travel expenses
Discussion
I am fairly new to claiming expenses although i have run a ltd compyany for a few years.
I know i can ask my accountant but wanted some views from people who have done this for many years.
Myself and another director (there are only 2 of us) are off to Germany for a print show and im trying to figure out how i record expeneses, flights and hotel seem easy enough but what about money spent on meals and gettings about, is it as simple as keeping receipts? Do i use the company debit card for everything and not worry?
Any advice would be great.
I know i can ask my accountant but wanted some views from people who have done this for many years.
Myself and another director (there are only 2 of us) are off to Germany for a print show and im trying to figure out how i record expeneses, flights and hotel seem easy enough but what about money spent on meals and gettings about, is it as simple as keeping receipts? Do i use the company debit card for everything and not worry?
Any advice would be great.
How does the company pay these costs in the first place?
Generally, it is better for a limited company to use its own resources ((i.e. its own bank or credit card account) to pay for business costs.
If the directors or employees do end up paying for such things out of their own pocket (i.e. cash, personal bank account or personal credit card), they are of course entitled to reclaim these costs from their company/employer. This, in theory, is best done by having a formal "expenses claim" procedure - as many of us will have experienced as an employee. This usually means retaining the receipts associated with the costs incurred and then completing an expense claim form to the company so that the expenses are
a) reclaimed from the company
b) properly annotated and recorded by the company
Obviously, in the modern world, not all expense receipts may be in paper form, so, if you are getting receipts from suppliers in an electronic format, you must ensure that you record them in such a way that they can be presented to the company/employer and recorded by them properly.
Generally, it is better for a limited company to use its own resources ((i.e. its own bank or credit card account) to pay for business costs.
If the directors or employees do end up paying for such things out of their own pocket (i.e. cash, personal bank account or personal credit card), they are of course entitled to reclaim these costs from their company/employer. This, in theory, is best done by having a formal "expenses claim" procedure - as many of us will have experienced as an employee. This usually means retaining the receipts associated with the costs incurred and then completing an expense claim form to the company so that the expenses are
a) reclaimed from the company
b) properly annotated and recorded by the company
Obviously, in the modern world, not all expense receipts may be in paper form, so, if you are getting receipts from suppliers in an electronic format, you must ensure that you record them in such a way that they can be presented to the company/employer and recorded by them properly.
In addition, I would recommend getting and using a company credit card rather than a debit card.
Watch the bank charges on either for non-sterling transactions. Individually, these may not be a lot but can add up.
Check with your bank on whether you need to notify them of intended use abroad. Unlikely this would apply in Germany but I have had occasions when the card was blocked because the purchase triggered an alert (I assume). For the sake a phone call, worth a check.
Watch the bank charges on either for non-sterling transactions. Individually, these may not be a lot but can add up.
Check with your bank on whether you need to notify them of intended use abroad. Unlikely this would apply in Germany but I have had occasions when the card was blocked because the purchase triggered an alert (I assume). For the sake a phone call, worth a check.
Is it your company?
If so, at the end of the day you should retain whatever proof is needed to justify to a third party what you spent.
When we travel for the company I usually just keep a detailed record of what we spent where, with receipts where possible, but if it isn’t don’t sweat too much about it... for example when you’re entertaining overseas and buy a few beers with a supplier/customer it can look a bit odd asking for a reciept so I just record the expense at the end of the evening and note “no receipt”, often easier if you know it’s going to happen to take a known amount with you and then count the change.
I rarely use a card overseas as i hate paying non sterling transaction fees!
If so, at the end of the day you should retain whatever proof is needed to justify to a third party what you spent.
When we travel for the company I usually just keep a detailed record of what we spent where, with receipts where possible, but if it isn’t don’t sweat too much about it... for example when you’re entertaining overseas and buy a few beers with a supplier/customer it can look a bit odd asking for a reciept so I just record the expense at the end of the evening and note “no receipt”, often easier if you know it’s going to happen to take a known amount with you and then count the change.
I rarely use a card overseas as i hate paying non sterling transaction fees!
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