Reply to: Daily Subsistence

[Hex]

So it's impossible to work out the extra cost but if you can do the impossible HMR&C will allow it as an expense - sounds about right

I think it is more that if you can work out that there is an extra cost but you can't exactly quantify it then you can claim the total. If you buy a sandwich for £3.50 I think it's fairly clear that there is an extra cost over what it would have cost for materials to make this at home. How much extra? £2.50? £2.00? Just claim the £3.50.

[LisaContractorUmbrella]

You can claim for meals when away on business to a temporary workplace if the cost of the meal is more than it would cost you normally. See this article:

Meal Allowances | Internet Taxation Ltd

Here's a relevant quote:

It is the extra expense that is allowable but in practice it is not possible to identify the amount of extra expense so where it can be identified that extra expense has been incurred HMRC will allow the full amount of the expense.

So it's impossible to work out the extra cost but if you can do the impossible HMR&C will allow it as an expense - sounds about right

[Hex]

You can claim for meals when away on business to a temporary workplace if the cost of the meal is more than it would cost you normally. See this article:

Meal Allowances | Internet Taxation Ltd

Here's a relevant quote:

It is the extra expense that is allowable but in practice it is not possible to identify the amount of extra expense so where it can be identified that extra expense has been incurred HMRC will allow the full amount of the expense.

[northernladuk]

Ah I see, my use of the wholly and exclusively is the issue. Well the cost is allowed as a company expense is what I should have said.

Well it is pretty important.

[JamJarST]

Indeed but A) Nowhere does it mention food being wholly and exclusively which was your statment verbatim.
B) the £5 is towards things like laundry. That does not make laundry wholly and exclusive either.

All they are doing is acknowleding there is extra cost on top of what you normally pay so give you a little bit to cover.

Ah I see, my use of the wholly and exclusively is the issue. Well the cost is allowed as a company expense is what I should have said.

[northernladuk]

I see your wrong and raise you:
HM Revenue & Customs: Incidental overnight expenses
The company is allowed to pay the expense and claim it as a company expense, but there is a BIC implication if it exceeds £5 (10 if overseas travel).

Indeed but A) Nowhere does it mention food being wholly and exclusively which was your statment verbatim.
B) the £5 is towards things like laundry. That does not make laundry wholly and exclusive either.

All they are doing is acknowleding there is extra cost on top of what you normally pay so give you a little bit to cover.

[JamJarST]

Which is ALSO completely wrong. You need to eat and drink to live, not just to work. The only difference is you can claim a little more as it is more expensive.

I see your wrong and raise you:
HM Revenue & Customs: Incidental overnight expenses
The company is allowed to pay the expense and claim it as a company expense, but there is a BIC implication if it exceeds £5 (10 if overseas travel).

[northernladuk]

In exactly the same way that meals are wholly and exclusively, even though you would eat if you are at home.

Which is ALSO completely wrong. You need to eat and drink to live, not just to work. The only difference is you can claim a little more as it is more expensive.

[LisaContractorUmbrella]

In exactly the same way that meals are wholly and exclusively, even though you would eat if you are at home.

No way Wholly & exclusively: expenditure having an intrinsic duality of purpose: food and drink

[JamJarST]

How can laundry be wholly and exclusive? You would wash your stuff if you were at home which would cost you (electric/water) so no difference (except more expensive) abroad.

The comment that caught my eye was his comment about years. This would be capped by the 24 month rule surely?

In exactly the same way that meals are wholly and exclusively, even though you would eat if you are at home.

[Boo]

There's a flat £5 a night you can claim when you're away from home in the UK, and that's supposed to cover laundry, morning paper etc. Abroad I believe it's £10 a night. Maybe HMRC think washing is more expensive overseas.

You can indeed claim £10 per night when you are posted abroad but your company is also entitled to compensate you at scale rates for expenses without incurring a tax liability. Scale rates depend upon which country you are based in but with a modicum of care a small profit can be made. HMRC publishes scale rates every year and they can be downloaded from this page on their site.

Boo

[Clare@InTouch]

There's a flat £5 a night you can claim when you're away from home in the UK, and that's supposed to cover laundry, morning paper etc. Abroad I believe it's £10 a night. Maybe HMRC think washing is more expensive overseas.

[northernladuk]

Are you sure about that? I would argue that under some instances you could claim laudry costs as wholly and exclusively. For instance I did a 2 month stint in China (granted I was a permie), I couldn't take 2 months worth of clothes so I had get them washed in the hotel. That to me was wholly and exclusively due to the travel away from home, just like the meals you can claim.

How can laundry be wholly and exclusive? You would wash your stuff if you were at home which would cost you (electric/water) so no difference (except more expensive) abroad.

The comment that caught my eye was his comment about years. This would be capped by the 24 month rule surely?

[JamJarST]

Do you mean daily subsistence? If so it refers to meals. You cannot claim for laundry

Are you sure about that? I would argue that under some instances you could claim laudry costs as wholly and exclusively. For instance I did a 2 month stint in China (granted I was a permie), I couldn't take 2 months worth of clothes so I had get them washed in the hotel. That to me was wholly and exclusively due to the travel away from home, just like the meals you can claim.

[LisaContractorUmbrella]

what is daily allowance ie breakfast, lunch and dinner,travel daily from digs to work,and laundry if working for months/years

Do you mean daily subsistence? If so it refers to meals. You cannot claim for laundry