Reply to: Another 2 year expenses question

[northernladyuk]

It's not hard to work out. You've been given plenty of links and even the one to the HMRC page which has it all there. Time for you to do some thinking now.

Try and understand the root of the rule. The difference between a temporary and permanent location and not only will you understand your question but you will have learned something.

Or the OP could ask your accountant?

[northernladuk]

Wow, thanks for all your input, I didn't expect so many responses.

So to summarise:
I can claim for the journeys to the 2 other locations?
I can claim food ( or can I still claim subsitance ?) when working away regardless of location?

Even though it was coming direct out of the business account, when working at my contractual location:
I can't buy the train tickets through the business?
I can't pay for the accommodation through the business?

Many thanks

It's not hard to work out. You've been given plenty of links and even the one to the HMRC page which has it all there. Time for you to do some thinking now.

Try and understand the root of the rule. The difference between a temporary and permanent location and not only will you understand your question but you will have learned something.

[malvolio]

What you're forgetting is that this is about tax relief, not personal expenditure. If the 24 month rule applies (as it does for Bristol), you can pay for things like always, but they are treated as a BIK so you don't get the tax back. Doesn't really matter who pays for it, it's a benefit to you so is treated as taxable income, even if you don't actually touch the money yourself. That's what the P11d is for. I've always put all business expense through the company and can't remember the last time I put in an expense claim.

As has been said, go back to the guides, on here and on the IPSE website, and start reading. What else don't you understand?

[SueEllen]

Wow, thanks for all your input, I didn't expect so many responses.

So to summarise:
I can claim for the journeys to the 2 other locations?
I can claim food ( or can I still claim subsitance ?) when working away regardless of location?

Even though it was coming direct out of the business account, when working at my contractual location:
I can't buy the train tickets through the business?
I can't pay for the accommodation through the business?

Many thanks

I suggest you read through the thread again. You really must understand your situation yourself. Also you can clarify your understanding with your accountant.

[icemancomeths]

Wow, thanks for all your input, I didn't expect so many responses.

So to summarise:
I can claim for the journeys to the 2 other locations?
I can claim food ( or can I still claim subsitance ?) when working away regardless of location?

Even though it was coming direct out of the business account, when working at my contractual location:
I can't buy the train tickets through the business?
I can't pay for the accommodation through the business?

Many thanks

[northernladuk]

I asked my accountant today who confirmed that I can claim the £5 a night. He did suggest that I don't backdate into any earlier years just the current year.

Send an invoice to the old accountants for £5 a night you couldn't claim because if their poor advice and another to the new accountant for the all £5 a night you haven't claimed becasue they didn't spot it and tell you.

[SueEllen]

I asked my accountant today who confirmed that I can claim the £5 a night. He did suggest that I don't backdate into any earlier years just the current year.

Nice that we have to do the accountant's job for him.

That reminds me I need to check I've claimed my £5s.

[Lance]

It seems logical that all expenses have to pass the wholly and necessary test, and eating as a general activity doesn't fall within that.

Unless there's an exemption. Eating is classed as an exemption when part of business travel (eg. when you stay away overnight)

[Lance]

There are certain things e.g. vending machines where you can't get a receipt so this is what the £5 is for.

I asked my accountant today who confirmed that I can claim the £5 a night. He did suggest that I don't backdate into any earlier years just the current year.

[SueEllen]

I got the grey area bit from one of those talks given by some contractor accountancy firm. I can't remember which one as it was a while ago. They also claimed you could make a number (the exact number escapes me as I considered it to be BS) of £75 gifts to yourself (in addition to the annual £150 staff entertainment allowance), which I never fathomed where the hell they got that from.

It seems logical that all expenses have to pass the wholly and necessary test, and eating as a general activity doesn't fall within that. I think it's more the difference between expenses that do/don't need to be declared on your P11d rather than whether or not you can put them through YourCo. AIUI you can put whatever you like through YourCo, just be prepared to answer any questions and cough up if Hector disagrees with the tax treatment you apply.

What you need to report on the P11d changed this year - linky

[pr1]

I got the grey area bit from one of those talks given by some contractor accountancy firm. I can't remember which one as it was a while ago. They also claimed you could make a number (the exact number escapes me as I considered it to be BS) of £75 gifts to yourself (in addition to the annual £150 staff entertainment allowance), which I never fathomed where the hell they got that from.

It seems logical that all expenses have to pass the wholly and necessary test, and eating as a general activity doesn't fall within that. I think it's more the difference between expenses that do/don't need to be declared on your P11d rather than whether or not you can put them through YourCo. AIUI you can put whatever you like through YourCo, just be prepared to answer any questions and cough up if Hector disagrees with the tax treatment you apply.

gift value <=£50 (max £300 per year)
https://www.gov.uk/expenses-and-bene...ivial-benefits

not BS, nice tax free way to pay for your nespresso pods or a bottle of gin

[ladymuck]

I got the grey area bit from one of those talks given by some contractor accountancy firm. I can't remember which one as it was a while ago. They also claimed you could make a number (the exact number escapes me as I considered it to be BS) of £75 gifts to yourself (in addition to the annual £150 staff entertainment allowance), which I never fathomed where the hell they got that from.

It seems logical that all expenses have to pass the wholly and necessary test, and eating as a general activity doesn't fall within that. I think it's more the difference between expenses that do/don't need to be declared on your P11d rather than whether or not you can put them through YourCo. AIUI you can put whatever you like through YourCo, just be prepared to answer any questions and cough up if Hector disagrees with the tax treatment you apply.

[SueEllen]

my last accountant told me not to claim the £5 as I was claiming all expenses by receipt. Was that wrong?

There are certain things e.g. vending machines where you can't get a receipt so this is what the £5 is for.

[TheCyclingProgrammer]

my last accountant told me not to claim the £5 as I was claiming all expenses by receipt. Was that wrong?

Yes I think so. The £5 is for incidental overnight expenses and is intended to cover small things that you probably wouldn’t have a receipt for.

[Lance]

What you are quoting where the old rules some umbrellas use to use.

As a limited company director, company secretary or mere employee you have always had to proof or produce receipts for subsistence.

Most employers would set maximum amounts, and like umbrella companies, would have rules of what/when you could claim to avoid employees taking the p*ss. There as HMRC don't care apart from the £5 per night incidental expenses of staying away.

my last accountant told me not to claim the £5 as I was claiming all expenses by receipt. Was that wrong?