Subsistence - do I need receipts?

[maxima]

If I run my own Ltd and a contract is outside IR35...

Do I need receipts for every food/drink I bought during work hours and commuting?

Or I can claim automatically 15 pound a day (if 10hr out of home).

[Spartacus]

Yes.

No.

Read the sticky about dispensations.

[ASB]

"Do I need receipts for every food/drink I bought during work hours and commuting?"

Only if you get investigated

"Or I can claim automatically 15 pound a day (if 10hr out of home)."

Yes, but it might prove counterproductive in investigated - you can claim what the hell you like if you can accept the consequences.

A search migh prove fruitful.

[maxima]

Ok. I understand the point. It might be sensible to ask ones to prove expenses.

But why I asked - I work along with local guy who is contractor for a while. He is very happy with his accountant (some partnership in North London). He said - the guy who actually care about his accounts is also auditor. He assured that this guy is perfectly aware of how to avoid most of IR35 threats.

But when we were buying lunch I asked for receipt and he (the contractor not accountant) didnt. I asked - why dont u need receipt. He said - I dont need it, I can claim up to the daily limit. I asked - did your accountant told you so. He said - yes.

The real question for me is - shall I run off such accountant?

[boredsenseless]

Ok. I understand the point. It might be sensible to ask ones to prove expenses.

But why I asked - I work along with local guy who is contractor for a while. He is very happy with his accountant (some partnership in North London). He said - the guy who actually care about his accounts is also auditor. He assured that this guy is perfectly aware of how to avoid most of IR35 threats.

But when we were buying lunch I asked for receipt and he (the contractor not accountant) didnt. I asked - why dont u need receipt. He said - I dont need it, I can claim up to the daily limit. I asked - did your accountant told you so. He said - yes.

The real question for me is - shall I run off such accountant?

Okay, now firstly let me say that I understamd the need for and indeed even use an accountant.

However the consistent view on here is that my accountant said it was okay so I do it.

Let me remind you that accountants are experts in their field but they don't know everything and the interpret things differently from one to the next.

Ask for help but have the brains to evaluate their answers rather than just blindly acting on what you are told. remember if the sh1t hits the fan you are the one in the dock the accountant is protected unless they have been negligent.

So next time you here the phrase its okay an accountant said remember :

a) they are probably right
b) have you understood what they said enough to agree with their ideas.

Once again this is not meant as a slight on any accountant more a slight on the contractor midset that they can abdicate all responsibility to a third party

[Sockpuppet]

Of course the accountant will say that. He gets more money the more you get investigated.

[tim123]

Ok. I understand the point. It might be sensible to ask ones to prove expenses.

But why I asked - I work along with local guy who is contractor for a while. He is very happy with his accountant (some partnership in North London). He said - the guy who actually care about his accounts is also auditor. He assured that this guy is perfectly aware of how to avoid most of IR35 threats.

But when we were buying lunch I asked for receipt and he (the contractor not accountant) didnt. I asked - why dont u need receipt. He said - I dont need it, I can claim up to the daily limit. I asked - did your accountant told you so. He said - yes.

The real question for me is - shall I run off such accountant?

let me guess.

Mike Saunders

tim

[maxima]

Of course the accountant will say that. He gets more money the more you get investigated.

Crazy.. I was suspecting something like that.

[Crossroads]

If I run my own Ltd and a contract is outside IR35...

Do I need receipts for every food/drink I bought during work hours and commuting?

Or I can claim automatically 15 pound a day (if 10hr out of home).

Look at this a different way:
1. Are you invoicing the customer for these expenses? What will they allow, ad what do they want to see?
2. You can claim whatever your employer (in this case, YOU) says you can.

However, if you are planning on offsetting these against Corp Tax then what is allowable - i.e. a justifiable business expense, and how can you prove you actually spent they money?

[MarillionFan]

No you dont need any. Plus it's £25 per day.