Reply to: subsistence whilst contracting via ltd

[Robot]

From Revenue website ...

Tax relief for travel and subsistence

When you can get tax relief for travel and subsistence costs
If you've got to make journeys for business purposes you can deduct your travelling expenses from your taxable income - so you'll pay less tax.

What are business journeys

You can only get tax relief on the cost of business journeys. These are when, as part of your job:

•you have to travel from one workplace to another - this includes travelling between your main 'permanent workplace' and a temporary workplace

•you've got to travel to or from a certain workplace because your job requires you to

But business journeys don't include:

•ordinary commuting - when you travel between your home (or anywhere that is not a workplace) and a place which counts as a permanent workplace•private journeys - which have nothing to do with your job


Providing your at a temporary work place you could claim lunch... that's what the above is saying, note the words Travel and Subsistence... not just Travel !!

[LisaContractorUmbrella]

No link, but an email from the accountant confirming it. I have also obtained a copy of an umbrellas agreement with HMRC for more or less the same amounts. I think if you can prove they've agreed it is acceptable with someone else, then they don't really have an argument in court.

The umbrella company's 'agreement' with HMR&C is a dispensation and it is an accounting tool - nothing more and nothing less; if an umbrella company does not have a dispensation they have to file P11d's for all expenses claimed. However, that dispensation does not mean that their employees can claim a daily allowance for subsistence regardless of whether or not they incur a cost. Scale rates were introduced by HMR&C themselves to save time but even their employees will be subject to discpilinary action if they submit an invalid claim.

[Craig@Clarity]

Did he give you a link to back that up?

Here's a starting link which I think the accountant was referring to called benchmark scale rates Employment income: scale rate expenses payments: accommodation and subsistence payments to employees travelling outside the UK

There must be a dispensation in place (agreement with HMRC on typical levels of expenditure) for it to be used.

[Zoiderman]

No link, but an email from the accountant confirming it. I have also obtained a copy of an umbrellas agreement with HMRC for more or less the same amounts. I think if you can prove they've agreed it is acceptable with someone else, then they don't really have an argument in court.

[d000hg]

I've spoken to my accopuntant about this and he's been quite clear that if I am away from my 'office' on a client site and that I am away for over 10 hours (it may have been 10.5), I am entitled to claim for breakfast lunch and dinner, up to £25 per day.

Did he give you a link to back that up?

I think the key is to discuss this with your accountant; some will be more/less conservative.

Your accountant doesn't make the rules. How conservative they are is kind of irrelevant, you are the one HMRC will check up on not them.

[Zoiderman]

I've spoken to my accopuntant about this and he's been quite clear that if I am away from my 'office' on a client site and that I am away for over 10 hours (it may have been 10.5), I am entitled to claim for breakfast lunch and dinner, up to £25 per day. He's also said it would be acceptable to the tax people to assume that, so that I would not have to receipt it either. I currently claim £15 a day for breakfast, lunch and coffees as a flat rate. I leave home at 6am and get home at 5pm. According to my accountant, this would be assumed as acceptable.

As an aside, re receipting, I had a contract in wales which saw me using the Severn crossing daily. After 3 months of keeping the receipts, I asked him whether or not I had to keep the receipts and he said no, it would be reasonable to expect to pay the toll, so I could claim it for every day I worked. I think the key is to discuss this with your accountant; some will be more/less conservative.

[BA to the Stars]

Oh bugger. It's £1.35 a litre, not £1.35 a gallon, isn't it...

Wishful thinking - those were the days £1.35 per gallon
I had just started work, Star Wars Episode V: The Empire Strikes Back was released, John Lennon was shot dead in New York and development began on Alton Towers. We still had the filofax and Yuppies to come!

[northernladuk]

I have an efficient, second owner diesel estate thanks. According to the AA's figures, it costs me around 64p a mile to own and run it.

10k miles at 40ppm means you've got £4k to spend. 10k miles at 30mpg costs roughly £450. Assuming no servicing or consumables you buy a car costing £3500 and you might make a slight profit.Whoop-di-doo.

See - I can do sums.

Erm, guys.. It's 45p now

[MarillionFan]

Only a factor of 4.5 out. About as accurate as the average bob quote.

It's a good job Malvolio is in the PCG. With the ability to do sums like that he may need some use of the odd PCG insurance policy in the future.

[eek]

Oh bugger. It's £1.35 a litre, not £1.35 a gallon, isn't it...

Only a factor of 4.5 out. About as accurate as the average bob quote.

[malvolio]

Errrrr. No you can't. But thanks for trying.

Oh bugger. It's £1.35 a litre, not £1.35 a gallon, isn't it...

[MarillionFan]

I have an efficient, second owner diesel estate thanks. According to the AA's figures, it costs me around 64p a mile to own and run it.

10k miles at 40ppm means you've got £4k to spend. 10k miles at 30mpg costs roughly £450. Assuming no servicing or consumables you buy a car costing£3500 you might make a slight profit.Whoop-di-doo.

See - I can do sums.

Errrrr. No you can't. But thanks for trying.

[malvolio]

Malvolio. It's 40p per mile, so if you're clever you buy a car that is efficient(diesel) and depreciates less or you run an old car into the ground. Not everyone drives a sports car fella.

So you agree that it would be silly not claim subsistence back then?

I have an efficient, second owner diesel estate thanks. According to the AA's figures, it costs me around 64p a mile to own and run it.

10k miles at 40ppm means you've got £4k to spend. 10k miles at 30mpg costs roughly £450. Assuming no servicing or consumables you buy a car costing £3500 and you might make a slight profit.Whoop-di-doo.

See - I can do sums.

[MarillionFan]

So you got your car for free and never put petrol in then?

You're repaying earned income remember, it's not free money.

Malvolio. It's 40p per mile, so if you're clever you buy a car that is efficient(diesel) and depreciates less or you run an old car into the ground. Not everyone drives a sports car fella.

So you agree that it would be silly not claim subsistence back then?

[malvolio]

So that's £5 per day for food.

My LTD states that my working office is my home, so I assume NL is also on 140 miles round trip @ 40p per mile. = £56 quid (with a claim back in vat according to the rules). £305 per week.

Yep. Pennies. Not worth the problem, hey.

So you got your car for free and never put petrol in then?

You're repaying earned income remember, it's not free money.