Expenses When Staying Away from Home

[PerfectStorm]

Don't bother claiming for alcohol - it's not wholly and exclusively for business use.

'Wholly and exclusively' is such a red herring anyway - PCs and iPhones are claimable, suits aren't.

[northernladuk]

'Wholly and exclusively' is such a red herring anyway - PCs and iPhones are claimable, suits aren't.

Not really. It's a pretty accurate rule of thumb and the two you mention have particular exceptions for fairly obvious reasons. Even then there are caveats around significant work use. Just because there are a few oddities it doesn't mean the the whole rule of thumb doesn't work.

[LondonManc]

I really appreciate people taking the time to respond, but it's amazing how many questions have been answered that I didn't ask!!

Firstly, I choose how much I spend based on enjoying my life whilst away during the week, as opposed to busting a gut, staying in a hovel just for maximum profit. I will still have a profit after expenses, that is what it's about to me.

Follow up questions: How do I get a detailed receipt for AirBnB showing the correct VAT then? Surely they have a legal obligation to provide that? Note that they actually offer business specific accounts as I see they have noticed my email domain - So they are obviously appealing to business customers.

As for this lease accommodation - Whether it is being sublet inappropriately is irrelevant to me unless it affects my business finances/expenses (and I have no proof it is being sublet). The current tenant has been their happily for 2 years. On Friday when I get keys and make the first payment we will be signing an Assured Shorthold Tenancy Agreement which is a legally binding document. As I have already stated I will be paying a monthly rent and receiving a receipt for each payment. So for the doubters - Specifically what is required to turn what some suggest is dodgy into someone totally above board?

Thanks all.

It's your first time staying away in London but you know it all already. Good for you.

[SueEllen]

I really appreciate people taking the time to respond, but it's amazing how many questions have been answered that I didn't ask!!

Firstly, I choose how much I spend based on enjoying my life whilst away during the week, as opposed to busting a gut, staying in a hovel just for maximum profit. I will still have a profit after expenses, that is what it's about to me.

Follow up questions: How do I get a detailed receipt for AirBnB showing the correct VAT then? Surely they have a legal obligation to provide that? Note that they actually offer business specific accounts as I see they have noticed my email domain - So they are obviously appealing to business customers.

As for this lease accommodation - Whether it is being sublet inappropriately is irrelevant to me unless it affects my business finances/expenses (and I have no proof it is being sublet). The current tenant has been their happily for 2 years. On Friday when I get keys and make the first payment we will be signing an Assured Shorthold Tenancy Agreement which is a legally binding document. As I have already stated I will be paying a monthly rent and receiving a receipt for each payment. So for the doubters - Specifically what is required to turn what some suggest is dodgy into someone totally above board?

Thanks all.

You clearly haven't rented before in England and Wales....

[Pondlife]

Another consideration primarily for your new housemate is that whilst technically the rent they pay has doubled, they now have a new income stream that will need to be declared to the taxman.

[vwdan]

Also as you have cooking facilities you can't expense alcohol, your breakfast and dinner.

Absolutely nothing in any legislation or HMRC guidance that says this or similar.

It seems to be a common line of thinking, even by accountants, but I've yet to find (or be sent) anything which overrules the simple concept that you're away from home, on a qualifying journey and can claim reasonable sustenance. You don't have to cook just because you have cooking facilities, and you don't have to cover it yourself either. If somebody can find something I'm genuinely interested, as I've had this debate so many times and nobody has yet provided anything to truly back it up.

Likewise, there's nothing magic about alcohol beyond the whole "reasonable" thing. I don't really drink wine, but I wouldn't think twice about having a few pints with a meal (Even fully employed on PAYE)

Recent similar thread about Lunch: https://forums.contractoruk.com/busi...-expenses.html

[northernladuk]

Absolutely nothing in any legislation or HMRC guidance that says this or similar

https://www.gov.uk/hmrc-internal-man...anual/bim37660

Not exactly the same but a start. Duality and eat to live seem a pretty common theme even if it's not enshrined in an example.

Plenty of subject matter specialists also saying the same..

Shout99 : Claiming for meal allowances

If what you are saying is true there wouldn't be the raft of information out there advising more or less the same.

[Lance]

https://www.gov.uk/hmrc-internal-man...anual/bim37660

Not exactly the same but a start. Duality and eat to live seem a pretty common theme even if it's not enshrined in an example.

Plenty of subject matter specialists also saying the same..

That case is about claiming subsistence when not travelling, or staying away.

When staying away then the business travel rules take over. They have no problems with alcohol to the best of my knowledge (although not explicitly allowed by HMRC they are not explicitly disallowed). My accountant is very happy for alcohol claims when staying away, but does insist that any receipts with a large number of drinks are classed as business entertaining rather than an expense.

Of course if I'm commuting daily then claiming alcohol is a no-no except as business entertaining.

[SuperLooper]

If what you are saying is true there wouldn't be the raft of information out there advising more or less the same.

Everyone says it, so it must be true. Right.

[vwdan]

https://www.gov.uk/hmrc-internal-man...anual/bim37660

Not exactly the same but a start. Duality and eat to live seem a pretty common theme even if it's not enshrined in an example.

Totally different I'd say - self employed and discussing meals away from a qualifying journey. He wasn't entitled to claim any sustenance, but attempted to wrap it up as required for the role.

Plenty of subject matter specialists also saying the same..

Shout99 : Claiming for meal allowances

If what you are saying is true there wouldn't be the raft of information out there advising more or less the same.

Sure, but you'll find lots of "It's a grey area" or throwaway statements with very little true substance. It might well be the safest place to sit, but I pushed both SJD and Gorilla for further guidance and they couldn't really provide any. We know that a meal prepared at home is dis-allowable, BUT you can outright choose to pick up a sandwich on the way to work instead and that is - that's all in black and white in their guidance.

It is indeed an area that HMRC haven't provided much guidance on, I'll grant you.

And, I'm sure like most people, there are plenty of myths and "Because that's what I was taught" in your industry - I don't think accountancy is that much different.

I suppose the problem is that there's a "Don't push it" element to all of this, but we all have different limits. Personally, I tend to base it off what I'd put up with being sent away by an employer - and, just because they've found an apartment instead of a hotel doesn't mean I'm going to start putting my hand in my pocket to buy food to cook. Obviously that's a long way from legal advice, just giving some insight on my thought process.