Reply to: Subsistence claim for lunch

[Waldorf]

I no longer have my own company (don't worry I am thinking of starting one again, been conned with a big umbrella!) when I did i was stung by the Revenue for claiming lunches, would not do that again. I want to claim what I can but I do not want hassle from the Revenue from dodgy schemes.

Surely the best way to prove you have sepnt money is with a receipt? keeping cheque stubs etc is just not practical.

[THEPUMA]

I disagree. If the travel is allowable then that any associated subsistence (and accommodation) is allowable. All lunches whilst at a client's site, coffees, etc are tax-deductible if the travel to get you there was.

In fact there was a case where a guy made himself sandwiches, took them to work and claimed them as an expense. This was not allowable but the point was made that had he gone out at lunchtime and bought the ingredients it would have been.

Also, there is nothing in tax legislation that says you have to keep a receipt in order to claim an expense (despite what HMRC might tell you). Clearly it is preferable to keep receipts where possible but I encourage my clients to maintain a record of all subsistence expenses incurred, irrespective of whether or not it has been possible to get a receipt.

[wantacontract]

lunch

yeah, i use to claim lunch religiously when i was a permie...would always spend upto £10......or a bit over...

now as a contractor, once I found out its easier not to claim because of all the hassle...I try to have cheapo lunches!!!!

[Mustang]

Hmmm.......had better stop claiming for my lunches then!!

[Nixon Williams]

Does anyone actually bother claiming for this (daily)?

I can't be arsed with the paperwork, receipts, etc. so have never bothered.

Some do, it depends if they can be bothered!

Alan

[IanIan]

My umbrella said I could claim breakfast if I eat it before 7.30am. (I commute into London.)

[Goya]

The subsistence allowance of £5/day (£10/day if overseas) is for minor incidentals, such as papers, laundry etc, however what you spend it on is your choice.

Alan

Does anyone actually bother claiming for this (daily)?

I can't be arsed with the paperwork, receipts, etc. so have never bothered.

[Nixon Williams]

That's surely the overnight stay incidental expenses. I understood (this is probably going on what Parasol said when I was with them), that as long as you worked more than 5 hours a day (including travelling) you could claim £5 per day for substinence (but you needed a receipt), rising to £15 per day if you worked and travelled more than 11 hours in a day. On top of that, you could claim £5 for incidentals if staying overnight without any receipts.

I've never bothered with lunch because getting receipts for a sandwich is a pain, but I did used to claim for Little Chef meals on the way home from time to time. So presumably you'd say that's not allowed either as I wasn't staying away?

The flat rate subsistence allowance is the £5/day (£10/day overseas) can be claimed, if away from home on business.

The other allowances were presumably agreed with the Revenue, they are not flat rate allowances but what can be claimed upto this sum without having to report it to the Revenue. Receipts should be obtained and kept. So if you incurred the cost and it fell within the dispensation guideline then you should be Ok to claim and it not reported on the P11d.

Alan

[VectraMan]

The subsistence allowance of £5/day (£10/day if overseas) is for minor incidentals, such as papers, laundry etc, however what you spend it on is your choice.

Alan

That's surely the overnight stay incidental expenses. I understood (this is probably going on what Parasol said when I was with them), that as long as you worked more than 5 hours a day (including travelling) you could claim £5 per day for substinence (but you needed a receipt), rising to £15 per day if you worked and travelled more than 11 hours in a day. On top of that, you could claim £5 for incidentals if staying overnight without any receipts.

I've never bothered with lunch because getting receipts for a sandwich is a pain, but I did used to claim for Little Chef meals on the way home from time to time. So presumably you'd say that's not allowed either as I wasn't staying away?

[malvolio]

This sounds like entertaining, whilst the company can pay for this, the company does not get tax relief on the cost.

Alan

Quite true. It is clearly marked up in the data my accountants use, and I rely on them to make the appropriate deductions (or not) for CT - as a percentage of annual profit it is usually vanishingly small.

[Nixon Williams]

The advantage of being a team leader - while I never bother claiming for my usual sarnies at the desk, every week or so I would take the team out for a briefing away from the office and naturally lunch would be provided...

This sounds like entertaining, whilst the company can pay for this, the company does not get tax relief on the cost.

Alan

[malvolio]

Long time lurker, first post

My accountant suggested that as you would have lunch anyway it is a bit dubious to claim it as being necessary as part of your work for the client.

The advantage of being a team leader - while I never bother claiming for my usual sarnies at the desk, every week or so I would take the team out for a briefing away from the office and naturally lunch would be provided...

[Nixon Williams]

I've never bothered myself, but I understood substinence covered lunch?

The subsistence allowance of £5/day (£10/day if overseas) is for minor incidentals, such as papers, laundry etc, however what you spend it on is your choice.

Alan

[spoons]

But a different view might be when sent away from normal place then employer will stand lunch. Since the client site is not a normal place of work then it becomes claimable.

I have generally claimed and got through investigation, however as Alan said it is thin ice.

Long time lurker, first post

My accountant suggested that as you would have lunch anyway it is a bit dubious to claim it as being necessary as part of your work for the client.

[gravesendboy]

Subsistence

My expenses have been checked by the Revenue and they did'nt have any problem in me claiming lunch when I was working away from home
He was an extremely helpful chap and when I queried how some of these umbrella companies can get away 'murder' , he calmy said that 'their turn would come shortly!!
In particular I queried how these umbrella companies were offering tax breaks for contractors who were away from their home for more than 10 hours being able to claim up to £30 a day ( obviously no receipts) , the inspector calmly said 'they should'nt be'.. no such allowances would be given