Reply to: Claiming for food

[Notascooby]

Yeah, it is misleading to be fair. Lots of people think you get all your expenses paid but what it really means is that you still pay for it out of your own pocket but you don't pay tax on that part of your income....

Which when you're above the 40% threshold is a considerable wack - and who doesn't like 40% off?

[Wanderer]

Looks like I'll be better off bringing food from home and not expensing anything bought whilst at work.

And there was me thinking I get 3 free meals a day

Yeah, it is misleading to be fair. Lots of people think you get all your expenses paid but what it really means is that you still pay for it out of your own pocket but you don't pay tax on that part of your income....

[northernladuk]

Thanks.

Looks like I'll be better off bringing food from home and not expensing anything bought whilst at work.

And there was me thinking I get 3 free meals a day

They wouldn't have been free even if you could have claimed them.. Jesus

[blinko]

I am surprised they allow food to be claimed at all. The packed lunch argument being the msot obvious inbdication that the rule isn't really fit for purpose.....

[mikedarv]

Thanks.

Looks like I'll be better off bringing food from home and not expensing anything bought whilst at work.

And there was me thinking I get 3 free meals a day

[Hex]

Link on Meal Allowances

Here a link I posted on this thread: http://forums.contractoruk.com/accou...ml#post1529265

Meal Allowances | Internet Taxation Ltd

It might help clarify what you can and can't claim. The bloke who wrote it is an ex-HMRC inspector.

[northernladuk]

I normally have my man pick me up a couple of these:

£85 for a sandwich | Metro.co.uk

You, sir, are the man! I bow to your tastes.

[ASB]

I know as a contractor we are expected to be flash and don't somethings on the cheap but £20 for sarnies!! Caviar butty anyone?

I normally have my man pick me up a couple of these:

£85 for a sandwich | Metro.co.uk

[northernladuk]

I see where you are going. So lets assume the claims will be OK.

So, you buy sandwiches etc whatever, and these happen to cost you £20 per day. £100 per week. If the claims are OK then this will come off your gross pay.

I know as a contractor we are expected to be flash and don't somethings on the cheap but £20 for sarnies!! Caviar butty anyone?

[ASB]

Sorry didn't explain it very well.

I can buy food whilst at work under the allowance and expense it. Or I can just bring food from home and not expense it. If I was to bring food from home I might still be saving more money than if I was buying then expensing food.

I see where you are going. So lets assume the claims will be OK.

So, you buy sandwiches etc whatever, and these happen to cost you £20 per day. £100 per week. If the claims are OK then this will come off your gross pay.

So, the question is, what would that £100 yield me net. That depends upon whether you are a normal or higher rate tax payer. However, broadly it is approximately one of the following:-

Normal Rate:

£100 less £12 ER's NI = 88 less 10.50 ee's NI less 17.50 tax = £60 net income

40% rate

£100 less £12 ER's NI = 88 less 2% NI £2.00 less 35.20 tax = £50 net income.

So, the question for you is whether you could use less than £50 of net income to provide your meals by doing it yourself.

[mikedarv]

You cannot claim £100 per week expenses when you are only spending £30 - HMR&C gets extremely upset about that sort of thing

Sorry didn't explain it very well.

I can buy food whilst at work under the allowance and expense it. Or I can just bring food from home and not expense it. If I was to bring food from home I might still be saving more money than if I was buying then expensing food.

[LisaContractorUmbrella]

The daily food allowance of £16 plus £4 travel, so £100 a week expenses.

Just not sure if I would be better off making use of the expenses or not. Without expensing food/travel I’d be spending £30 a week.

I’ll probably understand it all when I see my first payslip, only started on Monday!

You cannot claim £100 per week expenses when you are only spending £30 - HMR&C gets extremely upset about that sort of thing

[mikedarv]

That's not really the question. The question is will you incur costs of £100 which will represent allowable expenses - what does that £100 represent?

The daily food allowance of £16 plus £4 travel, so £100 a week expenses.

Just not sure if I would be better off making use of the expenses or not. Without expensing food/travel I’d be spending £30 a week.

I’ll probably understand it all when I see my first payslip, only started on Monday!

[LisaContractorUmbrella]

That’s right, sorry yes misread the policy, “we will then reimburse you” sent me down the wrong path.

If I was to claim £100 week non-billable expenses on travel/food, would the tax relief add up to this amount? Just trying to work out what % of money I spend I will ultimately recoup by paying less tax..on average.

That's not really the question. The question is will you incur costs of £100 which will represent allowable expenses - what does that £100 represent?

[mikedarv]

Did your umbrella company tell you this? If so you need a new umbrella company.

There are very strict rules governing when you can claim for meals and it would be very unlikely that you could legitimately claim for 3 meals. The expenses would be processed as a tax benefit if they were allowable which would mean that you would get the tax relief on the amount claimed rather than it be reimbursed in full.

That’s right, sorry yes misread the policy, “we will then reimburse you” sent me down the wrong path.

If I was to claim £100 week non-billable expenses on travel/food, would the tax relief add up to this amount? Just trying to work out what % of money I spend I will ultimately recoup by paying less tax..on average.