term like 'overnight expenses'

[malvolio]

Another (slightly ore useful) hint: you can only claim what you've spent. And the £5 allowance is basically for overnight or very long days, not your basic 8 hours plus commuting time. The basic rule is if you're making a profit on expenses you're doing something illegal...

Most accountants websites have a list; Nixon Williams's and SJD's both do to my knowledge, bound to be others.

[Lance]

The basic rule is if you're making a profit on expenses you're doing something illegal...

Except mileage. You can make a personal gain on the 45p per mile HMRC allow with no BIK.

[v8gaz]

Except mileage. You can make a personal gain on the 45p per mile HMRC allow with no BIK.

If you're lucky enough to have a car that can bought, run and be maintained for 45p per mile.

[malvolio]

Except mileage. You can make a personal gain on the 45p per mile HMRC allow with no BIK.

Erm... The average car costs around 60p a mile to own and run...

[SueEllen]

All,

Can you please provide more insight into what the maximum allowable expense one can claim if working away from permanent place of residence

Contract is not IR35. I read online I can claim £5 subsistence per day does that indicate any food taking as dinner for e.g over this limit is not allowable ?

Do I require a receipt to support the £5 as well. I ask as I buy from chicken and chips food stores and this guys don't provide receipt and don't accept cards so there's no way I can evidence this.

Secondly I keep mileage log but hardly keep fuel receipts, do I have to keep receipts of every fuel bought as well? I'll love to hear from veterans please.

All takeaways I've asked will at least provide a handwritten receipt though I've got a non-VAT one in Chinese before. The digits were in English characters.

I've explain why I need the receipt and they are all happy to oblige.

[Lost It]

Erm... The average car costs around 60p a mile to own and run...

Only if you insist on buying cars that are new or leased.

Worked out my 4 litre 1999 S Type Jaguar even at 23mpg and insurance/maintenance costs is still realistically within the 45p per mile bit. Only just, but still in there. Actually my bike costs more to run, tyres at £240 per 6 weeks completely wreck the allowance.

[PerfectStorm]

As a shop selling VATable goods (hot food) surely a receipt is a must?

[malvolio]

Only if you insist on buying cars that are new or leased.

Worked out my 4 litre 1999 X Type Jaguar even at 23mpg and insurance/maintenance costs is still realistically within the 45p per mile bit. Only just, but still in there. Actually my bike costs more to run, tyres at £240 per 6 weeks completely wreck the allowance.

In which case you aren't taking into account all the on-cost associated with the car, such as lost interest on capital (minimal these days but still a factor), depreciation (especially on unfancied things like X-types) replacements and so on. Yes an older car is cheaper than a new one - but not a one-year old one when the first depreciation hit and VAT has gone away - but its more than people think.