ltd co expenses

[Gunnery Sergeant Hartman]

Sorry, wrong thread.

[Lucifer Box]

If you're working away from home and staying locally at your own expense: with friends, on a park bench, sleeping under the desk....whatever, can you claim an overnight subsistance ratefrom your own company?

How your company reimburses you and what for is a matter for you and your company. However, I assume you mean, seeing as everyone else seems to be asking at the moment, "can I claim a tax free amount for staying away from home rather than take it as a BIK hit". As always, the answer is, only if you have actually paid for overnight subsistence, can produce a receipt or other expediture document to prove it, and it fits into the usual wholly and necessarily incurred as part of doing your job rules.

Once again, you can only claim expenses you have incurred. There is no such thing as a "free expense". No proof of expenditure = tax bill and possible fine when the man from HMCR asks to see it and you can't produce one.

[Hiram King Of Tyre]

OK, so lets say it's a 200 mile return trip home, then 200*£0.25=£50. I can claim that (after the first 10k miles) but only if I actually travel home.

If I then buy a £200 sleeping bag and then spend £3 on a greasy kebab and sleep in the car, what can I pay myself without upsetting the tax man?

[Lucifer Box]

OK, so lets say it's a 200 mile return trip home, then 200*£0.25=£50. I can claim that (after the first 10k miles) but only if I actually travel home.

If I then buy a £200 sleeping bag and then spend £3 on a greasy kebab and sleep in the car, what can I pay myself without upsetting the tax man?

If the expense of the sleeping bag was incurred wholly and necessarily in the course of carrying out your employment you can, of course, claim it as a tax free expense. Be sure though, if you use it for "private mileage" (as it were) that you pay a market rate rental amount to the owner of the capital asset (YourCo). The greasy kebab, of course, would be a subsistance claim.

But again, if you cannot produce receipts for either when challenged by HMCR, you will be presented with a tax bill and possibly a modest fine also.

It is simple, you can only claim expense you have incurred. The idea of a "free claim" exists only the mind of dodgy umbrellas and naiive contractors who fell for their marketing spiel.

[Ruprect]

If I go away (abroad) on business does the £25 (equiv) limit on subsistence still exist? If I use the company debit card and keep receipts does this still go on my P11D?

Basically, can I drop £100 on dinner for myself while abroad if I happen to go somewhere expensive? Surely the amount I can claim should be governed by MyCo's policy shouldn't it?

[TheFaQQer]

If I go away (abroad) on business does the £25 (equiv) limit on subsistence still exist? If I use the company debit card and keep receipts does this still go on my P11D?

Basically, can I drop £100 on dinner for myself while abroad if I happen to go somewhere expensive? Surely the amount I can claim should be governed by MyCo's policy shouldn't it?

The amount you can claim is governed by your expenses policy.

The amount you can claim without it becoming a BIK is governed by HMRC.

[XLMonkey]

If I go away (abroad) on business does the £25 (equiv) limit on subsistence still exist? If I use the company debit card and keep receipts does this still go on my P11D?

Basically, can I drop £100 on dinner for myself while abroad if I happen to go somewhere expensive? Surely the amount I can claim should be governed by MyCo's policy shouldn't it?

Generally speaking - HMRC are lenient if you are going abroad and end up spending more than the normal guidance on meals etc. The test that the inspector uses is whether, in his/her opinion, the expense was extravagant in the context of the business purpose of the trip.

Because we live in a world where merchant bankers would treat £100 dinner as slumming it (and the tax inspectors see them, as well as you), you would be surprised just how high the expense has to be before it is considered extravagant (you would need to be talking thousands, not hundreds)

[Ruprect]

Thanks XLM. That's kind of what I figured. Not that I plan on spending that much on a meal like, just that if it does happen that I can put it through the books.

[Cooperinliverp00l]

if you try to claim your mortgage and proportion of house bills as you are using your home as your office doesn't that mean that it then has to be registered as a business address and liable for business tax. Also some mortgages don't allow you to use your house as a business.

[Epiphone]

Only question left is the definition of "reasonable". Generally, if you keep the average cost per meal below £25 the IR aren't even vaguely interested. If you're spending more than that, stop it -- you'll get fat and die before your time.

Per meal? If you're spending £25 on lunch or breakfast the IR would want to know why wouldn't they?