Any views on Subsistence- food expenses?

Murphy_The_Cat

skyjumper wrote: »

thanks a lot murphy for the tips

any more Good "tips" really aprreciated

keep reciepts for absolutely everything that you 'think' could be relevant to your business - pass them to your accountant on a regular basis and let him advise you on what you can and can't claim.

I can't stress enough how important it is that you ask for reciepts for everything (even a cup of coffee) while you are out and about - and that is before you consider submitting unreciepted expenses claims on a daily basis.

stphnstevey

Murphy_The_Cat wrote: »

A couple of 'good ones' to keep a note of
1) on every night that you are required to stay away from home on business, you can claim £5 tax free from the company for &
2) if you choose to stay at a friends or relatives house, rather than at a hotel (while on business), you can claim a small amount tax free as expenses without a reciept - the guideline figure being IIRC £25.

As for your sustinence expenses - be realistic & don't take the pee. Your accountant will advise you on what it and what isn't acceptable .

Looked at your link, but can't understand what the £5 is for????

Murphy_The_Cat

stphnstevey wrote: »

Looked at your link, but can't understand what the £5 is for????

its for whatever you want it to be ! HMRC suggests that iy is used for newspapers, telephone calls, laundry etc - but as long as the employee doesn't make a seperate claim for those items OR they are not totalled up onto the room bill, the £5 can be paid out for EACH NIGHT that you are awy, tax free, without any supporting reciepts.

here you go.

here's the google for Personal Incidental Expenses:beer:

LittleVoice

skyjumper wrote: »

thanks
If i were to claim say £ 30 per month approx.as expense from the company account, how would that affect my Profits when I calculate the Corporation tax.
what i need to know is that would I be paying tax twice on the expenses I take out from the company?

The expenses (as long as supported by evidence and not just a round sum) will reduce your profit - and therefore tax payable on them.

You would not be paying tax on your expenses when received by you because they would be reimbursing you for costs incurred on behalf of the business. So no double tax - or even single tax.

stphnstevey

Murphy_The_Cat wrote: »

its for whatever you want it to be ! HMRC suggests that iy is used for newspapers, telephone calls, laundry etc - but as long as the employee doesn't make a seperate claim for those items OR they are not totalled up onto the room bill, the £5 can be paid out for EACH NIGHT that you are awy, tax free, without any supporting reciepts.

here you go.

here's the google for Personal Incidental Expenses:beer:

Thanks - do you need receipts or can you just be paid £5 per night?

Where does it say about the £25?

Murphy_The_Cat

stphnstevey wrote: »

Thanks - do you need receipts or can you just be paid £5 per night?

Where does it say about the £25?

No reciepts needed, as long as you don't try and claim the for the same goods seperately. Plus, and this is important, you do not claim 1p over the £5 per night limit - if you do, it becomes taxable.

If you do a google for 'HMRC staying with relatives or friends' you will find numerous refernces to it from many many organisations on their list of allowable expenses, but I'm currently unable to find the direct HMRC reference to it - but I'll keep looking !

Murphy_The_Cat

Found it, from the HMRC website, Staying With Friends or Relatives while on business.

stphnstevey

Just read that I can't just pay myself the maximum allowance for meals on a business trip - I need to pay exactly what the expense was and also keep receipts in case I am audited

Murphy_The_Cat

stphnstevey wrote: »

Just read that I can't just pay myself the maximum allowance for meals on a business trip - I need to pay exactly what the expense was and also keep receipts in case I am audited

After recently having the pleasureable experience of a Compliance Visit by HMRC, I can personally vouch for how much 'fun' they can be.

It's absolutely vital that you keep reciepts for EVERY thing that you claim back andif possible, supporting evidence of why the expense was required - and keep these for 6 years, just in case they go back to 'comfirm details'. If you haven't got any supporting evidence for previous expense claims, now may be a good time to refresh your brain cells and record it. A diary that you can keep in your car/desk at work is an invaluable tool in this respect. Please believe me when I say that several hours now making sure that your past supporting evidence is up to date (& completely legitimate) may save you many, many thousands of pounds down the line.

But its not all dark news. If you are fortunate enough to own a Company outright yourself, then the amount of money & what you can claim for LEGITIMATELY can be substantial and if your wife/husband owns the Company with you, then all the better.



p.s. but the absolute golden rule is, as always, don't take the p*ss.

stphnstevey

I do retain receipts for most things - however it was particularly lunches while on business trips as the client was reimbursing me £6 a day.

I claimed the full allowance and took sandwiches. So there was no real spend, so no receipt.

Was just reading about Unbrella Companies (not that I am working through one) and them getting into trouble for this.