What Can I Include On Company Expenses, To Reduce Tax Bill?

[jamesbrown]

Just wanted to have a second opinion. I've claimed accomodation (hotel), travel and meals when I've had to stay overnight. I didn't know about the £5 "Incidental Overnight Expenses" so that's why I'm asking, if the £5 is let's say, on top of the other expenses, as it seems to be.

The purpose of the incidentals (£5 in the UK, £10 overseas) is to cover expenses that are incidental and wouldn't otherwise qualify for relief (i.e. non-allowable incidental overnight expenses). For this reason, they are in addition to any allowable expenses. For example, if you had a dispensation (soon to disappear) and were to claim benchmark scale rates, you could also claim the non-allowable incidental overnight expenses, subject to meeting the other conditions. By way of example:

https://www.gov.uk/hmrc-internal-man...anual/eim05200

Non-allowable incidental overnight expenses

Scale rate expenses payments, as described above, relate to items for which employees are entitled to tax relief under the rules in, principally, Sections 336 to 338 ITEPA 2003 (see EIM31800 onwards). However, employees who have to stay away from home overnight often incur incidental expenses for which no relief is permitted under those rules. For example, they may buy newspapers, pay for laundry or phone home. Those expenses are not incurred necessarily in performing the duties of the employment, and so do not qualify for tax relief. Employers may nevertheless reimburse such incidental expenses, free of tax and NICs, within the limits set out at EIM02710 onwards. Those reimbursements can be made in addition to any agreed scale rate payment for allowable expenses.