Sustenance expenses

re:

I asked my accountant the very same question. I wanted to claim a flat rate of £10 per day, instead of claiming sustenance, food, drink etc. He said I should keep a week or 2's worth or receipts to prove what I was spending, as it was unreasonable to retain ALL receipts under a certain value.

has any one ever been asked to produce recipts for subsistance claims ??

Xogg, have you been reading my mind again?

I was idly wondering whatever happened to that august organisation, PIE.

Didn't they have some OU chappie as representative or something?

This was back in the 70s I think, before such things became so apparently popular.

You seem to be quite good at spotting gaps in the market

Within reason should be claimable. Just keep a note. Personally I would keep a note if I spent tuppence, just to get my tax deduction on principle, even if I had to spend five hours doing it. BASTARDS! There is also a thing called PIE. Have a look in booklet 480.

PS PIE used to stand for the Paedophile Information Exchange, whatever happened to that most worthy organisation? Curious that, was there an organisation called The Society Of Serial Killers and Rapists, or The Bank Robber's Union, if not why not?

How would you go about producing receipts for purchases made from vending machines, or from a staff canteen where receipts are not provided?

Isn't that liking asking "Hands up all those who fiddle their expenses"

If you KNOW you have to keep the receipts, make genuine claims, etc. and you don't. Not that the IR can prove it but aren't you technically committing fraud (obtaining money under false pretenses) ?

Anyway, expenses are financially neutral (normally). You spend it and you get reimbursed. Realistically you shouldn't be getting rich off it. Look at it from a business point of view, if you spent 60 percent of turn over on expenses then your business isn't very efficient. One of the common sense indicators which the IR use to claim a one man band isn't a genuine business, etc.

Personally, claim for everything you can get !
The less you give to Gordon Clown the better. He'll only waste it on "c0ndom co-ordinators" for schools.

Thanks for all the replies. Looks like I'll have to keep annoying those nice people at Pret.

Indeed. Hardly seems like a lot of hassle to chuck em in a shoe box. Do note however that for some items such as phone calls or business mileage that you cannot get a receipt for can still be claimable.

I'm with an umbrella company and they did say that you don't have to send them in but you need to keep them just incase you are investigated by the IR. I keep all my receipts even for a piece of toast in the morning costing 35p. It's a bit annoying yes and my wallet does get pretty big by the end of the week. I make a note of them once a week so it doesn't take me that long to sort them out each month. then i chuck them in a plastic wallet and forget about them.

Re: re expenses

I know of a couple of contracors that are claiming their daily allowances without receipts.

Despite trying to explain the situation to them they just say their brolley ("GIANT") has dispensation so do not need receipts.

I wonder how many actally do get caught ?

re expenses

Thanks for your reply. Yes you are right about the IRD audit. However the umbrella states they are required by IRD to audit a selection of their contractors monthly & they are obliged to inform IRD of anyone who cannot provide receipts to back their claim.

So it is quite clear what is required, I just wonder if contractors actually do adhere to these requirements or just take the risk.

Personally I would prefer a lower daily limit (agreed by IRD) that never requires receipts to back up a claim, i.e. £10 a day no receipts ever & receipts required for $15 or £21 a day etc.

No, you need to keep them for the IR.

Basically your umbrella have probably got a "dispensation" which means that the IR allow them to trust that your expense claims are OK without them personally seeing the receipts.

However, it does not mean that you don't have to have receipts - your expense claims still have to be legitimate, and in the case of an IR inquiry, they may ask you to show the receipts to prove all claims were sound.

hth
RL

I am sure people are bored with expenses, so sorry however.....

I have been contracting through an umbrella for a couple of months. While my company does not require me to send sustenance receipts they do specify they should be kept by myself and I need to produce them if requested.

This is such a hassle & I am wondering if other contractors actually do this??

Getting receipts for every latte and sandwich is crazy! My local Pret can't even print receipts from all tills. Not to mention adding them up every month etc...

Am I being too honest and naive?