I am currently working as a contractor through an umbrella company.
I work monday to friday away from home.
I travel to work monday morning, which takes about 2 hours, monday night to thursday I am in a B and B and Friday I finish work and travel back home.
My umbrella company gives me 3 things as expenses,
1. Mileage - Which they calculate at the government rate.
2. Accomodation - For which I provide a receipt
3. Subsistence - Worked out on nights away and travel.
I am thinking that there could be an issue with No.3 as I dont need to provide receipts to the umbrella to be able to claim the expense. ( I do however keep receipts for my own records)
I e-mailed the umbrella about this, and am no further forward.... here is a copy and paste of that e-mail to try and clarify. I would be grateful if anyone could clarify whether my concerns in the e-mail are correct and also whether or not what the umbrella company are saying is true.
From: *******************
Sent: 17 June 2009 13:54
To: **********
Subject: Subsistence Allowance.
Hi ****
I have a query regarding the subsistence allowance paid to me.
I assume that this allowance forms part of a tax free part of my pay. Is the allowance that is outlined on your guide to expenses sheet a maximum limit rather than an amount I can automatically claim?
For example:
On Monday I work more than 8 hours and also travel over 2 hours to work.
Tuesday to Thursday I am away from home for the whole 24 hours, working over 8 hours.
On Friday I work less than 8 hours but then take over 2 hours to travel home.
From the guide to expenses sheet I calcluate the following:
Monday £15
Tuesday £22.50
Wednesday £22.50
Thursday £22.50
Friday £15
Total £97.50
I realise I do not have to submit receipts to yourself to claim this amount. However I am worried that the amounts shown are upper limits rather than what I can actually claim. So if for example I spend £50 between Monday and Friday on food am I right in assuming that I can only claim that amount as expenses rather than the full £97.50.
If this is the case, how do I submit the actual amount spent as expenses rather than claiming the full limit each day. As I dont wish to be investigated by HMRC in the future and be landed with an unexpected bill.
If what I have asked does turn out to be true, how does this tie in with my accomodation, I am in a B & B, and as such I have my breakfast there 4 days a week. Would this affect the amount I can claim for subsistence?
Thanks
****
From: ****************
To: *****************
Date: Wed, 17 Jun 2009 14:20:27 +0100
Subject: RE: Subsistence Allowance.
Hi *********,
The rates of subsistence we allow for you to claim are based on the dispensation figures which have been discussed and agreed with the Inland Revenue.
You may or may not spend over and above the figure specified however as an employee of ******** you are entitled to claim the full amount.
With you staying away from home for certain days per week it is generally acceptable for you to be spending more money – so the figure increases to £22.50.
Kind regards,
*****
From: ********
Sent: 17 June 2009 15:57
To: ************
Subject: RE: Subsistence Allowance.
Hi *******
Thanks for your response.
So in the event of investigation by HMRC if I have been claiming for £22.50 for subsistence, and can only produce say ten pound worth of receipts, what would happen?
Or are you saying that at that amount they would not investigate as they themselves have set that as a limit for employees of **********?
Cheers
*****
Hi *****
As part of the dispensation agreement with the Revenue the allowable subsistence is non-receipted, so if you were to have an audit like we did last year the Revenue would not ask, or even be able to ask for receipted proof for the subsistence as covered under the dispensation.
If you were to be picked by the Revenue they would ask for receipts for your Bed and Breakfast cost’s only, which off course we have.
Thanks
Kind regards,
*********
Accounts Manager
New Fax Number: *******
I work monday to friday away from home.
I travel to work monday morning, which takes about 2 hours, monday night to thursday I am in a B and B and Friday I finish work and travel back home.
My umbrella company gives me 3 things as expenses,
1. Mileage - Which they calculate at the government rate.
2. Accomodation - For which I provide a receipt
3. Subsistence - Worked out on nights away and travel.
I am thinking that there could be an issue with No.3 as I dont need to provide receipts to the umbrella to be able to claim the expense. ( I do however keep receipts for my own records)
I e-mailed the umbrella about this, and am no further forward.... here is a copy and paste of that e-mail to try and clarify. I would be grateful if anyone could clarify whether my concerns in the e-mail are correct and also whether or not what the umbrella company are saying is true.
From: *******************
Sent: 17 June 2009 13:54
To: **********
Subject: Subsistence Allowance.
Hi ****
I have a query regarding the subsistence allowance paid to me.
I assume that this allowance forms part of a tax free part of my pay. Is the allowance that is outlined on your guide to expenses sheet a maximum limit rather than an amount I can automatically claim?
For example:
On Monday I work more than 8 hours and also travel over 2 hours to work.
Tuesday to Thursday I am away from home for the whole 24 hours, working over 8 hours.
On Friday I work less than 8 hours but then take over 2 hours to travel home.
From the guide to expenses sheet I calcluate the following:
Monday £15
Tuesday £22.50
Wednesday £22.50
Thursday £22.50
Friday £15
Total £97.50
I realise I do not have to submit receipts to yourself to claim this amount. However I am worried that the amounts shown are upper limits rather than what I can actually claim. So if for example I spend £50 between Monday and Friday on food am I right in assuming that I can only claim that amount as expenses rather than the full £97.50.
If this is the case, how do I submit the actual amount spent as expenses rather than claiming the full limit each day. As I dont wish to be investigated by HMRC in the future and be landed with an unexpected bill.
If what I have asked does turn out to be true, how does this tie in with my accomodation, I am in a B & B, and as such I have my breakfast there 4 days a week. Would this affect the amount I can claim for subsistence?
Thanks
****
From: ****************
To: *****************
Date: Wed, 17 Jun 2009 14:20:27 +0100
Subject: RE: Subsistence Allowance.
Hi *********,
The rates of subsistence we allow for you to claim are based on the dispensation figures which have been discussed and agreed with the Inland Revenue.
You may or may not spend over and above the figure specified however as an employee of ******** you are entitled to claim the full amount.
With you staying away from home for certain days per week it is generally acceptable for you to be spending more money – so the figure increases to £22.50.
Kind regards,
*****
From: ********
Sent: 17 June 2009 15:57
To: ************
Subject: RE: Subsistence Allowance.
Hi *******
Thanks for your response.
So in the event of investigation by HMRC if I have been claiming for £22.50 for subsistence, and can only produce say ten pound worth of receipts, what would happen?
Or are you saying that at that amount they would not investigate as they themselves have set that as a limit for employees of **********?
Cheers
*****
Hi *****
As part of the dispensation agreement with the Revenue the allowable subsistence is non-receipted, so if you were to have an audit like we did last year the Revenue would not ask, or even be able to ask for receipted proof for the subsistence as covered under the dispensation.
If you were to be picked by the Revenue they would ask for receipts for your Bed and Breakfast cost’s only, which off course we have.
Thanks
Kind regards,
*********
Accounts Manager
New Fax Number: *******
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