Subsistence - Exactly what can be claimed?

[SueEllen]

As far as I am aware, you can claim for accommodation if you already own a property, or rent one. Failing this, I don't think you can claim. This also means that you can instead claim for your travel expenses to and from the place of business. If I am wrong, someone else will be along shortly to kick my ar$e.

Yep but again it's not that simple.

As you said you need to have a permanent place of residence (somewhere you own or rent) that is different from the accommodation you claim rent for to live in near the contract during the working week.

However if you work at home, whether it's rented or owned, you can claim other expenses. The standard amount you can claim for doing a little amount of work at home with no questions asked is £4. If it costs you more than that to work at home due to working there the majority of the time talk to your accountant.

[tranceporter]

Yep but again it's not that simple.

As you said you need to have a permanent place of residence (somewhere you own or rent) that is different from the accommodation you claim rent for to live in near the contract during the working week.

However if you work at home, whether it's rented or owned, you can claim other expenses. The standard amount you can claim for doing a little amount of work at home with no questions asked is £4. If it costs you more than that to work at home due to working there the majority of the time talk to your accountant.

Interesting. Some new info. Much obliged!

[LisaContractorUmbrella]

<cough>LisaContractorUmbrella<cough>

Ahh bless him - you have to expect a bit of brain fog when you're learning about expenses for the first time

[Jay Cartay]

Ahh bless him - you have to expect a bit of brain fog when you're learning about expenses for the first time

Indeed! Apologies, I am just trying to get to grips with everything!

[LisaContractorUmbrella]

Indeed! Apologies, I am just trying to get to grips with everything!

Don't you worry - there's a lot to get your head round when you first start contracting

[CloudWalker]

Can you claim for Food & Drink ? e.g (breakfast / Lunch /Diner ) if working over your normal hours ?
I remember I could do this under my old umbrella company up to £20 pd

[northernladuk]

Can you claim for Food & Drink ? e.g (breakfast / Lunch /Diner ) if working over your normal hours ?
I remember I could do this under my old umbrella company up to £20 pd

Dunno what the umbrella rules are but here is the HMRC manual giving some guidance...

EIM05231 - Employment income: scale rate expenses: subsistence expenses: table of benchmark scale rates

Bearing in mind you are only getting 20% discount on this as it will come out of your pocket in the end. Doesn't really make it worth taking the piss that could lead HMRC to look at everything else in a lot of detail.

[jamesbrown]

To answer your specific question about "subsistence", you have a couple of options for a Ltd. You can use the HMRC benchmark "scale" rates (which vary by precise location and define the limits of what you can claim: for UK rates, EIM05231 - Employment income: scale rate expenses: subsistence expenses: table of benchmark scale rates) or you can stick to a fixed amount for unreceipted "incidentals" for an overnight stay (£5 in the UK and £10 overseas). If you're going to use the scale rates, apply to HMRC for a dispensation first to avoid problems later on:

https://online.hmrc.gov.uk/shortform...ww.hmrc.gov.uk

[jamesbrown]

Overseas:

Employment income: scale rate expenses payments: accommodation and subsistence payments to employees travelling outside the UK

[Wanderer]

To answer your specific question about "subsistence", you have a couple of options for a Ltd. You can use the HMRC benchmark "scale" rates (which vary by precise location and define the limits of what you can claim: for UK rates, EIM05231 - Employment income: scale rate expenses: subsistence expenses: table of benchmark scale rates)

Also remember that contrary to what many people would have us believe, you can actually pay yourself these round sum amounts for subsistence provided you incur some cost (however small is not relevant).