Daily Subsistence

[pisces]

The grey area that is obviously evident means that people like me get disgruntled that when I go out for lunch a contarctor next to me has the big slap up meal and claims the entire lot as an expense and to date over 3-4 years of doing it he's neverbeen caught so why would he operate any differently.

.

But he's not claiming a free slap up lunch. He still has to pay for the lunch.

[Bluebird]

But he's not claiming a free slap up lunch. He still has to pay for the lunch.

correct, all that happens is that he claims it as an expense, and therefore recieves that money without any tax being deducted.

So his meal that costs £30 costs £30, but yours which costs £30 costs you £40...

[ASB]

Have just realised what you meant....being away from home i.e. overnight!

unavoidable expense would not be I could have brought from lunch from home or gone home for it, I was forced to buy it whilst at temporary workplace.

As a general principle lunch is simply never claimable. The fact that it is unavoidable is irrelevant, the fact it is only because of work is equally irrelevant.

If you search for "duality of purpose" you can turn up some of the case law.

http://www.hmrc.gov.uk/manuals/bimmanual/BIM37900.htm
http://www.hmrc.gov.uk/manuals/bimmanual/BIM37920.htm

This is unliklely to make anything clearer

The lunch is claimable if it is part of the travel, so if you (for example) stop on the way to a site for lunch you may probably be OK.

[chicane]

When I was working away from home Monday-Friday earlier this year, my accountant advised me that allowable expenses included anything I needed to buy from leaving the house on Monday morning to returning on Friday eve.

[Damo1176]

Thanks all, I have had a multitude of answers, different reasons, different ideas, different interpretations. MIght starve myself, lose weight and that way I don't spend, that way no expense incurred LOL

[ruth11]

I'm going to Email Parasol tonight on this subsistence issue because I just had a conversation with a chap who told me, when questioned, that £15 per day subsistence is my entitlement and therefore would never need receipts. I pushed him on this and asked if I were to be investigated by the HMRC, I would need to have the receipt otherwise I'm going to be in trouble and he said not. He said they (Parasol) would simply point HMRC to the fact that I have been claiming (with receipts for petrol) 700 miles a week and that I live in x, travel to y, therefore spending over 10 hours away from home and this would be enough to convince HMRC to go away because I am entitled to it!

I know I know, I should be going Limited, but it's a lot to take in, I might be starting my first contract in 2 weeks time and I don't realy feel that this is enough time to get my head around Incorporation and the work I need to do to sort it all out. I will inevitably go Ltd in the future, but the first few weeks, I think it would be easier to go Parasol. But not if they're going to lie to me.

[IanIan]

When one is working as an employee of an umbrella, why is one entitled to any expenses at all regardless of the interpretation?

Permanent employees don't have this issue of whether to claim expenses so why should contractors who are officially employees too?

[minstrel]

When one is working as an employee of an umbrella, why is one entitled to any expenses at all regardless of the interpretation?

Permanent employees don't have this issue of whether to claim expenses so why should contractors who are officially employees too?

Not sure what your point is. Are you trying to say that permanent employees never put in expenses claims for lunch?

I used to work for a big 5 consultancy as a permie and the policy was to put in a flat claim of £5 for lunch every day you were working at client site, no receipts required.

[mr it]

umbrella companies

can i first of all say that never use ASMG, if you have recognised they have always bee affiliated with skills alliance, my friend who works there told me that ASMG and skills alliance are the same company and are based on beech street near the barbican station, they fool you into signing up with them and don't explain anything clearly and always say they can offer better than parasol and prosperity 4, i will never use ASMG again.

ASMG & Skills Allaince are the same company?

[Old Greg]

I know I know, I should be going Limited, but it's a lot to take in, I might be starting my first contract in 2 weeks time and I don't realy feel that this is enough time to get my head around Incorporation and the work I need to do to sort it all out. I will inevitably go Ltd in the future, but the first few weeks, I think it would be easier to go Parasol. But not if they're going to lie to me.

I went Ltd with my first contract, sorting it out at 3 days' notice. It can be done easily, particulatrly if you're prepared to pay a premium and get one of the accountancy firms to set everythin up for you. Well worth it.