Yet another expenses question = food?

[SallyPlanIT]

I've just written a guide for all our new clients that covers most expenses and how they are treated. PM your email if you want a copy.

[Steven@Parasol]

More proof reading, less speed!

[Newby]

oh my 2

They may have a scale rate in place but this changes nothing for the contractor and is again purely for the purpose of streamlining the admin involved in processing expense claims.

HMRC can and will challenge expense claims from time to time so recipets should always be kept.

[Newby]

oh my

Wanderer is right re the dispensation but it is purely for admin purposes and contractors should only claim for what they spend and ALWAYS keep the reciepts. Just because your umbrella doesn't need to see them does not mean you won't be asked to produce them by HMRC.

[Steven@Parasol]

Is it possible they have a scale rate agreement since these are now potentially more widely available? In this case the rules are slightly different of course, provided the employer can prove the sampling etc used.

They may have a scale rate in place but this changes nothing for the contractor and is again purely for the purpose of streamlining the admin involved in processing expense claims.

HMRC can and will challenge expense claims from time to time so receipts should always be kept.

[ASB]

Wanderer is right re the dispensation but it is purely for admin purposes and contractors should only claim for what they spend and ALWAYS keep the reciepts. Just because your umbrella doesn't need to see them does not mean you won't be asked to produce them by HMRC.

Is it possible they have a scale rate agreement since these are now potentially more widely available? In this case the rules are slightly different of course, provided the employer can prove the sampling etc used.

[Steven@Parasol]

There is nothing wrong with what paystream are doing. They have a dispensation from HMRC to allow people to claim up to a certain amount without producing receipts and going through a whole lot of admin work. If you incurred the expense according to the rules then you can claim for it. Pretty much all umbrella companies work this way, it's standard practice.

Don't forget that although you don't have to produce receipts to Paystream, you will have to produce them if HMRC audit your expenses so make sure you keep them.

With a LTD company, the only difference is that you don't have the dispensation. You can still claim for the same expenses but understand the two year rule.

Wanderer is right re the dispensation but it is purely for admin purposes and contractors should only claim for what they spend and ALWAYS keep the receipts. Just because your umbrella doesn't need to see them does not mean you won't be asked to produce them by HMRC.

[gareth01422]

There is nothing wrong with what paystream are doing. They have a dispensation from HMRC to allow people to claim up to a certain amount without producing receipts and going through a whole lot of admin work. If you incurred the expense according to the rules then you can claim for it. Pretty much all umbrella companies work this way, it's standard practice.

Don't forget that although you don't have to produce receipts to Paystream, you will have to produce them if HMRC audit your expenses so make sure you keep them.

With a LTD company, the only difference is that you don't have the dispensation. You can still claim for the same expenses but understand the two year rule.

AH, thanks for the advice guys.

Yes I read through the thread on the 2 year rule.

G

[Wanderer]

Paystream (who I have used for the last 9 weeks on the umbrella scheme) told me to claim my
daily food allowance. They said it was a special deal they had with the tax man. Yes I agree it
seems a little fishy to me. They told me all I had to do was fill in the on-line claim form every week
and NOT give any receipts.

There is nothing wrong with what paystream are doing. They have a dispensation from HMRC to allow people to claim up to a certain amount without producing receipts and going through a whole lot of admin work. If you incurred the expense according to the rules then you can claim for it. Pretty much all umbrella companies work this way, it's standard practice.

Don't forget that although you don't have to produce receipts to Paystream, you will have to produce them if HMRC audit your expenses so make sure you keep them.

With a LTD company, the only difference is that you don't have the dispensation. You can still claim for the same expenses but understand the two year rule.

[northernladuk]

Congrats on setting up new Ltd. Get a decent specialist accountant - I use SJD and take their advice.

and do a search on here and read up all the other expenses type questions as well as do some research around the web. Google is your friend when it comes to basic questions like this. If you do this you will get a better idea of what is acceptable and what isn't. Is it wholly and exclusively for business purposes answers many of these questions we get.

P.s. SJD aint a bad set up and they send you regular snippits of info on how to do your accounts which is useful

[Old Greg]

Hi all

Today I have started trading as a LTD company and need some advice on the above topic.

Paystream (who I have used for the last 9 weeks on the umbrella scheme) told me to claim my
daily food allowance. They said it was a special deal they had with the tax man. Yes I agree it
seems a little fishy to me. They told me all I had to do was fill in the on-line claim form every week
and NOT give any receipts.

As I have now started working through my LTD company, will I still be able to claim this or is it
something you guys have never heard of?

I can snap shot the screen off paystream site if it helps.

G

Congrats on setting up new Ltd. Get a decent specialist accountant - I use SJD and take their advice.

[gareth01422]

They must know something we don't?

here is the image I promised.
http://i247.photobucket.com/albums/g.../Capture-3.jpg

G

[downsouth]

and where would paystream be in the event of a visit from the HMRC, hmmm I wonder.

Just get the reciepts and claim for the actual expenditure.

[gareth01422]

Hi all

Today I have started trading as a LTD company and need some advice on the above topic.

Paystream (who I have used for the last 9 weeks on the umbrella scheme) told me to claim my
daily food allowance. They said it was a special deal they had with the tax man. Yes I agree it
seems a little fishy to me. They told me all I had to do was fill in the on-line claim form every week
and NOT give any receipts.

As I have now started working through my LTD company, will I still be able to claim this or is it
something you guys have never heard of?

I can snap shot the screen off paystream site if it helps.

G