subsistence whilst contracting via ltd

[platforminc]

Hi,

Excuse my naive questions but I have just taken the plung onto contracting after almost 5 years of being scared of it, now when I done some short contract work for a client through an unbrella, I was allowed some amount for subsistence, mostly breakfast, lunch, dinner where applicable.

I now have a long term contract and have my own ltd, I was wondering what the rules are, what can I claim for as per lunch etc. Am I also allowed to take say my manager for lunch or a drink ?

Thanks.

[Craig@Clarity]

Assuming your working at a temporary workplace (EIM32080 - Travel expenses: travel for necessary attendance: definitions: temporary workplace: limited duration, the 24 month rule) you should be able to claim your travelling to and from work from home, subsistence and overnight stay. If you take your manager out for lunch or drink then the company can pay for it but you won't receive corporation tax relief on the expense i.e. it is not tax deductible.

Claim for what you actually spend too

[malvolio]

Hi,

Excuse my naive questions but I have just taken the plung onto contracting after almost 5 years of being scared of it, now when I done some short contract work for a client through an unbrella, I was allowed some amount for subsistence, mostly breakfast, lunch, dinner where applicable.

I now have a long term contract and have my own ltd, I was wondering what the rules are, what can I claim for as per lunch etc. Am I also allowed to take say my manager for lunch or a drink ?

Thanks.

You can't claim subsistence, since you have to eat anyway. Ignore umbrella rules, they have their own way of doing things that no longer apply to you.

You can claim expenses if you're staying away from home, equal to how ever much you spent. You can have an extra £5 a night unreceipted for small things like papers.

You don't take your boss to lunch, that's silly. If you do, it's not a business meeting so not claimable. If it is a business meeting by some miracle, you can't claim the VAT element. All in all, don't even think about it, its not worth the bother.

Go read the PCG Guide to Freelancing and the one on this site. They will answer questions you don't even know you have.

[Craig@Clarity]

You can't claim subsistence, since you have to eat anyway. Ignore umbrella rules, they have their own way of doing things that no longer apply to you.

Hi Malvolio, Are you thinking about self employment where you can't claim for subsistence. The OP suggests a Ltd company so he should be allowed under the 24 month rule and business travel for employees HM Revenue & Customs: Travel - general

[Greg@CapitalCity]

You don't take your boss to lunch, that's silly.

Taking your client to lunch sounds like a great idea to me - view it as a spot of marketing or business development - especially if the client is the main decision maker in awarding contracts to contractors The cost is claimable through a ltd company, but if its entertainment, then just not tax deductible. I think the last point is what you meant malvolio, just wanted to clarify.

[northernladuk]

Get an accoutant who will advise on all this. Sounds simple and dumb advice but read this thread and be happy your 1200 is well spent...

http://forums.contractoruk.com/accou...ent-taxes.html

You could also read the guides at the right where this is covered

You can also search the boards for the term 'expenses' or 'subsistence' and a host of interesting stuff will appear covering aspects you didn't know you could claim.

[platforminc]

mixed messages

Just to clarify, I know I can claim the cost of travel card to client site, but I read on somewhere I can claim for breakfast/lunch too, just that I have to keep receipts. I dont need to claim for hotel as the place is commutable from home.

Please clarify

[malvolio]

Just to clarify, I know I can claim the cost of travel card to client site, but I read on somewhere I can claim for breakfast/lunch too, just that I have to keep receipts. I dont need to claim for hotel as the place is commutable from home.

Please clarify

Jesus.... If it's commutable, you're not staying away, so why do you think you can claim for breakfast and lunch? Or do you only eat when you're not at home?

You can claim whatever you want, but you will have to pay tax on it as earned income. And you keep receipts for everything for six years anyway.

Stop treating YourCo as a way to fiddle the taxman and treat it as a real business, then it all makes sense. Go read the guides before you get into real trouble.

[LisaContractorUmbrella]

You can't claim subsistence, since you have to eat anyway. Ignore umbrella rules, they have their own way of doing things that no longer apply to you.

You can claim expenses if you're staying away from home, equal to how ever much you spent. You can have an extra £5 a night unreceipted for small things like papers.

You don't take your boss to lunch, that's silly. If you do, it's not a business meeting so not claimable. If it is a business meeting by some miracle, you can't claim the VAT element. All in all, don't even think about it, its not worth the bother.

you mean some umbrella companies give bad advice about subsistence don't you Mal?

As Mal says, you cannot claim expenses for meals in this situation as it is not an additional cost that you have incurred because of the contract. Presumably there is no reason why you can't eat breakfast before you leave home???

[malvolio]

you mean some umbrella companies give bad advice about subsistence don't you Mal?