Reply to: Starting to claim something your entitled to but not claimed for in the past

[Contreras]

Can I retrospectively claim, or is it best just to start from today (or probably tomorrow being the 1st)

Not everyone claims their expenses the day they incur them so presuming you have records of when you were able to claim it and it's still in the current personal/company tax year then I'd just put in a claim retrospectively and repay the money to yourself as a nice lump sum.

Same here. Out-of-pocket expenses recorded as an when they happen, but claimed back at company year end as a lump sum. Ditto for mileage and "use of home" statutory allowances.

[Wanderer]

Can I retrospectively claim, or is it best just to start from today (or probably tomorrow being the 1st)

Not everyone claims their expenses the day they incur them so presuming you have records of when you were able to claim it and it's still in the current personal/company tax year then I'd just put in a claim retrospectively and repay the money to yourself as a nice lump sum.

[Greg@CapitalCity]

Still not sure where the "12 hours" rule comes into it though.

So there are two things going on here;
(1) Incidental overnight expenses (for things like buying newspapers, paying for laundry,phoning home) - this is the £5 a night I mentioned (£10 if overseas), and is NOT related to subsistence;
(2) Subsistence when travelling. Most contractors just claim the actual cost of subsistence and keep their receipts, but the HMRC have issued a set of benchmark scale rates that can be used (have a read of the link below which explains why such a system was brought into existence), and the employer needs a dispensation from the HMRC to run this scheme. If you read the justification for bringing in this system, you will see it not designed for a one-man band at all. I am not sure if the HMRC would approve a dispensation to use benchmark scale rates for subsistence, for a single Director company. Maybe the other accountants on here have experience with this. Actually we did try it about 18-24months ago for a client - the HMRC turned it down on the basis there could be no other party checking that the system was being run correctly.

http://www.hmrc.gov.uk/briefs/income-tax/brief2409.htm

[Clare@InTouch]

Well I'm happy to stand corrected in that case, and thanks for the link.

So are we saying that Incidental Overnight Expense is in effect (or is) a flat rate statutory allowance, to be claimed in full no questions asked?

Still not sure where the "12 hours" rule comes into it though.

The £5 incidental expense can be claimed by anyone, and it's £10 if you're abroad.

If you want the 12 hour rate etc then you need a dispensation in place. Otherwise you just claim the amount you spend.

[Contreras]

I think the OP is referring to "Incidental overnight expenses" - so its true that no receipts etc are required, and no dispensation. Take a look at;
HM Revenue & Customs: Incidental overnight expenses

Well I'm happy to stand corrected in that case, and thanks for the link.

So are we saying that Incidental Overnight Expense is in effect (or is) a flat rate statutory allowance, to be claimed in full no questions asked?

Still not sure where the "12 hours" rule comes into it though.

[SimonMac]

Can I retrospectively claim, or is it best just to start from today (or probably tomorrow being the 1st)

[Greg@CapitalCity]

Unless you have a dispensation from HMRC, the "£5" and "12 hours" stuff is irrelevant and you claim for the actual cost incurred. Of course, you will also be able to somehow demonstrate this and receipts are good for that!

I think the OP is referring to "Incidental overnight expenses" - so its true that no receipts etc are required, and no dispensation. Take a look at;
HM Revenue & Customs: Incidental overnight expenses

[BolshieBastard]

It was done in the "Daily Substinence"* thread recently.

Unless you have a dispensation from HMRC, the "£5" and "12 hours" stuff is irrelevant and you claim for the actual cost incurred. Of course, you will also be able to somehow demonstrate this and receipts are good for that!

* aware

You even said in that thread its going around in circles. Clearly you disagree with some people's point of view.

I dont know if you're an accountant yourself but, Im happy to go with what my long standing accountant says, I dont work through a brolly either.

[Contreras]

I always thought that you could only claim upto £5 (for an overnight stay in the UK) if you'd actually spent that amount. Is that right? Or can one just claim £5 regardless of whether they'd spent it or not?

It was done in the "Daily Substinence"* thread recently.

Unless you have a dispensation from HMRC, the "£5" and "12 hours" stuff is irrelevant and you claim for the actual cost incurred. Of course, you will also be able to somehow demonstrate this and receipts are good for that!

* aware

[kingcook]

I always thought that you could only claim upto £5 (for an overnight stay in the UK) if you'd actually spent that amount. Is that right? Or can one just claim £5 regardless of whether they'd spent it or not?

[BolshieBastard]

I know HMRC will allow you to claim £5 per night you are away without any receipts etc as a daily subsistence, but I have never bothered to claim this, I try to keep thinks simple so the savings on your CT bill will still only be at most £200 a year, but as they say every little helps.

My worry is that none of my previous contracts I have claimed this, will it look suspicion if I start claiming for something that I know I am entitled to, but have never done before in the past?

So long as you are away from hom for 12 hours, why not claim it? If you are working away and stay in a hotel, there's added proof to support your claim.

[Cenobite]

I am about to hit the 10,000 mile limit (yeah I know its only been 4 months ) so trying to make up a drop in mileage

I've been using https://hubo.herokuapp.com to keep track of the 10,000 mile limit. It's a bit of a nause otherwise.

[northernladuk]

I am about to hit the 10,000 mile limit (yeah I know its only been 4 months ) so trying to make up a drop in mileage

LOL Did exactly the same in my first year of LTD. Was pretty lax about claming phone and other minor expenses but as soon as I hit 10K miles 6 months in I had a sudden change of heart as well and anything that could be legitimately claimed went in.

[SimonMac]

I never really worry about things at this level. I don't think HMRC are in the business of trying to spot trends. If that were the case every spot on the bench or increase/decrease in rates would be raising a flag to them. I would bet that fluctuations, particularly this small will never initiate an investigation. You only need one month on the bench and your final figures will change substantially more than you starting to claim this.

Business changes and so does income/cost etc so it is to be expected it was different. They should be more interested in the guy that puts the same figures in for 3 or 4 years which would look more suspicious.

I am about to hit the 10,000 mile limit (yeah I know its only been 4 months ) so trying to make up a drop in mileage

[northernladuk]

I never really worry about things at this level. I don't think HMRC are in the business of trying to spot trends. If that were the case every spot on the bench or increase/decrease in rates would be raising a flag to them. I would bet that fluctuations, particularly this small will never initiate an investigation. You only need one month on the bench and your final figures will change substantially more than you starting to claim this.

Business changes and so does income/cost etc so it is to be expected it was different. They should be more interested in the guy that puts the same figures in for 3 or 4 years which would look more suspicious.