Quick question ref expenses

[Martin at NixonWilliams]

We are working at the client's site some 300 miles from usual site and obviously staying overnight Mon-Fri to get the job done up there. The client has over 400 people working there, mostly contractors, so have block booked accommodation and are providing a canteen etc. This means the only chargeable expense from our Ltd company is for travel, which the client is paying at 40p per mile.

My question is this; as we are using our personal car (don't have a company vehicle yet) and have paid for petrol etc from personal bank account, do we then need to submit a claim form to our Ltd for personal reimbursement as a member of staff? The client has paid the claimed amounts as part of weekly invoice and so far the money is in the business bank account. It would seem odd not to claim it back personally as otherwise there is a payment to the Ltd without the corresponding expense having been incurred.

Much obliged folks.

Yes, you should claim from your limited company. Note that you are still entitled to 45ppm (for the first 10,000 miles) even though your client is only paying you 40ppm.

To clarify:

- You should claim 45ppm from your limited company for the first 10,000 miles in any tax year, and 25ppm thereafter.

- You should charge £0.48 (£0.40+VAT) to your client for the miles incurred.

I hope this helps.

Martin

[TheFaQQer]

Employee claims from employer.

Company bills the expenses to the client, adding VAT on top.

[TheMrs]

We are working at the client's site some 300 miles from usual site and obviously staying overnight Mon-Fri to get the job done up there. The client has over 400 people working there, mostly contractors, so have block booked accommodation and are providing a canteen etc. This means the only chargeable expense from our Ltd company is for travel, which the client is paying at 40p per mile.

My question is this; as we are using our personal car (don't have a company vehicle yet) and have paid for petrol etc from personal bank account, do we then need to submit a claim form to our Ltd for personal reimbursement as a member of staff? The client has paid the claimed amounts as part of weekly invoice and so far the money is in the business bank account. It would seem odd not to claim it back personally as otherwise there is a payment to the Ltd without the corresponding expense having been incurred.

Much obliged folks.