Reply to: Quick question - expenses

[SlipTheJab]

Use a train and claim 45p per mile works as well. Except for London. Oh and the fraud part.....

The way I see it a delay on the trains eats into my personal time so I get the benefit, think of it as a dividend tax equaliser, at the end of the year it pays for 1st class travel for a few nice family trips, as for HMRC and Hammond/May claiming the delay repay refund belongs to the Ltd and should be accounted for... ***** em

[Lance]

Or on trains by claiming for delays when they occur

Use a train and claim 45p per mile works as well. Except for London. Oh and the fraud part.....

[SlipTheJab]

Except mileage. You can make a personal gain on the 45p per mile HMRC allow with no BIK.

Or on trains by claiming for delays when they occur

[Lost It]

In which case you aren't taking into account all the on-cost associated with the car, such as lost interest on capital (minimal these days but still a factor), depreciation (especially on unfancied things like X-types) replacements and so on. Yes an older car is cheaper than a new one - but not a one-year old one when the first depreciation hit and VAT has gone away - but its more than people think.

I bought a VFR brand new. It lost a grand just putting number plateson it.But I know the favoured route these days is lease anyway. Vehicle is never yours, but presumably tax deductable?

[Lost It]

it sort of was. But called a Mondeo
But not 4l so almost certainly an XJ.

Nah. X type and Mondeo share about 14% of the chassis, front ahead of bulkhead that's about it, gearboxes, brakes, a/c unit, heating and ventilation.

Xtype has different suspension, engines, transmissions (except for some of the early 5 speed manuals) the 3.0 makes 20 bhp more than the Mondeo 220 because it has superior heads and variable valves, and it has AWD to boot.

So when people say it's a Mondeo in drag, they are only slightly accurate. And to be fair I had a Mk3 Mondeo for 4 years, ran like clockwork but it was grey... Wasn't a bad car to have a Jaguar model loosely based on in real terms.

Erm. I have two XJ's, a 3.2 LWB and an aluminium bodied one with the 3.0 engine in it.

[Lost It]

They didn't make a 4L X-Type, and the X-Type wasn't out in 1999 so I imagine it is very cheap to run, what with it not existing.

Yup. S type. Not even near the X key.... S type 4.0. X type was 2001, and I still have a 3 litre ex demo one. S type cost me the grand sum of £511.00. So no real depreciation. X type was about £1200 when I bought it in 2012 so no real depreciation there either, it's worth a pile of old Beano's and a balloon on a stick in real terms but as long as I can use it to earn money?

As I've said, running a bike 780 miles a week soon kills any chance of profit, even if it does manage 55mpg.

[TheCyclingProgrammer]

All,

Can you please provide more insight into what the maximum allowable expense one can claim if working away from permanent place of residence

Contract is not IR35. I read online I can claim £5 subsistence per day does that indicate any food taking as dinner for e.g over this limit is not allowable ?

No, you can claim any actual subsistence costs you incur while travelling on business or working at a temporary workplace. There is no fixed amount, you claim what you actually spend and keep receipts as evidence. The only caveat is that subsistence costs should not be "unduly lavish" (e.g. dining out at Michelin starred restaurants).

You can also claim £5/night for incidental expenses when staying away from home overnight.

Do I require a receipt to support the £5 as well. I ask as I buy from chicken and chips food stores and this guys don't provide receipt and don't accept cards so there's no way I can evidence this.

You should generally keep evidence of any expenditure, a receipt is normally best.

Secondly I keep mileage log but hardly keep fuel receipts, do I have to keep receipts of every fuel bought as well? I'll love to hear from veterans please.

You don't need fuel receipts if you are claiming AMAPs for your mileage.

[Lance]

They didn't make a 4L X-Type, and the X-Type wasn't out in 1999 so I imagine it is very cheap to run, what with it not existing.

it sort of was. But called a Mondeo
But not 4l so almost certainly an XJ.

[Lance]

Erm... The average car costs around 60p a mile to own and run...

You CAN make money on it. But yes you're right it has to be the right car.
I broke even on a bought V8 petrol Range Rover. Lost money on a leased E-Class. And am making money on a bought diesel Discovery.

A sensible car like a £3,000 diesel Japanese car will make plenty.

I'm not sure what you class as an average car though. A 4 year old Japanese hatchback (that I'd call average) is way less then 60p per mile to run, unless you do really low mileage.

[WTFH]

They didn't make a 4L X-Type, and the X-Type wasn't out in 1999 so I imagine it is very cheap to run, what with it not existing.

Suspect he means the XJ (or one of its derivatives)

[Dylan]

They didn't make a 4L X-Type, and the X-Type wasn't out in 1999 so I imagine it is very cheap to run, what with it not existing.

[malvolio]

Only if you insist on buying cars that are new or leased.

Worked out my 4 litre 1999 X Type Jaguar even at 23mpg and insurance/maintenance costs is still realistically within the 45p per mile bit. Only just, but still in there. Actually my bike costs more to run, tyres at £240 per 6 weeks completely wreck the allowance.

In which case you aren't taking into account all the on-cost associated with the car, such as lost interest on capital (minimal these days but still a factor), depreciation (especially on unfancied things like X-types) replacements and so on. Yes an older car is cheaper than a new one - but not a one-year old one when the first depreciation hit and VAT has gone away - but its more than people think.

[PerfectStorm]

As a shop selling VATable goods (hot food) surely a receipt is a must?

[Lost It]

Erm... The average car costs around 60p a mile to own and run...

Only if you insist on buying cars that are new or leased.

Worked out my 4 litre 1999 S Type Jaguar even at 23mpg and insurance/maintenance costs is still realistically within the 45p per mile bit. Only just, but still in there. Actually my bike costs more to run, tyres at £240 per 6 weeks completely wreck the allowance.

[SueEllen]

All,

Can you please provide more insight into what the maximum allowable expense one can claim if working away from permanent place of residence

Contract is not IR35. I read online I can claim £5 subsistence per day does that indicate any food taking as dinner for e.g over this limit is not allowable ?

Do I require a receipt to support the £5 as well. I ask as I buy from chicken and chips food stores and this guys don't provide receipt and don't accept cards so there's no way I can evidence this.

Secondly I keep mileage log but hardly keep fuel receipts, do I have to keep receipts of every fuel bought as well? I'll love to hear from veterans please.

All takeaways I've asked will at least provide a handwritten receipt though I've got a non-VAT one in Chinese before. The digits were in English characters.

I've explain why I need the receipt and they are all happy to oblige.