confused need advice on expenses

sootyfaestoney

Hi folks, just a quick question. I work in england but live in scotland i do 9 on 5 off shift, i pay my hotel bill and claim it back off employer, i also claim £5 per night for meal, question do i need a reciept for the meal and does that reciept need a vat number on it, as some of the greasy spoons i eat in just have manual reciept issue.
Also am i liable for tax on the hotel as i have only been doing this for under a year. plus do i not pay vat on the bill then tax again on the expenses return in my wages. And am i classed as working from home as the business is based in england and i stay for 9 nights or is that an accomodation allowance.
cheers
sooty

fengirl_2

Not enough information here about your job. What exactly is your job and where is the hotel you stay in - is staying away from home part of your job?

sootyfaestoney

i install high voltage sub stations the head office is down south but we mainly work all over the south east of england but the hotel i stay in is at gatwick. i have to stay away from home as i cant travel from scotland every day.

fengirl_2

On the face of it, you are liable for tax on the hotel and meal costs. as they are not incurred wholly exclusively and necessarily in the performance of your duties. Whether or not you produce meal receipts with a VAT number is down to your employer. The VAT which is paid on the hotel costs would, I imagine be reclaimed by your employer, but this has nothing to do with your personal income tax laibility.

TM1976

The key thing here is whether you are classed as working from home or being field based - what does your contract of employment say?

If this is true all these expenses should be tax free. If you are permanently based at the head office travel and subsistance expenses related to your visits there should be taxable.

You may also be deemed to be based at another location if you spend >40% of your time there over a 2 year period, even if your contract says otherwise.

Your meal invoice is not necessarily required for tax purposes if your employer has agreed the £5 allowance with the tax office.

sootyfaestoney

didnt quite get the jist of that. do you mean based as in my boss lives there and has a yard there or do i work from there. and this 40 percent rule is that away from home or the base.sorry i am not too clear.
i work for a company that has an office in upper scotland central scotland and england, i work from the one in england i could be sent anywhere in the country but not on a permanent basis, i go where the company tender for jobs. primeraly i go to the english base for 9 days work and 5 back home in scotland on rest days. i stay in a hotel, i pay the bill and claim it back in expences, but that seems to me to be paying vat on the bill when i pay. then tax on the bill out of my wages and then more tax as the expences are taxed too. this is a minefield to me.
cheers sooty

TM1976

If the office in England is classed as a permanent place of work for tax purposes then your trips to this location are not a business expenses and are taxable as a benefit in kind if your employer pays them. Basically you need to provide more information on this to determine whether this is a permanent place of work, see the following:

In your contract of employment does it say you are based at the office in the south of England or somewhere else? Where does it say you are based?

How much of your working time do you spend in the office in England? Is it more than 40% of your working time?

Do you have an office or a desk in the building in England? Can you be expected to be contacted there?

nexuss

Your scenario is similiar to shopfitters who work away from home all week.With their scenario their employer pays their hotel bills as they work on an employed basis.