Best way to deal with 'out of pocket' expenses?

[MugsGame]

I'm working for a client that requires me onsite at one of their offices 150 miles away 2-3 days a week. I stay in a hotel which they pay for directly, but I generally end up paying for dinner and other meals.

Up to now, I've been paying for these costs from my own pocket, ie. from my personal bank account, so it's money I've already paid tax on. I'm claiming these expenses as out of pocket expenses through my company, and re-billing them to the client at invoice time.

Is there a 'better' way of doing this? Can I, or should I, simply pay these expenses right out of the company bank account? Or should I get a business credit card (or personal credit card?) and use that for expenses then pay off the balance once a month?

I've previously only had contracts that I've been able to commute to, or allow me to work from home, so this is a new problem for me. I run a standard Ltd co.

Suggestions for best practice, please?

Many thanks.

[blacjac]

I'd do what your doing.

But I'd pay them with a personal credit card that gives cash back, or some other benefit. Then pay the balance in full when reembursed from MyCo.

[ASB]

What you're doing is fine. There is a view that if the business can pay them directly it is better - but only in terms of the audit trail and the vat supply chain is not broken. Also the regime for the expenses to be claimable as a company expense is arguable slightly easier.

[MugsGame]

I'd do what your doing.

But I'd pay them with a personal credit card that gives cash back, or some other benefit. Then pay the balance in full when reembursed from MyCo.

Right, OK. I guess I can't just pay the credit card bill direct from MyCo then?

Thanks.

[diesel]

correct me if i am wromg but sure you can claim up to £5 per night non-receiptable expenses from HMRC (and thsu your client and LTD co). Adds an extra £5 in your pocket just for the hassle of working away!

[norrahe]

correct me if i am wromg but sure you can claim up to £5 per night non-receiptable expenses from HMRC (and thsu your client and LTD co). Adds an extra £5 in your pocket just for the hassle of working away!

according to my accountant i can claim £10 per day, for working away from home.

[Alan @ BroomeAffinity]

correct me if i am wromg but sure you can claim up to £5 per night non-receiptable expenses from HMRC (and thsu your client and LTD co). Adds an extra £5 in your pocket just for the hassle of working away!

No it doesn't. It reduces your taxable profit by £5 thus reducing your CT liability by £1.05.

[Alan @ BroomeAffinity]

according to my accountant i can claim £10 per day, for working away from home.

if you are overseas.

[diesel]

No it doesn't. It reduces your taxable profit by £5 thus reducing your CT liability by £1.05.

thats if you claiming it from your LTD Co. Still £1.05 better in your pcoket than Mr HMRC.
But cant see why OP cant claim extra £5 out of pocket expenses on top of his meals to cover telephone calls, newspapers, drinks from coin machines etc.

[Trev16v]

thats if you're claiming it from your LTD Co.

How else could it be?