Food expenses whilst abroad

**pmeswani** · 11 June 2009, 10:55

Originally posted by Torrango View Post

So I'm currently on a contract overseas, and after initially staying in a hotel, am now renting an apartment. Previously I claimed all hotel costs and all food costs (restaurants/supermarket) as expenses against tax. Now that I'm in an apartment with a kitchen, can I still claim food expenses given that they would be no different to if I were at home?

As an alternative, do the IR allow you to claim just a flat rate allowance for being away from home?

Firstly, if you want a flat rate allowance, become an MP.

Secondly, if your circumstances have changed in terms of your accommodation, speak to your accountant who will be able to advise you what you can and cannot claim from your business expense.

**ASB** · 11 June 2009, 11:02

The IR do allow the use of scale rate expenses when abroad (and also now in the UK I beleive). Search on HMRC using "scale rates".

**LisaContractorUmbrella** · 11 June 2009, 11:35

If there is no additional cost to you ie. you buy your food from a supermarket, at no greater cost than it would be at home then it cannot be claimed as an expense. If you are going to claim tax relief on an expense it has to be proved that there is a cost to you and that cost has been caused wholly and exclusively by the job that you do.

HTH

**Torrango** · 11 June 2009, 11:53

So is the key criteria here the availability of facilities for cooking in the accomodation (and equiv cost supermarkets)? For example I've often stayed in hotels (esp in the US) which have a small kitchen annex in the room, although I've never bothered using them except maybe to store stuff in the fridge.

**LisaContractorUmbrella** · 11 June 2009, 12:04

Originally posted by Torrango View Post

So is the key criteria here the availability of facilities for cooking in the accomodation (and equiv cost supermarkets)? For example I've often stayed in hotels (esp in the US) which have a small kitchen annex in the room, although I've never bothered using them except maybe to store stuff in the fridge.

Pretty much yes - e.g. if you stay in a B&B you do not have access to cooking facilities therefore it is reasonable to claim for the cost of a meal in the evening. If, however, you rent a house that has a kitchen and cooker there will be no additional cost to you for food as you really won't be doing anything different than you would at home.

**Torrango** · 11 June 2009, 12:17

Thanks for your replies folks. I looked up the scale rates, and details of the scheme can be found here:

http://www.hmrc.gov.uk/employers/emp...cale-rates.htm

However you will need to get a dispensation from HMRC before you can use them I think.

The rates themselves for individual cities are given here:

http://www.hmrc.gov.uk/employers/wwsr-apr09.pdf

**Bob Jones** · 12 June 2009, 22:46

We eat in order to live not in order to work but if the duties of your employment dicate that you spend more than would otherwise have been the case then the extra is allowable, BUT, calculating the amount of extra expense is unworkable in practice so where it can be demonstrated that extra has been spent HMRC will allow the full amount of the expenditure - provided it is not unduly lavish.
Scale charges are where an employer makes a payment to an employee .. are you self employed, working through your own Company or working through a brolly???

Bob

**xoggoth** · 12 June 2009, 23:03

On the other hand if alone and buying small quantities, esp. if can't cook and living on microwave meals, you are arguably spending more than you would at home with a family with a missus who can.

**Bob Jones** · 13 June 2009, 16:47

or - if you are working in Southern Ireland - as four of my clients are - the cost of self catering is greatly in excess of over here particularly as the exchange rate is so bad ... it really is looking at each case on its merits

Food expenses whilst abroad