Expenses question

[helen7]

Hi,

Quick question regarding expenses. I have searched to forum and each thread seems to contradict the other.


My client has asked me to go to Texas for a week. They are paying me a flat rate to cover the expenses so I have to organise my own flights, hotel, meals etc...

So, my question is what can I legitimately put through my limited company as expenses?

Flights and Hotel, I assume no problem.

1. Evening meal? (Since I will have no catering facilities). Is there a limit on how much can be spent (I don't eat cheap fast food).
2. Taxi's to and from office/hotel
3. Laundry costs at hotel

Thanks

[Notascooby]

If it's a business trip and wholly and exclusively a business trip you can expense everything. Just remember this doesn't make it free, just tax deductible.

*Do I get my NLUK badge now?

[Pondlife]

As long as you don't take the p*ss you should be fine for all travel, meals & accommodation costs.

It's questionable about whether Laundry, In-room movies or other entertainment are expensable IMVHO.

[philip@wellwoodhoyle]

Flights, hotel, taxis, evening meals etc are all fine. Also fine would be breakfasts and lunches and drinks etc through the day (not alcohol unless as part of a meal).

Specific costs of laundry isn't allowable, nor are costs of telephone calls home, newspapers etc., BUT, HMRC allow a daily (nightly) rate of £10 (abroad rate) to cover "incidentals" such as these:-

Employment income: incidental overnight expenses: the permitted amount

[stek]

This is the HMRC benchmark rates for Houston, formatting screwed a bit...:

http://www.hmrc.gov.uk/employers/wwsr-bench-2012.pdf

UNITED STATES OF AMERICA Houston
Currency:
Room rate:
Breakfast: 13.5 Lunch: 20.0
Over 5 hours: Over 10 hours: 24 hour rate:
23.0
64.5
85.0 + room rate
110.0
USD (unless stated otherwise)
UNITED STATES OF AMERICA
Dinner:
Other:
Drinks:
Hotel to office: Total residual:
Currency:
39.0 0.0 5.5 7.0 85.0

[northernladuk]

Sounds odd? So they are giving you a fixed sum to go and it's up to you what you spend out of that? Never heard of that before, particularly when the flight costs can vary wildly depending on when you go, who with and what class. Hotels and meals I guess I couldn't understand but never seen that cover flights as well.

[Wanderer]

This is the HMRC benchmark rates for Houston

So the business person could stay in a hotel and claim US$195/day as expenses regardless of the actual expenditure?

[jamesbrown]

So the business person could stay in a hotel and claim US$195/day as expenses regardless of the actual expenditure?

My understanding is that you have two options for subsistence. One is to use the standard HMRC international rate of £10 per day for incidentals. The other is to claim the daily subsistence allowance ($85 + hotel) quoted above for that location. However, in order to do the latter, I believe you need at least one receipt as proof of expenditure each day, aside from the hotel cost.

[stek]

Expenses question

My understanding is that you have two options for subsistence. One is to use the standard HMRC international rate of £10 per day for incidentals. The other is to claim the daily subsistence allowance ($85 + hotel) quoted above for that location. However, in order to do the latter, I believe you need at least one receipt as proof of expenditure each day, aside from the hotel cost.

No receipts are required.

[jamesbrown]

No receipts are required.

Interesting, thanks. It's a while since I spoke to my accountant on this and I may have misunderstood the need for proof of incurring subsistence, in order to justify the subsistence portion of the benchmark rate. In the past I've just claimed for the actual (receipted) costs plus the £10 for incidentals on international trips, but I plan to use the benchmark rate in future