Value of expenses when staying away on business?

IDN101

Hi all,

I am going away on business for a few nights next week. This is for my own limited company. Can anyone please advise on the value of expenses I can legitimately claim for evening meals, etc? Or better still point me towards a HMRC data sheet- I've searched the HMRC website but can't find any specific info.

Many thanks

Regards,
Ian

Pennywise

You just claim the amounts you actually spend on reasonable and necessary subsistence. A pizza from a Pizza Hut is fine, spending a hundred pounds on a gourmet meal isn't. Likewise, just getting your meals from the hotel restaurant added to your room bill is fine as long as it's not excessive. It's possible to ask for a dispensation from HMRC to claim "round sum" amounts which would usually be £5 for a breakfast or lunch and £10 for an evening meal which also gives you HMRC thinking as to reasonable amounts. But, you can't claim if you don't spend the money so if you don't actually spend the money, then there's no claim to make.

sinizterguy

Spending a hundred pounds on a gourmet meal, staying in a five star hotel and flying or taking the train in first class are all fine.

HMRC cannot tell you where to spend your money and how. As long as it is wholly for the purpose of business.

If you work for someone other than yourself, then they set the policy and you follow it.

Please don't present drivel as fact.

I have done all of the above. I have had my tax return looked at by HMRC for an unrelated matter and they couldn't have cared less where I ate, or which hotel I stayed in. Or how I got there.

PlutoinCapricorn

It is easy to forget that the expenses are just used to offset income and are not refunded, so the more expensive the meal and hotel, the more money comes out of your own pocket.

Flugelhorn

PlutoinCapricorn wrote: »

It is easy to forget that the expenses are just used to offset income and are not refunded, so the more expensive the meal and hotel, the more money comes out of your own pocket.

agreed... I have lots of professional subs to pay and the usual comment is "oh they are tax deductable" ... yes but I still have to pay the rest!

IDN101

Many thanks guys,

I am staying in a Premier Inn- so certainly not excessive.

So it seems a long as its a "reasonable" amount that's fine. I just had it in my mind (for some obscure reason) that HMRC had set limits- ie (for example) £20 / day for breakfast, lunch, dinner. Ie there was an upper limit to what you could claim as an allowable expense. But you guys are saying there's no such definitive value.

Thanks once again
Regards,
Ian

sinizterguy

IDN101 wrote: »

Many thanks guys,

I am staying in a Premier Inn- so certainly not excessive.

So it seems a long as its a "reasonable" amount that's fine. I just had it in my mind (for some obscure reason) that HMRC had set limits- ie (for example) £20 / day for breakfast, lunch, dinner. Ie there was an upper limit to what you could claim as an allowable expense. But you guys are saying there's no such definitive value.

Thanks once again
Regards,
Ian

There is no reasonable-ness or definitive value.

As long as the expense is wholly for the purpose of business, you can
- Eat a sandwich from Tesco or go to a Michelin starred restaurant
- Stay at EasyHotel or Waldorf Astoria
- Fly Easyjet or private jet

Just remember you will still be paying 60% of the amount, after the tax rebate is taken into account (if you're a high rate tax payer).

Johnandabby

sinizterguy wrote: »

Just remember you will still be paying 60% of the amount, after the tax rebate is taken into account (if you're a high rate tax payer).

OP said it was a limited company so doesn't affect tax payments for the OP personally. One of the perks of having your own company, provided that you are making enough money to afford to do it! Always good to start with as low expenses costs as possible, but don't be out of pocket personally as the company needs to stand on its own feet.

sinizterguy

Johnandabby wrote: »

OP said it was a limited company so doesn't affect tax payments for the OP personally. One of the perks of having your own company, provided that you are making enough money to afford to do it! Always good to start with as low expenses costs as possible, but don't be out of pocket personally as the company needs to stand on its own feet.

True.

I was making the assumption that this money will somehow reach the OPs pocket at some point, but he may have had paid less than 40% tax when it does.

zygurat789

sinizterguy wrote: »

Spending a hundred pounds on a gourmet meal, staying in a five star hotel and flying or taking the train in first class are all fine.

HMRC cannot tell you where to spend your money and how. As long as it is wholly for the purpose of business.

If you work for someone other than yourself, then they set the policy and you follow it.

Please don't present drivel as fact.

I have done all of the above. I have had my tax return looked at by HMRC for an unrelated matter and they couldn't have cared less where I ate, or which hotel I stayed in. Or how I got there.

Is eating ever wholly for business purposes?

duchy

Yes if it is corporate entertaining -eg taking a client out to lunch however in this instance this is about sustenance whilst travelling on business.