Expenses without receipts - how far back can I claim?

[Datalink]

Contractor Expenses Guide - What Can I Claim As a Contractor With My Own Limited Company

Key bit:

What is a valid business expense?

Meal allowance

You can claim actual meal costs whilst you are working at a remote site, away from your normal place of work, or when staying away from home overnight, but daily, round sum claims for meals are not permitted.

For me it's an odd one. I'm contracted to work in location A, but I actually work in location B, this is due to the clients security requirements. But I did ask my accountant and I was told it's not allowable.

[SandyD]

As the title says, do bank statements acts as proof of receipt?

My accountant says this is and OK proof, I pay for my lunches and anything business related with my business card, this way at the end of each month expenses are clear in the business account statement.
Its not ideal as items are not shown, but its arguable with the HMRC, so for example a payment shown on your statement to a company canteen or EAT or starbucks, Pret is going to be a payment for food/coffee, not personal shopping etc, so easy to proof. However, if you buy your lunch from a supermarket, ensure that that supermarket does have a canteen. If the supermarket branch (which will show on the statement) doesn't have a canteen then you risk it a bit (you are still allowed to claim sandwiches bought from supermarkets, but then you need the receipts to proof)

Anyway, I don't really claim it on a daily basis as I prefer to take my own lunch, but if I didn't prepare my lunch or staying away from home, the I do pay for my lunch/coffee etc from the company account direct.

[Wanderer]

For me it's an odd one. I'm contracted to work in location A, but I actually work in location B, this is due to the clients security requirements. But I did ask my accountant and I was told it's not allowable.

Do they allow for the cost of travel to location B?

[psychocandy]

I think claiming for lunch is taking the **** (no offence to anyone!). You have to eat wherever you are, on contract or not, so IMO it's not allowable and I'm fairly certain my accountant told me not to bother. You certainly wouldn't expect your permanent employer to pay for your lunch unless away for the day on business.

I am away on business for the day. My office is my home address - I'm at a client site.
Neither does your employer pay you expenses for driving to the office but we claim mileage.

Hang on now - its a bit different not being a permie ain't it? ;-)

[kingcook]

Contractor Expenses Guide - What Can I Claim As a Contractor With My Own Limited Company

Key bit:

For me it's an odd one. I'm contracted to work in location A, but I actually work in location B, this is due to the clients security requirements. But I did ask my accountant and I was told it's not allowable.

Your home is your normal place of work. A client site is a temporary/remote place of work. While you're working on client site, you're entitled to claim lunch expenses.

You can also claim evening meal expenses if staying away overnight.

[malvolio]

While you're working on client site, you're entitled to claim lunch expenses.

So you don't normally eat lunch at work then?

I really CBA to dig out all the details yet again to prove you wrong, but for 20% of £5 - a whole £200 a year - is it really worth the hassle?

[Wanderer]

So you don't normally eat lunch at work then?

You know the answer to that! When a contractor is working at the normal place of work (home), they would have a cooked meal made out of food available at home. When they work away from the normal workplace they may incur an additional expense which the company reimburses. This is allowable against tax (24 month rule not withstanding).

A higher rate tax payer can get tax relief worth about 40% of whatever they claim in expenses.

Contract/perm/whatever, I typically spend over £2,000 per year on lunches so that's at least £800 extra in my pocket. Worth claiming? Oh yes. If someone was very frugal then maybe not.

[northernladuk]

Can I ask a question here... This £5 allowance.... Can you only claim what you spend or can you put the whole rate in even if you bought a £1.99 sarnie?

[moggy]

Can I ask a question here... This £5 allowance.... Can you only claim what you spend or can you put the whole rate in even if you bought a £1.99 sarnie?

have you done a search and looked to the links?

[Wanderer]

Can I ask a question here... This £5 allowance.... Can you only claim what you spend or can you put the whole rate in even if you bought a £1.99 sarnie?

Your company can reimburse the actual amount spent unless your company/umbrella has a dispensation in which case they can pay you any amount up to the amount of the dispensation.

So if your umbrella/company has a dispensation for £5 for lunch and you spend any amount (say £1.99) they can (at their own discretion) pay you up to £5.


There is a lot of FUD surrounding this one and a lot of the guidance isn't that clear. Also, some unscrupulous umbrella companies may abuse their dispensations by paying the full amount without really worrying too much about an actual expense being incurred so there is a lot of angst about this from the more straight up umbrella companies. HMRC don't like it and have been rattling their sabres about it for years but they don't stop it either.