Subsistence allowance

[The Spartan]

Shocking!!!

You can't claim set amounts ever, unless you've actually spent that amount. Always keep your receipts regardless of what you're told.

[The Spartan]

As Malvolia says, I've been claiming £5 Personal Incidental Expenses (or PIE) since I started contracting. Had one investigation into expenses in all that time and they were fine with it.

So you can legitimately claim £5 tax free for every night you're working away from home in the UK, or £10 outside the UK, with no need to keep receipts.

I thought you could only claim this if you spent it?

[malvolio]

I thought you could only claim this if you spent it?

True, but HMRC take the pragmatic view that you're going to spend something on things like papers and a beer when away from home that you wouldn't normally spend. Like FRS, it's saves more on paperwork than it costs.

And it's not £5 a day, it's £5 a day you won't pay tax on. You only actually get back around £1.50

[TheDragon]

True, but HMRC take the pragmatic view that you're going to spend something on things like papers and a beer when away from home that you wouldn't normally spend. Like FRS, it's saves more on paperwork than it costs.

And it's not £5 a day, it's £5 a day you won't pay tax on. You only actually get back around £1.50

As I said Mal, it's all sorted out now. I've provided a journal of expenses.The brolly mislead me, but all resolved now and will keep all receipts from now on.

[gingerjedi]

it's £5 a day you won't pay tax on. You only actually get back around £1.50

It still amazes me that some people don't get this, they go out every day to buy lunch and posh coffee as if it's free.

[The Spartan]

It still amazes me that some people don't get this, they go out every day to buy lunch and posh coffee as if it's free.

Maybe it's a transitional thing, say as a permie you do this on a daily basis it's money that you spend out of your wages. Whereas at least as contractor it gets expensed back to you so at least you receive some benefit in part.

[Old Greg]

I think you'll find a vast majority of IT contractors claim legitimate expenses as ultimately the buck stops with the claimant not the advisor.

Why do people come into contracting thinking it's a big fiddle? It must be the small pond permy mentality that can't grasp a different way of working.

Contracting is a big fiddle. The small pond permy mentality holds that it is an endless series of very small fiddles.