Foreign Benchmark Rates - Using/Restriction advice please

[ConsultantPM]

Hi,
First post......be kind!
I have a small limited company, providing a PM contracting service. Two Directors. Main client is in Dublin and I make a trip roughly monthly.

I've been using the HMRC benchmark rates for Dublin. Much more simple than collecting and managing endless receipts. Sometimes the rate covers my costs and sometimes it doesn't.....balances out I reckon. I called HMRC before using them to confirm that was ok and that my understanding of them was right. They were happy with what I was doing.
My accountant has recently challenged my use of the benchmark rates giving multiple reasons why I shouldn't, including criteria I must comply with. Much of this seems to go against my previous understanding and I wanted to put it out there for other views.

They say that for an owner managed business, that there must be evidence (receipts) that the claimant is incurring the costs, and that the amount claimed is not more than the amount claimed. This seems to go against the reason for having the benchmark rates. My understanding is that those rates allow the claimant (me) to claim a set amount and then manage the actual costs myself, personally. The idea being that it simplifies the process all round. Am I misunderstanding something?

To clarify, the trips are evidenced by flights, airport parking etc on the uk side. There are no fictitious trips!

 

[Gyumri]

I think your understanding must be right although with so much angst caused over benchmark rates it's just another idiotic piece of red tape used to measure business expenses - rather like business and personal mileage used for company cars - or whether a jaffa cake is really a cake or a biscuit.

https://library.croneri.co.uk/cch_uk/p11d/40-105

 

[Newchodge]

I think the benchmark rates are primarily for the convenience of employers, paying for or reimbursing employee travel. As an owner/employee they are asking for independent evidence.

 

[Gyumri]

I think the benchmark rates are primarily for the convenience of employers, paying for or reimbursing employee travel.

Has the scheme been extended to cover travel expenses? I think it just covers any cornflakes or other meals taken in the course of travel for business purposes. And they are capped so that even beer and sandwiches might just exceed the £5 benchmark rate for an 8 hour trip - in which case the excess is considered to be an employee benefit and taxable.

it sounds like just another heap of nonsense, as the employer still has to retain some evidence of the expenditure.

 

[Newchodge]

Has the scheme been extended to cover travel expenses? I think it just covers any cornflakes or other meals taken in the course of travel for business purposes. And they are capped so that even beer and sandwiches might just exceed the £5 benchmark rate for an 8 hour trip - in which case the excess is considered to be an employee benefit and taxable.

it sounds like just another heap of nonsense, as the employer still has to retain some evidence of the expenditure.

Sorry, I meant expenses incurres as a reult of travel.