Corporate expenses?

[sabio]

Hi,

I've Ltd company and I'm doing all of my work from home. What purchases I'm allowed to make in the name of the company. For example coffee, food, lunches, toilet paper etc? Where can I find guidelines about this? And if buying supplies for the company such as mentioned from above can claim VAT refund? Sorry for asking a rather obvious question perhaps but where I come from, Sweden, the authorities are very strict with the separation of your business and private life.


Thanks!

 

[Scalloway]

If you are speaking about your own personal lunches, coffee etc you can't claim for them. You can claim for a proportion of your house heating, council tax etc.

 

[sabio]

Hi and thanks for your reply. But on normal workplace it's the company buying the coffee for the employees right? What's the difference? And what if I eat my lunches (this is all during working hours) on a restaurant?

Thanks!

 

[DFL Accountants Ltd]

Hi

Sorry - when working from home you cannot claim for tea, coffee, toilet paper etc as HMRC work on the fact that you would be eating and drinking the same if you were working or not working.

Also, it doesn't matter if you eat you lunch in restaurants - unless you are travelling on business outside your local area (not sure of exact distance HMRC say you must be from your home/office) - basically would it be reasonably expected that you could travel home for lunch?

If you are working far enough away from home then you can claim tea, coffee, food, etc as 'Subsistence' - but make sure you keep the receipts and a log of who you were working for!

For working from home you can claim 'Rent' and 'Use of Home' - by this you can put a proportion of you household expenses (such as Mortgage Interest/rent, Council tax, water rates, electric, etc) through the business - but not tea, coffee, etc I'm afraid.

If you want a details of how to calculate your 'Rent' and 'Use of Home' please PM me and I will send you a 'rough guide' by e-mail.

Kind regards

 

[MyAccountantOnline]

HMRC's guidance on this might be helpful. Here's a link - http://www.hmrc.gov.uk/manuals/eimanual/EIM32760.htm

 

[sabio]

Thanks a lot to both of you for the answers! I'll have a look at the guidelines