Reply to: What Can I Include On Company Expenses, To Reduce Tax Bill?

[jamesbrown]

Just wanted to have a second opinion. I've claimed accomodation (hotel), travel and meals when I've had to stay overnight. I didn't know about the £5 "Incidental Overnight Expenses" so that's why I'm asking, if the £5 is let's say, on top of the other expenses, as it seems to be.

The purpose of the incidentals (£5 in the UK, £10 overseas) is to cover expenses that are incidental and wouldn't otherwise qualify for relief (i.e. non-allowable incidental overnight expenses). For this reason, they are in addition to any allowable expenses. For example, if you had a dispensation (soon to disappear) and were to claim benchmark scale rates, you could also claim the non-allowable incidental overnight expenses, subject to meeting the other conditions. By way of example:

https://www.gov.uk/hmrc-internal-man...anual/eim05200

Non-allowable incidental overnight expenses

Scale rate expenses payments, as described above, relate to items for which employees are entitled to tax relief under the rules in, principally, Sections 336 to 338 ITEPA 2003 (see EIM31800 onwards). However, employees who have to stay away from home overnight often incur incidental expenses for which no relief is permitted under those rules. For example, they may buy newspapers, pay for laundry or phone home. Those expenses are not incurred necessarily in performing the duties of the employment, and so do not qualify for tax relief. Employers may nevertheless reimburse such incidental expenses, free of tax and NICs, within the limits set out at EIM02710 onwards. Those reimbursements can be made in addition to any agreed scale rate payment for allowable expenses.

[SueEllen]

Did you even read before writing that? I already talked to my accountant. I'm asking for second opinions.

But, whatever.

Yes I did.

I also told you were I got my information from as I've stayed in lodgings, hotels, B&Bs, self-catering apartments and with friends while working away.

If you have asked your accountant, read the links and googled the other sources then you should understand what you can claim and why.

You basically cannot claim more than you have actually spent. You also should be able to prove your accommodation costs if asked. Finally you also need to stick to one method of calculating your expenses - so if you have claimed the extra cost of phone calls on your itemised hotel bill (and not having an itemised bill is suspicious) you can't claim the £5.

[northernladuk]

Third opinion. The second would be yours from from reading the links and understanding the explanations.

[AnotherGuy]

Go talk to your accountant

Did you even read before writing that? I already talked to my accountant. I'm asking for second opinions.

But, whatever.

[FrontEnder]

Jeez. It's not complicated... :|

What's not?

[northernladuk]

Jeez. It's not complicated... :|

[FrontEnder]

I never new about these incidental expenses. I'm thinking I can probably claim for some things. I'll ask my accountant, but I think it's worth discussing here too.

I'm staying in a house rather than a hotel in order to reduce my expenses. Basically I don't have to eat out or get takeaways as I have a kitchen and fridge. I pay a weekly rate inclusive of all bills which actually works out less than hotels around here.

I occasionally eat out, but generally get shopping from a supermarket. I therefore haven't claimed these as the cost isn't really any more than if I was staying at home.

However, I think this falls under the definition of incidental expenses:

‘Incidental overnight expenses’ are personal (non-business) expenses incurred by an employee while travelling overnight on business.

Thoughts?

[SueEllen]

Go talk to your accountant

[AnotherGuy]

Yes

No

[northernladuk]

No

[LondonManc]

Yes

[AnotherGuy]

Have you tried googling your accountant?

Yes.

This was the answer:

The incidental expenses cannot be claimed if you have already claimed the actual expenses, please refer to the HMRC fact sheet on incidental costs which states you cannot claim for the incidental costs.

Sections 240 and 241 ITEPA 2003
"Employees who stay away from home overnight may incur incidental expenses for which no relief is permitted under the deduction rules in Part 5 ITEPA 2003. For example, they may buy newspapers, pay for laundry or phone home. These expenses are not incurred necessarily in performing the duties of the employment"

Just wanted to have a second opinion. I've claimed accomodation (hotel), travel and meals when I've had to stay overnight. I didn't know about the £5 "Incidental Overnight Expenses" so that's why I'm asking, if the £5 is let's say, on top of the other expenses, as it seems to be.

[SueEllen]

Actually yes, I found this old thread via google

I've been trying to find some more information about this allowance but most threads are very old and not to the point. I decided to just choose this one as seems to be related.

Have you tried googling HMRC?

[northernladuk]

http://www.makeitbalance.co.uk/categ...ness-expenses/

Or the official line...
https://www.gov.uk/expenses-benefits...enses/overview

[LondonManc]

Actually yes, I found this old thread via google

I've been trying to find some more information about this allowance but most threads are very old and not to the point. I decided to just choose this one as seems to be related.

Have you tried googling your accountant?