Claiming for food

[LisaContractorUmbrella]

The article you refer to is talking about scale rate subsistence when the MP's are away from home overnight; anyone is entitled to claim for the cost of meals when they are working away from home. Scale rates were actually introduced by HMR&C themselves as a way to save time and money - staff that were on detached duty i.e. away from their normal place of work were entitled to claim a fixed amount (used to be about a fiver) if they incurred an additional cost wholly because they were away from their normal office. I believe that claiming the scale rate payment when there was no additional cost to the employee was a disciplinary offence.

Therefore, the rules that are applied to HMR&C have also since been applied to other businesses but the basic premise remains the same - if there is no additional cost to you then you cannot claim an expense.

[mikedarv]

Did your umbrella company tell you this? If so you need a new umbrella company.

There are very strict rules governing when you can claim for meals and it would be very unlikely that you could legitimately claim for 3 meals. The expenses would be processed as a tax benefit if they were allowable which would mean that you would get the tax relief on the amount claimed rather than it be reimbursed in full.

That’s right, sorry yes misread the policy, “we will then reimburse you” sent me down the wrong path.

If I was to claim £100 week non-billable expenses on travel/food, would the tax relief add up to this amount? Just trying to work out what % of money I spend I will ultimately recoup by paying less tax..on average.

[LisaContractorUmbrella]

That’s right, sorry yes misread the policy, “we will then reimburse you” sent me down the wrong path.

If I was to claim £100 week non-billable expenses on travel/food, would the tax relief add up to this amount? Just trying to work out what % of money I spend I will ultimately recoup by paying less tax..on average.

That's not really the question. The question is will you incur costs of £100 which will represent allowable expenses - what does that £100 represent?

[mikedarv]

That's not really the question. The question is will you incur costs of £100 which will represent allowable expenses - what does that £100 represent?

The daily food allowance of £16 plus £4 travel, so £100 a week expenses.

Just not sure if I would be better off making use of the expenses or not. Without expensing food/travel I’d be spending £30 a week.

I’ll probably understand it all when I see my first payslip, only started on Monday!

[LisaContractorUmbrella]

The daily food allowance of £16 plus £4 travel, so £100 a week expenses.

Just not sure if I would be better off making use of the expenses or not. Without expensing food/travel I’d be spending £30 a week.

I’ll probably understand it all when I see my first payslip, only started on Monday!

You cannot claim £100 per week expenses when you are only spending £30 - HMR&C gets extremely upset about that sort of thing

[mikedarv]

You cannot claim £100 per week expenses when you are only spending £30 - HMR&C gets extremely upset about that sort of thing

Sorry didn't explain it very well.

I can buy food whilst at work under the allowance and expense it. Or I can just bring food from home and not expense it. If I was to bring food from home I might still be saving more money than if I was buying then expensing food.

[ASB]

Sorry didn't explain it very well.

I can buy food whilst at work under the allowance and expense it. Or I can just bring food from home and not expense it. If I was to bring food from home I might still be saving more money than if I was buying then expensing food.

I see where you are going. So lets assume the claims will be OK.

So, you buy sandwiches etc whatever, and these happen to cost you £20 per day. £100 per week. If the claims are OK then this will come off your gross pay.

So, the question is, what would that £100 yield me net. That depends upon whether you are a normal or higher rate tax payer. However, broadly it is approximately one of the following:-

Normal Rate:

£100 less £12 ER's NI = 88 less 10.50 ee's NI less 17.50 tax = £60 net income

40% rate

£100 less £12 ER's NI = 88 less 2% NI £2.00 less 35.20 tax = £50 net income.

So, the question for you is whether you could use less than £50 of net income to provide your meals by doing it yourself.

[northernladuk]

I see where you are going. So lets assume the claims will be OK.

So, you buy sandwiches etc whatever, and these happen to cost you £20 per day. £100 per week. If the claims are OK then this will come off your gross pay.

I know as a contractor we are expected to be flash and don't somethings on the cheap but £20 for sarnies!! Caviar butty anyone?

[ASB]

I know as a contractor we are expected to be flash and don't somethings on the cheap but £20 for sarnies!! Caviar butty anyone?

I normally have my man pick me up a couple of these:

£85 for a sandwich | Metro.co.uk

[northernladuk]

I normally have my man pick me up a couple of these:

£85 for a sandwich | Metro.co.uk

You, sir, are the man! I bow to your tastes.