Subsistence claim for lunch

[malvolio]

This sounds like entertaining, whilst the company can pay for this, the company does not get tax relief on the cost.

Alan

Quite true. It is clearly marked up in the data my accountants use, and I rely on them to make the appropriate deductions (or not) for CT - as a percentage of annual profit it is usually vanishingly small.

[VectraMan]

The subsistence allowance of £5/day (£10/day if overseas) is for minor incidentals, such as papers, laundry etc, however what you spend it on is your choice.

Alan

That's surely the overnight stay incidental expenses. I understood (this is probably going on what Parasol said when I was with them), that as long as you worked more than 5 hours a day (including travelling) you could claim £5 per day for substinence (but you needed a receipt), rising to £15 per day if you worked and travelled more than 11 hours in a day. On top of that, you could claim £5 for incidentals if staying overnight without any receipts.

I've never bothered with lunch because getting receipts for a sandwich is a pain, but I did used to claim for Little Chef meals on the way home from time to time. So presumably you'd say that's not allowed either as I wasn't staying away?

[Nixon Williams]

That's surely the overnight stay incidental expenses. I understood (this is probably going on what Parasol said when I was with them), that as long as you worked more than 5 hours a day (including travelling) you could claim £5 per day for substinence (but you needed a receipt), rising to £15 per day if you worked and travelled more than 11 hours in a day. On top of that, you could claim £5 for incidentals if staying overnight without any receipts.

I've never bothered with lunch because getting receipts for a sandwich is a pain, but I did used to claim for Little Chef meals on the way home from time to time. So presumably you'd say that's not allowed either as I wasn't staying away?

The flat rate subsistence allowance is the £5/day (£10/day overseas) can be claimed, if away from home on business.

The other allowances were presumably agreed with the Revenue, they are not flat rate allowances but what can be claimed upto this sum without having to report it to the Revenue. Receipts should be obtained and kept. So if you incurred the cost and it fell within the dispensation guideline then you should be Ok to claim and it not reported on the P11d.

Alan

[Goya]

The subsistence allowance of £5/day (£10/day if overseas) is for minor incidentals, such as papers, laundry etc, however what you spend it on is your choice.

Alan

Does anyone actually bother claiming for this (daily)?

I can't be arsed with the paperwork, receipts, etc. so have never bothered.

[IanIan]

My umbrella said I could claim breakfast if I eat it before 7.30am. (I commute into London.)

[Nixon Williams]

Does anyone actually bother claiming for this (daily)?

I can't be arsed with the paperwork, receipts, etc. so have never bothered.

Some do, it depends if they can be bothered!

Alan

[Mustang]

Hmmm.......had better stop claiming for my lunches then!!

[wantacontract]

lunch

yeah, i use to claim lunch religiously when i was a permie...would always spend upto £10......or a bit over...

now as a contractor, once I found out its easier not to claim because of all the hassle...I try to have cheapo lunches!!!!

[THEPUMA]

I disagree. If the travel is allowable then that any associated subsistence (and accommodation) is allowable. All lunches whilst at a client's site, coffees, etc are tax-deductible if the travel to get you there was.

In fact there was a case where a guy made himself sandwiches, took them to work and claimed them as an expense. This was not allowable but the point was made that had he gone out at lunchtime and bought the ingredients it would have been.

Also, there is nothing in tax legislation that says you have to keep a receipt in order to claim an expense (despite what HMRC might tell you). Clearly it is preferable to keep receipts where possible but I encourage my clients to maintain a record of all subsistence expenses incurred, irrespective of whether or not it has been possible to get a receipt.

[Waldorf]

I no longer have my own company (don't worry I am thinking of starting one again, been conned with a big umbrella!) when I did i was stung by the Revenue for claiming lunches, would not do that again. I want to claim what I can but I do not want hassle from the Revenue from dodgy schemes.

Surely the best way to prove you have sepnt money is with a receipt? keeping cheque stubs etc is just not practical.