Expenses question

[Platypus]

I travel quite a lot (compared to some, not compared to others) and I usually claim everything, backed up with receipts. Things like laundry and bar bills usually end up on the hotel bill. I probably wouldn't claim a night out on the lash, although I might try and justify it as 'entertaining clients' depending on how bad the damage is. i.e. a couple of beers at a bar, no. An expensive evening out with colleagues, yes. All taxis, absolutely, even if for an evening trip downtown for dinner then back again. I wouldn't claim in-room on-demand TV as that is clearly not "wholly and exclusively" but then again I tend the load the laptop up with movies and telly before I leave. Tip: take a VGA or HDMI cable with you to watch on the hotel telly!

I don't claim the £10 per day for incidentals, maybe I'm missing a trick.

I've never had an accountant query any of this. But then again I don't check how much he offsets against CT and how much he doesn't.

HTH

[BingoBongo]

When I've been travelling I've claimed expenses going back to a company of laundry, newspaper, all meals, alcohol, coffees... it has never been queried but the cost has never been unreasonable.

Used to have a cracking time on the per diem expenses in my early twenties. Used to get 120 quid a day for living expenses in Brussels. 80 quid was supposed to go on the hotel. I stayed in the dodgiest B and B hovels for 20 quid a night.

[SueEllen]

Thanks for the replies.

So if I understand correctly I can submit expense claims for the values in the HMRC benchmarks (85+110=195$) regardless of how much I actually spend and an additional 10£ for daily subsistence. I must keep receipts to prove the trip happened and have my claim validated by another employee (or accountant).

That sounds good.

Wrong - you claim the benchmark rates OR the actual cost plus £10 per night.

I would keep as many receipts as possible as proof that you went abroad.

There are different rules to do with the day of departure and arrival but you have to read the links given to you.

Disappointed my accountant didn't provide this advice and just say 'yes you can claim hotels and meals'. Shows these forums add real value.

Lots of accountants don't know this because they don't have small business owners who do work abroad.

[jamesbrown]

I don't think you can do both, i.e. just claim the local benchmark rate and not the £10 overseas rate for incidentals on top of that. Probably not a bad idea to keep things consistent as well, using the same approach for future travel.

[helen7]

So, do I understand this right?

Thanks for the replies.

So if I understand correctly I can submit expense claims for the values in the HMRC benchmarks (85+110=195$) regardless of how much I actually spend and an additional 10£ for daily subsistence. I must keep receipts to prove the trip happened and have my claim validated by another employee (or accountant).

That sounds good.


Disappointed my accountant didn't provide this advice and just say 'yes you can claim hotels and meals'. Shows these forums add real value.

[jamesbrown]

No receipts are required.

Interesting, thanks. It's a while since I spoke to my accountant on this and I may have misunderstood the need for proof of incurring subsistence, in order to justify the subsistence portion of the benchmark rate. In the past I've just claimed for the actual (receipted) costs plus the £10 for incidentals on international trips, but I plan to use the benchmark rate in future

[stek]

Expenses question

My understanding is that you have two options for subsistence. One is to use the standard HMRC international rate of £10 per day for incidentals. The other is to claim the daily subsistence allowance ($85 + hotel) quoted above for that location. However, in order to do the latter, I believe you need at least one receipt as proof of expenditure each day, aside from the hotel cost.

No receipts are required.

[jamesbrown]

So the business person could stay in a hotel and claim US$195/day as expenses regardless of the actual expenditure?

My understanding is that you have two options for subsistence. One is to use the standard HMRC international rate of £10 per day for incidentals. The other is to claim the daily subsistence allowance ($85 + hotel) quoted above for that location. However, in order to do the latter, I believe you need at least one receipt as proof of expenditure each day, aside from the hotel cost.

[Wanderer]

This is the HMRC benchmark rates for Houston

So the business person could stay in a hotel and claim US$195/day as expenses regardless of the actual expenditure?

[northernladuk]

Sounds odd? So they are giving you a fixed sum to go and it's up to you what you spend out of that? Never heard of that before, particularly when the flight costs can vary wildly depending on when you go, who with and what class. Hotels and meals I guess I couldn't understand but never seen that cover flights as well.

[stek]

This is the HMRC benchmark rates for Houston, formatting screwed a bit...:

http://www.hmrc.gov.uk/employers/wwsr-bench-2012.pdf

UNITED STATES OF AMERICA Houston
Currency:
Room rate:
Breakfast: 13.5 Lunch: 20.0
Over 5 hours: Over 10 hours: 24 hour rate:
23.0
64.5
85.0 + room rate
110.0
USD (unless stated otherwise)
UNITED STATES OF AMERICA
Dinner:
Other:
Drinks:
Hotel to office: Total residual:
Currency:
39.0 0.0 5.5 7.0 85.0

[philip@wellwoodhoyle]

Flights, hotel, taxis, evening meals etc are all fine. Also fine would be breakfasts and lunches and drinks etc through the day (not alcohol unless as part of a meal).

Specific costs of laundry isn't allowable, nor are costs of telephone calls home, newspapers etc., BUT, HMRC allow a daily (nightly) rate of £10 (abroad rate) to cover "incidentals" such as these:-

Employment income: incidental overnight expenses: the permitted amount

[Pondlife]

As long as you don't take the p*ss you should be fine for all travel, meals & accommodation costs.

It's questionable about whether Laundry, In-room movies or other entertainment are expensable IMVHO.

[Notascooby]

If it's a business trip and wholly and exclusively a business trip you can expense everything. Just remember this doesn't make it free, just tax deductible.

*Do I get my NLUK badge now?

[helen7]

Hi,

Quick question regarding expenses. I have searched to forum and each thread seems to contradict the other.


My client has asked me to go to Texas for a week. They are paying me a flat rate to cover the expenses so I have to organise my own flights, hotel, meals etc...

So, my question is what can I legitimately put through my limited company as expenses?

Flights and Hotel, I assume no problem.

1. Evening meal? (Since I will have no catering facilities). Is there a limit on how much can be spent (I don't eat cheap fast food).
2. Taxi's to and from office/hotel
3. Laundry costs at hotel

Thanks