Expense policy to clarify

[andy-moo]

mwahahahaha

I’ve already viewed their dispensation my fellow friends. The same people pop up all the time on here, makes me wonder who you’re working for.

iam on to you!

Of course you have to keep your receipts, as a back up. Everything i do is by the book, and the advice i have received so far is spot on.

O and i almost forgot...... my wife is a solicitor and is quite hot on this too, although i don’t like her being right.

[LisaContractorUmbrella]

BIM47705 - Specific deductions: travel & subsistence: expenditure on meals and accommodation

What to do in practice

General rule

The cost of food, drink and accommodation is not in general an expense incurred wholly and exclusively for business purposes, since everyone must eat in order to live. They are (either wholly or partly) normal costs of living incurred by all and not as a result of trading, see BIM37900 onwards.

Where such costs are disallowable they cannot be apportioned to allow extra costs incurred from the necessity of lunching away from home or the place of business. The attempt to apportion betraying the essential duality of purpose.

Occasional business journeys outside the normal pattern
But extra costs may be incurred wholly for business purposes where a business is by its nature itinerant (for example in the case of commercial travellers), or where occasional business journeys outside the normal pattern are made. Modest expenses incurred in these circumstances may be deducted from business profits.

Overnight subsistence and accommodation expenses
Where a business trip necessitates one or more nights away from home, the hotel accommodation and reasonable costs of overnight subsistence are deductible.

This does not extend to overnight accommodation and subsistence at the base of business operations, even if there is a contractual requirement for the trader to reside in a particular place.

The reasonable costs of meals taken in conjunction with overnight accommodation are allowable, whether or not paid on the same bill.

The same treatment may be extended to traders who do not use hotels, for example, self- employed long distance lorry drivers who spend the night in their cabs rather than take overnight accommodation.

For more detail see BIM37670.

HTH

[Bluebird]

The thing is Lisa they'll still come back and say you made it up - they'll only believe it when the taxman has a tub of vaseline and is asking then to bend over...

[TheFaQQer]

The thing is Lisa they'll still come back and say you made it up - they'll only believe it when the taxman has a tub of vaseline and is asking then to bend over...

Generally, he doesn't use vaseline as it's not an expense that he can claim, since it's not entirely for business use, and it's really essential to him.

[andy-moo]

i travel to the same place of work each day, i spend less than 40% of my time there, as i travel to other sites, my contract is compliant within the 24 month rule, thus i can claim travel and subsitence, as i am at a temporary place of work.

and i quote from HMRC . . . .

EIM31837 - Travel expenses: general: scale of expenditure: subsistence
Section 338 ITEPA 2003

An employee on secondment at a temporary workplace may obtain relief for accommodation costs (see EIM31836) and also for the costs of subsistence attributable to staying at the temporary workplace. This covers necessary food and drink and may also cover costs associated with accommodation, such as utility bills and personal expenditure attributable solely to the business travel.

[LisaContractorUmbrella]

The thing is Lisa they'll still come back and say you made it up - they'll only believe it when the taxman has a tub of vaseline and is asking then to bend over...

You're right of course Bluebird though why anyone would want to risk that is beyond me

[TheFaQQer]

also for the costs of subsistence attributable to staying at the temporary workplace

Yes - you can claim subsistence that is required because you were in that particular location. For example, your temporary workplace suddenly needs you to stay late, you get a meal, which you can claim. If the subsistence incurred is not as a result of the job (e.g. you normally work in a temporary place until 8pm) then you can't claim it as an expense.

A normal day on site (whether this is a temporary site or not) does not mean that you can claim subsistence. An abnormal day there would mean that you probably could.

[eddiegee]

looks like andymoo is fine to claim from where iam standing.!!

and i too think that FAQ, bluebird are cohorts, unless they don't have much else to do but post on this site.

[Bluebird]

just because we [and Lisa] agree doesn't make us "cohorts", it just mean that you are getting a consensus of opinion.

The paragraph that andy quotes states about "secondment" - I think from his description he falls more into the "rep" type role which is covered elsewhere.

My opinion is that Andymoo is probably ok to claim milage & subsitence [ lunch and possibly eve meal if hours are extended], however there are a number of people of this forum who insist that they can claim £26 or some such figure per day un-receipted subsitence to cover lunch and other costs whist on-site, and this is not backed up by HMRC.

[andy-moo]

Yes - you can claim subsistence that is required because you were in that particular location. For example, your temporary workplace suddenly needs you to stay late, you get a meal, which you can claim. If the subsistence incurred is not as a result of the job (e.g. you normally work in a temporary place until 8pm) then you can't claim it as an expense.

A normal day on site (whether this is a temporary site or not) does not mean that you can claim subsistence. An abnormal day there would mean that you probably could.

going to these sites in a way puts the usuall routine of eating at a reasonable time out the window. I might stop at a Mcdonalds or something because of this. I can claim that as i would usually eat at a normal time if i was at my usuall place of workm, as well as mileage expenses. Thats all i was trying to say, maybe could have gone into more depth.