HMRC scale rates?

[Fred Bloggs]

I can't ever recall this topic being discussed seriously here. Does anyone here claim the HMRC scale rates that were announced in April 2009 for meals while away from home? It would certainly simplify my weekly expenses accounts if I claimed scale rates for meals while away from home during the week.

[Nicely Nicely]

Would you be referring to this?

Both my previous accountant and my current brolly tell me that you have to have receipts for everything you claim, including meals.

The 'scale rates' apply to employers who have a 'dispensation' with HMRC. It means they can pay up to those amounts without worrying about HMRC expecting them to charge PAYE & NI. The dispensation merely reduces the checking & paperwork burden for those employers big enough to get agreement for such a dispensation.

It does not apply to employees. You still need receipts. As in: "This means that employees who do not buy a meal or who take a packed lunch from home are not entitled to a tax and NICs free payment."

So it is not a blanket "You as an employee can claim this every day" it is a "You as an employer may apply for a dispensation that will mean you will have to formally impose rules and make those rules known, and conduct random sample checking to ensure the rules are being adhered to, and we will then not go chasing you for proof of PAYE & NI on those expenses provided they are below these limits."

Essentially, it is a benefit provided by our lovely government to large companies to ease the burden of paperwork. Little LtdCos can go f*** themselves, as usual.

[Fred Bloggs]

Yes, I'm referring to "Benchmark scale rates for day subsistence" from the document you liked to, April 2009. My Ltd Co has an expenses dispensation in place already and has done for the last 5 years. It just seems simpler to use benchmark scale rates.

[Olly]

I actually wrote to HMRC about this...

an interesting quote:

"Please bear in mind that the whole purpose of scale rate expenses payments is to lessen the burden on both employers and employees for actual expenses incurred when overseas travel/work is involved. It is not intended to provide any element of profit to employees who travel overseas to work for you. "

She also said that if the company was aware expenses being claimed were in excess of that being spent then it was a no no (as you'd expect)

Off the record(ish) on the phone they said it's something large companies can use, but in a one man band then the director has accute knowledge of what the expenses are and therfore could not use (and benefit financially) from the scheme,

[Fred Bloggs]

Thanks.