Legitimate Company Expenses

AlanR · Dec 17, 2008

Good afternoon,

I have done a search on the forum but couldn't find an answer so i am hoping that somebody can help me by either answering my questions or pointing me in the right direction. Here goes.

I currently operate through my own Ltd Co as an Engineering Consultant and my current contract is close enough to home such that i commute each day. However this contract ends early next year and it looks unlikely to be renewed so i have started looking elsewhere.

I have the opportunity of a 12 month contract that, which due to the distance , will mean that i will have to live away from home 4 nights a week so my question is this, what expenses can i legitimately claim through / from my company?

I am happy with the mileage 10k @ 40p then 25p after that but what about accommodation? To begin with it will probably be B&B for 4 nights a week until i can find lodgings. Can i claim the full cost of B&B and the lodgings through my Ltd Co?

Can i claim for food or a meal each day that i am away?

I would appreciate any information or advice that you can offer.

Regards

Alan

MyAccountantOnline · Dec 17, 2008

I do strongly advise you to see an accountant to discuss this - in advance this may help -

http://www.hmrc.gov.uk/incometax/relief-travel.htm

http://www.hjcca.co.uk/resources/tax_zone/tax_helpsheets/helpsheet.php?hsType=3&hsId=24

AlanR · Dec 18, 2008

Nicola,

Many thanks for the links.

I do have an accountant but he charges me if i ask him the time of day!!

I was hoping that somebody on this forum could help me and in doing so help me save some money. If however you are saying that the only way i can get this kind if information is by contacting my accountant then i will have to do that.

Regards

Alan

MyAccountantOnline · Dec 18, 2008

Many accountants now offer free telephone advice so maybe time to consider changing

It really would be best to get some proper professional advice from an accountant that knows your full circumstances etc.

AlanR · Dec 18, 2008

Nicola,

I fully intend to once my accountant has finished my year end accounts. Can you recommend anybody

Alan

MyAccountantOnline · Dec 18, 2008

If you are in the Wiltshire area I'd be happy to meet with you and discuss matters, if not if you post the area you are in I am sure their are some good accountants on here who will be able to help. Even better ask some friends in business or fellow professionals to recommend someone.

oldeagleeye · Dec 18, 2008

To cut to the crack Alan. Yes you can claim resonable accommodtion and meal allowances. If you couln't no company would be able to employ reps that travel around the world and they ain't all PLC.

For convenience I would use a seperate debit card for this however. Most B & B take them and you have an easy monthly statement listing payments. Use it for your petrol too and to be on the safe side don't take liberties.

The accommodation fine. Allow £4.50 for breakfast if not provided and £10 for evening meal. If you have a full english you probably won't need lunch. Rob

Zeno · Dec 18, 2008

If I were you Alan, I would go with Nicola if possible.

The reason is that this is an area that many accountants tend to give bad advice on. The treatment of these expenses varies from practice to practice.

With Nicola you will know you are getting good advice.

AlanR · Dec 18, 2008

Nicola HJ said:
If you are in the Wiltshire area I'd be happy to meet with you and discuss matters, if not if you post the area you are in I am sure their are some good accountants on here who will be able to help. Even better ask some friends in business or fellow professionals to recommend someone.

I live in south Wales, just over the Severn Bridge near to Newport. Do you offer accountancy services 'online' as such?

Alan

MyAccountantOnline · Dec 18, 2008

AlanR said:
I live in south Wales, just over the Severn Bridge near to Newport. Do you offer accountancy services 'online' as such?

Alan

Alan I have just sent you a PM

David Griffiths · Dec 18, 2008

AlanR said:
I live in south Wales, just over the Severn Bridge near to Newport. Do you offer accountancy services 'online' as such?

Alan

Alan, sent you a PM

AlanR · Dec 18, 2008

oldeagleeye said:
To cut to the crack Alan. Yes you can claim resonable accommodtion and meal allowances. If you couln't no company would be able to employ reps that travel around the world and they ain't all PLC.

For convenience I would use a seperate debit card for this however. Most B & B take them and you have an easy monthly statement listing payments. Use it for your petrol too and to be on the safe side don't take liberties.

The accommodation fine. Allow £4.50 for breakfast if not provided and £10 for evening meal. If you have a full english you probably won't need lunch. Rob

oldeagleeye,

Thanks for the info. I understand that i can claim 'reasonable' allowances, however some peoples idea of 'reasonable' is, well, for want of a better description - interesting!

I also use a forum for IT people and did a search on there recently and i was amazed at what people where claiming for. Somebody claimed for a new Central Heating system to be installed in his house because he 'used' one of their rooms as a Home office. I find it hard to believe that that is reasonable.

I don't want to make a killing so to speak, just want to make sure that i am personally not out of pocket.

Regards

Alan

UKSBD · Dec 18, 2008

I was recently given a dispensation notice and the wording on that is,

"The reasonable cost when supported by the relevant receipts or invoices
of accomodation, breakfast, lunch, if applicable, and an evening meal
(except where accompanied by a spouse or relative etc)"

There is also a £5 allowance for incidental overnight expenses
(£10 if outside UK)

kylataff · Dec 18, 2008

Hi
I'm also looking for an accountant in the South Wales area (chepstow) if anyone can give me any reccomendations
thanks

David Griffiths · Dec 22, 2008

Hi Kylataff

I've only just seen this, and don't seem to be able to send you a PM.

I'm based in Cwmbran. Office number is O1 633 877 9OO . Quite happy to meet and have a chat without obligation

David

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