Reply to: Expenses for Working Abroad.

[Fred Bloggs]

Yep. That is what the P11Dx does. Application for dispensation.

We have a dispensation to pay an overnight scale rate for the UK but HMRC have let us know that when it is due to be reviewed in 2012 they will likely withdraw it. They don't like small Ltd Co's having them, apparently.

I didn't think you needed a dispensation to apply the overseas scale rates?

[TheFaQQer]

Yep. That is what the P11Dx does. Application for dispensation.

You'll need to be able to prove that you have robust controls in place to stop employees just claiming anything, and that someone other than the person making the claim approves the claim.

If you haven't got that, then chances are that the application will be rejected.

Oh - and you'll still need to keep the receipts.

[prozak]

I thought that to use a scale rate, you needed dispensation from HMRC to do so? Maybe not for overseas work - I'd speak to an accountant for clarity before you start claiming.

Yep. That is what the P11Dx does. Application for dispensation.

[TheFaQQer]

Thanks. Great link that one.

So it seems I can use those benchmarks as long as I get in a P11Dx.

They seem reasonable for Barbados. Approx £100-110 for the hotel room and £60 for subsistence.

That looks the way to go, the guidance suggests I don't have to keep loads of receipts. In fact if I use HMRC scale rates it seems that no receipts are required?

I thought that to use a scale rate, you needed dispensation from HMRC to do so? Maybe not for overseas work - I'd speak to an accountant for clarity before you start claiming.

[Pondlife]

Thanks. Great link that one.

So it seems I can use those benchmarks as long as I get in a P11Dx.

They seem reasonable for Barbados. Approx £100-110 for the hotel room and £60 for subsistence.

That looks the way to go, the guidance suggests I don't have to keep loads of receipts. In fact if I use HMRC scale rates it seems that no receipts are required?

ALWAYS keep reciepts.

[prozak]

Use the cheapest way to get currency out whether it's your business card or personal cards. Make sure you keep all receipts.

As you will be away for months you will find that you are allowed your rent and a daily living allowance for food. This means you won't be claiming for individual meals apart from your days of travel.

There is a booklet on HMRC's website which gives Civil service rates that you can claim world-wide. It's on this page - Employment income: scale rate expenses payments: accommodation and subsistence payments to employees travelling outside the UK

I suggest you read everything people have guided you to, then confirm with your accountant that you are allowed to do all this.

Thanks. Great link that one.

So it seems I can use those benchmarks as long as I get in a P11Dx.

They seem reasonable for Barbados. Approx £100-110 for the hotel room and £60 for subsistence.

That looks the way to go, the guidance suggests I don't have to keep loads of receipts. In fact if I use HMRC scale rates it seems that no receipts are required?

[SueEllen]

So a follow up.

I assume it does not matter if I use my company Visa card for these expenses?

What about paying for things out of petty cash? I.e taking cash out of ATM's. Cos I'd rather not have a load of small expenses and getting charged fees every time I make a transaction abroad.

Use the cheapest way to get currency out whether it's your business card or personal cards. Make sure you keep all receipts.

As you will be away for months you will find that you are allowed your rent and a daily living allowance for food. This means you won't be claiming for individual meals apart from your days of travel.

There is a booklet on HMRC's website which gives Civil service rates that you can claim world-wide. It's on this page - Employment income: scale rate expenses payments: accommodation and subsistence payments to employees travelling outside the UK

I suggest you read everything people have guided you to, then confirm with your accountant that you are allowed to do all this.

[TheFaQQer]

Hold on. I read that as:

I can claim my accom and subsistence when they arrive.
I cannot claim theirs.

I can still claim my accommodation when they arrive as long as I didnt get a bigger place to accommodate them.

Foreign travel rules: duties performed wholly abroad: foreign accommodation or subsistence costs and expenses says

If accommodation or subsistence is provided partly for another purpose, for example, private use for a holiday, you should limit the deduction to the amount included in earnings that is properly attributable to the business purpose.

I would argue that using a flat that you rented for business purposes to put your family up so that they don't have to stay in a hotel would fail duality of purpose, because it is being used for private use as well now.

[prozak]

Foreign travel rules: duties performed wholly or partly abroad: travelling expenses of the employee's family is the page to read - two trips per tax year, if you are abroad for 60 days or more.

You can claim the flight, but no accommodation or subsistence when they get there, and if they are staying in the same flat as you, adjust your claim for that period accordingly. Check up on the duality of purpose rules.

Hold on. I read that as:

I can claim my accom and subsistence when they arrive.
I cannot claim theirs.

I can still claim my accommodation when they arrive as long as I didnt get a bigger place to accommodate them.

[prozak]

So a follow up.

I assume it does not matter if I use my company Visa card for these expenses?

What about paying for things out of petty cash? I.e taking cash out of ATM's. Cos I'd rather not have a load of small expenses and getting charged fees every time I make a transaction abroad.

[prozak]

It's all in here

Special rules for employees travelling to work outside the United Kingdom: contents page

aha! Thanks.

Duties wholly abroad.

Only reason I am asking is that I do not believe I will be non-resident.

[TheFaQQer]

You might be surprised. I think it depends on whether your duties are wholly or partly performed abroad.

See here

Travelling expenses: employees working abroad: expenses that may be deducted: example

Foreign travel rules: duties performed wholly or partly abroad: travelling expenses of the employee's family is the page to read - two trips per tax year, if you are abroad for 60 days or more.

You can claim the flight, but no accommodation or subsistence when they get there, and if they are staying in the same flat as you, adjust your claim for that period accordingly. Check up on the duality of purpose rules.

[Pondlife]

Any others I should be claiming?
What if my family wish to visit ? - that sounds wrong to me...


Thanks.

You might be surprised. I think it depends on whether your duties are wholly or partly performed abroad.

See here

http://www.hmrc.gov.uk/manuals/eimanual/EIM34003.htm

[Pondlife]

It's all in here

Special rules for employees travelling to work outside the United Kingdom: contents page

[prozak]

pop.