Reply to: Lunch expenses

[Contreras]

They're all disguised employees. Travel and subsistence is no longer tax deductible. Distance is irrelevant.

FTFY

[TheCyclingProgrammer]

These are umbrella rules (with dispensation to use scale rates) and not applicable to Ltd contractors.

The rules under which scale rates apply are still the same though (i.e. the subsistence must be in connection with business travel or travel to a temporary workplace, subject to the 24 month rule).

I've always assumed the tighter restrictions on how many meals you can claim under scale rates, based on hours away from home, was simply to prevent abuse.

[TheCyclingProgrammer]

yeah it's definitely forum comments rather than the 1000s of people claiming lunches when they live 5 miles away from client site that's done it

If the travel and subsistence rules means that lunch costs are tax deductible, then there is no reason why you shouldn't claim it. Distance is irrelevant.

[Contreras]

and as I am away from home for 13hrs a day am entitled to claim for 2 meals (with a receipt) 10 quid per day.

These are umbrella rules (with dispensation to use scale rates) and not applicable to Ltd contractors.

[pr1]

With fellow contractors like you coming out with comments like that its a lost cause then, go on Chancellor take all the contractor benefits.

Presently I am on 108 miles a day commute which I claim (against tax ) at 45ppm, and as I am away from home for 13hrs a day am entitled to claim for 2 meals (with a receipt) 10 quid per day. the 45p drops to 20 after 10000 miles when I will review if the gig is worth doing. (Umbrella)

yeah it's definitely forum comments rather than the 1000s of people claiming lunches when they live 5 miles away from client site that's done it

[Yonmons]

no wonder they're trying to tighten up on travel and subsistence p1ss taking, jesus

With fellow contractors like you coming out with comments like that its a lost cause then, go on Chancellor take all the contractor benefits.

Presently I am on 108 miles a day commute which I claim (against tax ) at 45ppm, and as I am away from home for 13hrs a day am entitled to claim for 2 meals (with a receipt) 10 quid per day. the 45p drops to 20 after 10000 miles when I will review if the gig is worth doing. (Umbrella)

[northernladuk]

I maintain all the receipts, but I do recon to have some where I paid for some drinks for my work mates, or some expensive (but not luxurious) lunch/dinner, and the total value on those is higher than usual...

Reading some of your posts I think a spell checker and a proof read is in order... Not that I'm the best one to suggest that. Just saying like.

[AnotherGuy]

I maintain all the receipts, but I do reckon to have some where I paid for some drinks for my work mates, or some expensive (but not luxurious) lunch/dinner, and the total value on those is higher than usual...

[VillageContractor]

Glad to see we all agree

That's helped me understand this a bit more. Has anyone ever been audited by HMRC and had questions raised around lunch receipts?

VC

[northernladuk]

There are people on here who see IR35 as a personal hobby, the vast amount of actual contractors don't give a stuff.

They will do soon.... Actually many of them probably won't as they have no idea what's happening

[PerfectStorm]

Pretty much sums it up, although as this thread shows some people seem to think not claiming lunch is the right thing to do. That's still their choice.

There are people on here who see IR35 as a personal hobby, the vast amount of actual contractors don't give a stuff.

[TheCyclingProgrammer]

If there is an onsite canteen and you make use of it, it could be argued that you're in receipt or an employee benefit

Surely not if you have to pay for it?

If you're worried about the effect it has on your IR35 status then I think you have bigger things to worry about. If your client is big enough to have its own canteen facilities then why wouldn't you use them? Do you also leave the building to go for a tulip too?

Whether its a "canteen" where you have to pay for meals or just a small kitchen where you can help yourself to free soft drinks/tea/coffee/biscuits, I don't let this sort of stuff bother me. If your clients policy is to allow all employees and contractors make use of their facilities or help themselves to drinks from the fridge then its not really a differentiator.

[TheCyclingProgrammer]

In short what you're saying is: If you operate via a LTD, and you claim travel expenses to a temporary place of work and aren't caught by the 24 month rule, then claiming subsistence is allowed and the only reason *not* to do it is personal choice at the 'hassle' of receipting expenses and submitting them in your annual accounts.

Pretty much sums it up, although as this thread shows some people seem to think not claiming lunch is the right thing to do. That's still their choice.

[Willapp]

FWIW I don't believe the canteen is subsidized, it's staffed by external employees and not really cheaper than you'd expect to pay offsite but the food is nice and it's convenient. Point taken though maybe it's an unnecessary risk and I could limit claims to offsite meals only.

[pr1]

If your canteen is subsidised, then yes you are taking advantage of an employee benefit. If it comes to an investigation, Mr Taxman may use that against you and lets face it he would be right to be fair. Either eat outside client site or if its all uber cheap, suck it up and pay yourself.

in this case of a subsidised canteen, it's only whether or not you're allowed/entitled to use it, not whether you actually use it, that matters